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Spinning machinery sector deluged with orders
24
Jun '10
China's textile industry has shown rapid growth since this year, which was most unexpected by many companies, especially orders received by cotton spinning industry has comprehensively picked up.

This is quickly driving sales of complete sets of cotton spinning machinery and equipment that had been seriously affected in the financial crisis. Many machinery manufacturers have received too many orders to complete in time.

There even appears a state of short supply not seen in recent years. It is reported that most textile machinery manufacturers have received full orders for the first half, while some have orders, which will fully last them till the third quarter.

Vice-President of China Textile Industry Association, Gao Yong believes that the hot sales of cotton yarn and cotton fabrics this year has contributed to market demand, other than which refreshing inventory too has contributed to the spate of orders.

So how long could this hot selling situation last for? Industry analysis points out that it can work out the real incremental demand after discounting demand of refreshing stocks and speculative stocks.

That is; it can reflect normal and real market demand at a time when textile industry holds a certain level of refreshed inventory, inflation expectation of raw materials has been released, and the RMB begins to appreciate.

Most people think that current rapid growth of cotton spinning industry may not continue into the second half.

Fibre2fashion News Desk - China


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