Textile Investment Is Showing Signs Of Recovery But Overall Industry Profits Are Low.

In the first 7 months, the domestic textile industry's total fixed assets investment amounted to 223 billion 683 million yuan, an increase of 15.40% over the same period last year. The ring increased 2.92 percentage points compared to June.

The increase in investment in textile industry will help the whole market take the road of recovery.

Added value of textile industry grew year-on-year

Data show that in July, the added value of the textile industry increased by 11.80% compared to the same period last year. This figure is not only 2% higher than the annulus, but also 2.6 percentage points higher than that of the same period in the same period.

This part of the added value may be driven by traditional investment and digestion of existing commodity stocks, but its sustainability remains to be seen. After all, the downward pressure on the overall economy is still relatively large.

Textile industry profits fell sharply year-on-year

In the first 6 months, the gross profit of the domestic textile industry amounted to 65 billion 970 million yuan, and the cumulative value increased by 3.6% compared with the same period last year, while the total value of total profits increased by 39.43% over the same period in 2010.

In contrast, this year's textile industry profit growth compared to 2011 sharp decline.

In addition, from 2 to June this year, the total profit of domestic textile industry grew year by year between 2% and 4.5%, much less than that of last year.

It can be said that the domestic textile industry is still struggling at the edge of profit or loss, and it will take some time to continue to warm up.

Spin

The overall index of the textile and garment industry of domestic listed companies has been declining since May, while Zheng cotton also fell sharply during the same period.

As of September 3rd, the textile industry index was 4811.37, down by 10% at the end of June.

Although at present, Zheng cotton and the index form a short-term departure trend, but in the textile and clothing index continued to decline and its prosperity index is still poor, cotton market is still difficult to continue to rise.

Zheng cotton short advantage obvious

Entering the September, the national policy may have a great impact on the trend of Zheng cotton. However, in the face of the soft demand and high inventory of cotton, there are no obvious signs of lightening the main shorts.

At present, from the position of the top 20 members announced by Zheng Shang, the number of selling warehouses is about 140 thousand hands. It is still about 37 thousand hands high, and occupies a certain advantage.

In addition, in the cotton price rebounding process, the enthusiasm of cotton enterprises to sell inflation will also increase.

Summary and operation suggestion

At present, although the investment in fixed assets of textile industry has increased, the value added of textile industry has picked up slightly, but its sustainability needs to be verified in the future market.

The overall profit of the textile industry is low and even the loss may continue. The textile industry index continues to decline and its climate index is poor. It also limits the whole industry's demand for cotton. Therefore, under the constraint of weak demand, the pressure on zhengmihou is still small.

Recently, the price of cottonseed meal and cottonseed oil has also started to rise due to the rise in soybean meal and soybean oil prices.

But demand is weak, the situation is hard to change, high storage and policy will be put pressure on cotton prices.

The market outlook is still difficult to continue to go up. It is suggested that investors should remain oscillating in the long line, and 19600 near light warehouse short selling pactions.