On November 10-13, 2020, the research team of China Cotton Textile Industry Association went to Hangzhou, Suzhou, and Jiaxing to investigate and visited many local spinning enterprises to understand the operation of the enterprises.

The companies visited by the research team were mainly vortex spinning companies, which converted about 1.3 million ring spinning spindles. They mainly produced polyester, viscose and polyester-viscose blended yarns, and a small part of them produced modal, cationic, bamboo fiber, flame-retardant fiber, etc. Chemical yarn, the product count is between 10-60s. The main markets are Zhejiang and Guangdong, and some products are exported to Europe.

According to the company, the current vortex spinning market is generally good. Affected by the epidemic, the market conditions in March to May this year have been poor. They have started to improve since May, and the market has recently fallen back. The production opening rate of enterprises has basically reached 100%, and the product inventory is small. However, some enterprises have reported that recently affected by the market decline, yarn prices have fallen and profit margins are low.

The companies visited generally report that it is difficult to find highly educated talents with textile majors, which is a major problem facing companies. Companies need highly educated professionals in production management, product development, and quality control. Talents with academic qualifications tend to go to big cities for development, and it is difficult for factories to retain talents. At present, enterprises are exploring cooperation with textile colleges and universities, through various conditions to attract more highly educated professionals to work in enterprises.

Regarding future market forecasts, companies said that although they are not very optimistic about the short-term market, they are still confident in long-term development. Some companies have invested in Sichuan, Xinjiang and other places and have established plans to increase production capacity year by year.

From November 11th to 13th, the research team of China Cotton Textile Industry Association went to Henan Taikang, Xiangcheng, Wugang and other places to investigate and understand the company's production and operation and market changes.

The companies visited this time involved cotton spinning, filament weaving, knitting, clothing and other fields, covering a spinning capacity of more than 1.2 million spindles, and the products were mainly pure cotton yarn. Enterprises generally report that the effect of enterprise destocking in the first three weeks of October is obvious, and it has slowed down since the fourth week, and then began to decline after November. Most of the corporate customers visited are old customers accumulated for many years, and the mutual cooperation and adhesion are relatively high, so the sales situation is relatively stable.

The raw material is mainly pure cotton, including reserve cotton, imported cotton and other sources. The inventory level ranges from one month to three months. The products are mainly pure cotton yarns, with yarn counts ranging from 10 to 60. When the sales situation is good, order production is the main product, and the production of conventional varieties is converted to the off-season.

In terms of labor, Henan is a populous province with abundant labor resources, but it also faces the problems of aging employees and a shortage of technical talents. Some companies report that the enrollment of colleges and universities this year is obviously not as good as in previous years. During the survey period, some companies are conducting operational competitions, which shows that they attach importance to operational levels and product quality.

In terms of cost, the average monthly salary in the visited areas is about 4,000 yuan/kWh. With continuous technological innovation and equipment updates, about 30 people are employed for 10,000 spindles; the electricity bill is priced at peaks and valleys, with an average of about 0.6 yuan/kWh.

According to Yuan Jianlong, executive chairman of Henan Textile Industry Association, the effect of the transformation and upgrading of cotton textile enterprises in Henan Province is obvious. Large enterprises adopt the policy of high production and cost sharing, and small enterprises take the path of differentiated development, and give play to their respective advantages to gain a place in the market.

For the development of the market outlook, companies generally adopt a cautious attitude, especially in cotton procurement, following the market trend, and adopting a wait-and-see attitude of buying at low prices and paying high prices on the basis of ensuring production.