According to a survey of cotton spinning mills in Henan, Shandong, Anhui and other places, driven by the continuous upward breakthroughs of Zheng cotton in recent trading days, the relatively smooth production and sales of cotton yarn, and the lack of obvious inventory accumulation, the ex-factory quotations of cotton yarn have been generally raised again. 200-300 yuan/ton (since July, the yarn price of some cotton spinning mills has increased by 500-800 yuan/ton, among which the open-end spinning yarn has a lower increase; while the high-count combed/carded yarn of 60S and above has a larger increase), The price of cotton yarn in the light textile market in coastal areas such as Jiangsu, Zhejiang, Guangdong, Shandong and other coastal areas has been increased simultaneously.
A textile company in Dezhou, Shandong Province said that downstream weaving, fabric and clothing terminals “don’t buy it” when cotton yarn continues to rise, and even customers are resistant, “buy if it rises but don’t buy it” “Fall” situation is relatively rare, mainly due to the fact that although terminals such as gray fabrics, fabrics and clothing are relatively popular in receiving and arranging orders (mainly foreign trade orders), the profits are very low. If you are not careful, you may “lose money and make money”, so for cotton Cotton yarn and other raw materials are very sensitive to rising prices. Once the ex-factory price of cotton yarn increases significantly and quickly, downstream customers are likely to reduce the number of orders they receive or be forced to abandon orders. Spinners mostly contact weaving companies, fabric or garment factories before raising prices. Communication can not only partially resolve the risks caused by the rise in raw materials such as cotton and polyester shorts, but also allow consumer terminals to “bite the pressure and tighten their belts” to accept and digest it.
Judging from the survey, although Zheng cotton has risen by nearly 10% since late June, cotton spot basis sales and point prices have basically increased at the same rate as Zheng cotton (Traders , Xinjiang cotton base gap of ginners has rarely been adjusted), so “fixed price” resources have become the mainstream of recent cotton market transactions. Since the increase in cotton yarn is significantly weaker than that of cotton, the net profit of cotton spinning mills has an obvious trend of “involution”. A yarn mill in Jiangsu reported that since the average net profit of spinning in May/June generally reached 1,500-2,000 yuan/ton, the ability to accept and digest the rise in cotton futures is relatively high; in addition, the product structure of the yarn mill has shifted to medium to high Expenditure adjustment has resulted in low pressure on finished product inventory, so giving back part of the profits to downstream terminals is conducive to the healthy development of the entire industry chain. </p