According to feedback from some cotton textile mills in Hubei, Jiangsu, Zhejiang and other places, with the continuous downward breakthrough of Zheng cotton in the first and middle of March and the overall quotation of domestic yarn and imported yarn in Guangdong, Jiangsu, Zhejiang and other light textile markets bottomed out and fell by 500 -1,000 yuan/ton. In addition, it is more difficult for clothing and foreign trade companies to receive new orders due to the sharp increase in raw materials and fluctuations in RMB. Inquiries and purchases of cotton yarn, polyester-cotton yarn, etc. from weaving factories, fabrics, and textile and clothing enterprises are higher than 1 /February slowed down significantly. A few large and medium-sized enterprises are trying to raise prices or offer relatively low profit margins because gauze stocks are still low, capital flow is sufficient, spinning profits are high, and orders can be arranged until May or June.
A yarn mill in Wuhan, Hubei Province said that due to the small number of orders after mid-April and the continuous slight rebound in gauze inventory; coupled with the difficulty of short-term improvement in Sino-US relations and the resurgence of the new coronavirus variant in Europe, Due to the epidemic situation and the resumption of blockades in many places, there are no plans to expand the replenishment of cotton, polyester staple fiber and other raw materials in the short term. It is expected that the next round of cotton procurement will be postponed to at least mid-April.
From the survey, as the prices of upstream raw materials such as cotton and cotton yarn plunge, the short-term rebound pressure increases, coupled with the continued terminal inquiries and procurement Slowing down, some cotton spinning mills have recently reported that cloth mills, fabric mills, etc. are increasingly requiring spinners to postpone shipments and delay the execution of contracts. Some customers hope that spinners will perform the contract according to the cotton yarn price adjusted in mid-March or pick up goods on credit. 1 -3-month payment terms and other payment methods. Spinners are increasingly worried about defaults by downstream customers, and the market sentiment is somewhat stable.
A middleman in Shaoxing Textile City, Zhejiang Province said that in the past week or so, unlike in February where quotations were frequently raised and stocks were held for sale, cotton spinning mills in Henan, Shandong, Jiangsu and other places have taken the initiative to contact traders, Weaving mills, and once there are actual orders, the profit margin of the spinning mills will also be larger. On the one hand, based on the current cotton spot price, the profits of the spinning mills are still relatively high (if there are 2-3 months of raw material inventory, the spinning mills will basically achieve the “three If it does not open for one year, it will take three years for it to open), they have greater confidence in preferential treatment; on the other hand, textile companies are worried that gauze will gradually accumulate stockpiles, which will not only occupy a large amount of funds, but also once the external environment changes, the epidemic comes back, or the central bank’s monetary policy changes, etc. Certain factors emerged, and yarn mills competed to ship goods and withdraw funds, resulting in a stampede.
A yarn mill in Zibo, Shandong Province said that the current trading volume in the textile and clothing terminals and light textile market is weak, and the pressure of falling prices has been transmitted to cotton spinning mills. Most of the yarn mills have adopted “step-by-step and exploratory” price adjustments. (The single price of carded yarn fell by 200-300 yuan/ton), unlike traders in the light textile market in coastal areas who adjusted prices in one step. Judging from the survey, cotton yarn and blended yarn inventories of some small and medium-sized yarn mills continued to rebound slightly in March. Among them, inquiries and transactions for high-count yarns above C50S were still significantly better than low-count yarns and open-end yarns. A few yarn mills have adjusted their product mix. , plans to increase yarn production of 40S and above.
Several textile companies in Henan, Hubei and other places reported that before late April, they mainly completed pre-sale orders before and after the Spring Festival, and additional supplies were available in the short term. The quantity of cotton yarn and blended yarn sold is not large. In addition, ICE and Zheng cotton have fluctuated significantly in recent days, and the direction is unclear. The external quotation of cotton yarn is not active.
A company in Nanyang, Henan Province said that the “roller coaster” market situation of Zheng Cotton has a great impact on yarn mills. Yarn price adjustment is an art. If the reduction is early or the single amplitude is relatively large, the price will be adjusted from January to February. Incoming orders will face implementation difficulties; if the reduction is delayed, it will affect the receipt of orders in the second and third quarters of 2021.
Recently, the China Cotton Textile Industry Association conducted a survey to understand the market operation of the cotton textile industry cluster. The overall production of the surveyed cluster enterprises has slowed down compared with the previous period.
Spinning Cluster
According to the pure cotton yarn cluster enterprises, cotton prices have gradually stabilized recently, and cotton yarn prices have fallen slightly; enterprise production and sales are basically balanced. The profit margin is limited, and most of them are operating at capital preservation or low profit; the demand in the downstream market is weak, and there are not many new orders. It is expected that the price of cotton yarn will not drop significantly in the short term, and the wait-and-see sentiment in the market is increasing.
According to the reports of viscose yarn cluster enterprises, the price of viscose staple fiber has been relatively stable recently, the price of viscose yarn is stable and weak, and the willingness of enterprises to purchase is not strong, so they want to buy as they go. Mainly; research on the overall purchase and sales of viscose yarn market has slowed down, and companies are more cautious about the later market.
According to colored spinning cluster enterprises, the recent decline in raw material prices has led to low market sentiment, and downstream enterprises are less willing to place orders. The current production of enterprises is basically stable, with previous orders of Mainly, there are relatively few follow-up orders; companies are cautious about future market development.
Weaving cluster
According to the white gray cloth cluster enterprises, the price of raw yarn has dropped compared with the previous period, and enterprises have reduced stocking. Fabric prices followed the decline slightly, and the market’s wait-and-see mood increased; the current startup of enterprises is basically stable, new orders are decreasing, and orders are expected to continue to weaken in the future.
According to reports from yarn-dyed fabric cluster enterprises, the price of raw material yarn-dyed yarn has weakened recently, and enterprises have reduced raw material inventories and focused on buying as they are used; the overall marketPurchases and sales have turned sluggish, the number of new orders is less than expected, and the export situation has not changed significantly from the previous period. At present, corporate production is basically stable, and there is a strong wait-and-see sentiment about the market outlook.
According to denim cluster enterprises, the price of indigo dye has increased sharply recently, while the price of denim yarn has dropped slightly and is still at a high level. Downstream enterprises are more cautious in placing orders; the current production of enterprises is basically normal. The later market development depends on the price trend of dyes and denim yarn. </p
