According to feedback from some cotton textile enterprises in Jiangsu, Shandong and other places, since mid-March, in addition to the production and sales of high-count carded and combed yarns of 50S and above, the sales of ring spinning and air-end spinning yarns of 40S and above have remained relatively smooth. It has slowed down significantly compared with January and February. The wait-and-see atmosphere of consumer terminals such as cloth factories, fabrics and clothing is strong, and the phenomenon of overstocking is becoming more and more prominent. Whether it is the light textile markets in coastal areas or the yarn quotations of yarns from India, Pakistan, Vietnam and other ports, There has been a correction in all cases, and the confidence of the downstream industry chain has been shaken.
A medium-sized yarn mill in Zibo, Shandong Province said that although the quotations of carded yarn and 40S combed yarn have been reduced by 1,000-1,200 yuan/ton compared with mid-to-late February, the prices of high-end 50S and above The yarn quotation has been reduced by 1,500 yuan/ton or more, but it is difficult to stop the weak purchase momentum of customers’ inquiries and purchases of cotton yarn with a count of 40S and below. On the one hand, traders in the light textile market in Guangdong, Jiangsu, Zhejiang, Shandong and other places not only lower prices significantly, but also purchase “small quantities, multiple batches, and high requirements”. On the other hand, with the CF2105 high platform diving, the spot price of cotton and cotton yarn Prices have continued to fall, and the execution of contracts by cloth factories and textile and clothing companies that signed orders at high prices in January and February has slowed down, and some customers have even asked for delayed delivery or delivery on credit. The company said that before mid-April, it will still focus on completing early orders. In order not to reduce production, not lay off employees, and maintain employment, it will consider appropriately increasing a part of the stock of C26-C40S conventional carded yarn. High-count yarns of 60S and above will adopt the “as soon as there is an order.” “Receive, stop if there are no orders” measures to reduce the pressure on working capital.
With the CF2105 contract returning to 15,000-15,500 yuan/ton consolidation, some cotton textile companies believe that the cotton yarn and gray fabric prices are not far from bottoming out. The current “negative decline” is mainly due to The price and confidence “overdraft” caused by the sharp rise and fall of cotton futures in February and March will take time to repair the industrial chain.
Market participants believe that the current bullish factors still exist. First, although the high-level meeting between China and the United States was tense and non-compliance, the statements at the press conference after the meeting showed that Sino-US relations are not at all stable. The situation has not continued to deteriorate, and both sides are exploring each other’s bottom line; secondly, as vaccines are administered globally and the epidemic situation in Europe and the United States continues to improve, the economy, trade, transportation, etc. are struggling to recover, and the “darkest moment” of textile and apparel consumer demand has passed; thirdly, It is the Fed’s continuation of ultra-loose monetary policy that aggravates global inflationary pressure; fourth, the central bank’s monetary policy is not a turn, but a phased tightening, with a high probability of releasing liquidity in March and April. </p