According to a follow-up survey conducted by the China Cotton Textile Industry Association on some cotton textile enterprises, in 2012, the cotton spinning industry continued its weakness in 2011, and its production and sales were weak. Due to lack of demand and holiday and other factors, the company’s inventory was not positive in January. The year-on-year decrease, production decline, inventory of finished products increased, and the increase in cotton prices led to a slight increase in the price of yarn, a significant year-on-year decline, and no significant improvement in corporate earnings.

First, the company's inventory (a) decline in raw materials inventory has slowed down in January, most companies are cautious about the purchase of raw materials, raw cotton inventory continued to decline year-on-year, but the rate of decline has slowed.

The raw cotton inventory of cotton textile enterprises surveyed in January decreased by 3.44% year-on-year, chemical fiber staple fiber decreased by 16.8%, and other fibers decreased by 2.2%. The total inventory of raw materials fell by 4.38% from the same period of last year, and the decrease was narrower than that in December of last year. The inventory days were about 27 days.

(II) The increase in inventory of finished products fell month-on-month The current international and domestic demand decreased, orders decreased, sales were hindered, and the inventory of finished products increased year-on-year. In particular, cotton prices fluctuated significantly in the previous year. Some companies increased the amount of chemical fiber according to market demand in order to avoid risks. At present, there is a serious backlog of chemical fiber products.

In January, cotton yarn inventories surveyed by cotton spinning enterprises increased 2.8% year-on-year, cotton blended yarns increased by 21.2%, and purified fiber yarns inventory increased by 76.9%. Total inventory of all kinds of yarns increased by 13.9% year-on-year, representing an increase of 30 percentage points over the previous year. The inventory of cloth products increased by 33.3% year-on-year, and the growth rate decreased year-on-year, of which the inventory of purified fiber cloths more than doubled.

Second, the production situation (a) the output market demand is not busy, coupled with more holidays in January, the company has a longer holiday, yarn and cloth production have declined.

In January, the yarn production of the surveyed companies decreased by 14.6% year-on-year, of which pure cotton yarns decreased by 17.1%, cotton blended yarns increased by 15.7%, purified fiber yarns decreased by 18.9%, and cloth production volume decreased by 21.8%.

From the perspective of the ratio of yarn production, the proportion of pure cotton yarn in January was 79%, which was affected by the dual factors of the market and the sample, which was a decrease of 4.2% compared with the same period of last year, and the proportion of cotton blended yarn increased by nearly 4 percentage points.

(II) Analysis of raw material consumption According to the company's January statement, the company's raw material consumption per ton of yarn (including cotton and chemical fiber) was 1.084 tons, which was a slight decrease year-on-year and a slight increase on a month-to-month basis, which was mainly affected by changes in the sample companies.

Second, the company's sales situation is driven by the increase in cotton prices, January textile companies offer slightly improved, but compared with the cost of production, profitability is still difficult, the company orders more cautious.

In terms of yarn products, the average selling price of 32 yarns in January was 28,559 yuan/ton, up by 1.2% month-on-month and down by 26% year-on-year.

From the point of view of cloth products, some enterprises adjusted their product mix and adjusted their prices from pure cotton cloth to cotton blended cloth. The sales prices of various types of products fell mainly, with a drop of around 10%.