According to feedback from cotton spinning companies in Jiangsu, Henan, Anhui and other places, in the past week or so, the Zheng Cotton CF2109 contract has continued to consolidate and gain momentum within the 15,500-16,000 yuan/ton compartment; coupled with the pressure on cotton yarn accumulation in cotton spinning mills, the On the low side, the production and sales of 21S-40S cotton yarn are relatively smooth (some textile companies report that the supply of C32 and C40S medium and high-end cotton yarn is slightly tight), so the quotation of cotton yarn remains at the level of mid-May. “Let the raw materials be blown by the wind and waves, the cotton yarn will remain unmoved.” .
A medium-sized textile company in Zhengzhou said that since April/May, except for OE yarn and 8S-16S low-count ring spinning orders, there has been little improvement or slight improvement, and 26S-60S Inquiries and orders for carded yarn are relatively satisfactory, and shipments of high-count combed yarn are also picking up compared to February/March. The factory’s strategy is to “purchase high-grade, high-quality cotton and spin 32S and above cotton yarns.” 21S and The output of cotton yarn with the following counts has dropped significantly.
From the survey, some yarn mills currently have orders extended to mid-to-late June, and the prices of raw materials such as cotton, polyester staple fiber, and viscose staple fiber have fluctuated since April/May. Judging from the situation and sales quotations of cotton yarn and polyester-cotton yarn, the net spinning profit of cotton spinning enterprises is at a relatively high level; in addition, the payment recovery and operating capital situation have gradually improved compared with the previous period, so the ability to resist risks and maintain production is strong. A textile company in Jiangsu reported that in recent days, downstream weaving mills, traders and other customers’ inquiries and delivery of goods have slowed down, and market concerns have increased, focusing on the following points:
First, as the epidemic in India, Bangladesh, Pakistan and other countries has gradually come under control, the return orders from Europe, the United States, India and other countries have gradually recovered or lacked sustainability in the production of yarn mills, cloth mills and downstream industrial chains;
Secondly, according to usual practice, the domestic sales market enters the off-season in June and July, and it remains to be seen whether the gauze can achieve “not out of season”;
Thirdly, sea freight has risen sharply. The “hard to get a ticket” space and the serious accumulation of goods in some European and American ports, resulting in increased port demurrage costs, etc. need to be carefully considered, especially when accepting medium and long-term orders, you are worried about the situation of “losing your wife and losing your troops”;
Fourthly, it is still difficult for textile and clothing companies to lock in foreign exchange, increase exchange rate fluctuation clauses in contracts, and sign forward foreign exchange settlement and sales agreements with banks. Once the RMB appreciates sharply, the profits of textile and clothing companies will be swallowed up or even suffer losses. </p