The denim market warms up in the second half of 2020, orders and domestic sales increase significantly
In the past month, the domestic cotton spot price fluctuated and rose, the overall price of denim yarn was weak, and the price of indigo dye remained stable; in terms of fabrics, the market was on the rise, and denim fabric manufacturers accelerated product innovation to adapt to the new market environment. 1. Since September in the raw material market, under the influence of multiple factors such as the issuance of reserve cotton, the increase of cotton sliding tax quotas and Sino-US trade frictions, domestic and foreign cotton futures prices have fluctuated upwards. On September 25, the spot price of domestic 3128B cotton was 12,910 yuan/ton, up 255 yuan/ton from the same period last month. From the perspective of denim yarn manufacturers, although the price of cotton has risen, the price of yarn has risen weakly. Taking 10-inch pure cotton yarn as an example, the price of ring-spun yarn was the same as last month, and the price of rotor-spun yarn was the same as last month. The line price continued to decline, down 55 yuan per ton from the previous month. At present, the yarn inventory of most denim yarn manufacturers is about 45 days, which is the same as last month. In terms of dyestuffs, the sales volume of indigo dyes in September was the same as that in August, and the competition among dyestuff enterprises was still fierce. 2. Denim fabric market From the perspective of production, as of September 25, the average capacity utilization rate of key denim fabric enterprises remained at 70%, an increase of 5 percentage points from the previous month. From the perspective of the export market, the epidemic in the United States continues to spread, and the epidemic in Europe partially rebounds. In order to cope with the negative impact of the epidemic, brand owners have used discounts and promotions to stimulate the consumption of denim clothing, and achieved certain results. The number of orders placed increases. From the perspective of the domestic sales market, the terminal demand is slightly on the rise, and there is still a lot of room for market consumption potential to be released. Enterprises actively increase product research and development efforts, increase functional products such as antibacterial and environmental protection to meet the needs of different consumers, and increase sales through exhibitions, live broadcasts, Internet malls and other channels. 3. Market outlook From the perspective of the international market situation, brand owners have adopted promotional measures to relieve sales pressure, which has promoted the increase of foreign trade sales of domestic denim fabric manufacturers; from the perspective of the domestic market, the domestic economic situation continues to improve, and market consumption is slow increase. At the same time, the company actively adjusts the market layout, intensifies the development of the domestic market, and increases the domestic market share.
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