China's cotton spinning company profits are expected to rebound slightly

Textiles are one of China's important export products. Since China's accession to the WTO, the annual export volume of cotton yarns and cotton cloths has ranked among the highest in the world.

According to the latest statistics from the National Bureau of Statistics, in December 2011, China’s spinning output was 2.728 million tons, an increase of 335,000 tons, an increase of 14.0%, and a decrease of 25,000 tons, a decrease of 0.91%.

From September to December 2011, China's yarn production totaled 10.497 million tons, an increase of 15.13% year-on-year; from January to December 2011, China's yarn production totaled 28.984 million tons, a year-on-year increase of 12.4%.

At present, the most concern for textile companies is whether the price of cotton is stable. On the other hand, whether the sales of cotton yarns is smooth or not, and the pace between cotton prices and yarn prices is the survival path for enterprises.

After the ups and downs of cotton prices, this group of figures was circulated within the textile industry last year. 50% of the companies suffered losses, 20% of the companies maintained capital, and only 30% of the companies barely made profits.

According to the statistics of the National Bureau of Statistics, from January to December 2011, the total profit of the textile industry in China was 175.36 billion yuan, a year-on-year increase of 28%. After experiencing a decline in profit growth in July-September, profit growth started to rebound slightly after seeing a 27.5% decline in October 2011.

Around the Spring Festival in 2012, due to the industry's bullish outlook for cotton prices, so that the same bullish cotton yarn, cloth manufacturers have snapped up a large number of cotton yarn in line with their psychological expectations of replenishment stocks, thus boosting a wave of sales boom, is expected in the first quarter of cotton yarn production and sales Ideally.

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