Domestic demand is growing and exports are hampered

Domestic demand, the first half of the domestic textile clothing performance is better, in May 2023, clothing shoes and hats, needles, textile goods retail sales of 107.6 billion yuan, an increase of 12.3%, an increase of 2.38%. January to May cumulative retail sales of 561.9 billion yuan, an increase of 14.1%, the domestic textile and clothing retail performance is still relatively strong.

In terms of exports, the export volume of cotton products from January to May was 2.628,500 tons, a year-on-year decrease of 11.34%. The export value was 30.583 billion US dollars, down 12.76% year-on-year. From January to May, China's exports of textiles and clothing were 118.211 billion US dollars, down 5.48% year-on-year; Among them, textile exports fell 9.4% year-on-year, and clothing exports fell 1.1% year-on-year. At present, there is still the pressure of finished products in Europe and the United States, and it will take time for external demand to recover.

After-market forecast: in the first half of the year, under the support of cost and demand, the cotton yarn market rose, and the current industry is in the traditional off-season, and the cotton yarn price fell. The downstream grey cloth market is light, and the performance of home textile grey cloth is not as good as the previous period, in addition, according to the experience of previous years, some regions may have limited electricity policies in July-August, and some textile factories have production reduction plans. It is expected that in the off-season atmosphere in July, the cotton yarn market will be vulnerable to adjustment, but the cost support is still there, the lower drop space is limited, and the cotton yarn market will fluctuate with the cost surface in the medium and long term.