According to feedback from some cotton textile mills in Hubei, Jiangsu and Zhejiang, with the continuous downward breakthrough of Zheng cotton in the first and middle of March and the quotations of domestic yarn and imported cotton in light textile markets such as Guangdong, Jiangsu and Zhejiang, the overall price bottomed out by 500-1,000 yuan/ tons. 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 the RMB. Inquiries and purchases of cotton yarn, polyester-cotton yarn, etc. from weaving factories, fabrics and textile and clothing enterprises are significantly higher than those in January and February. Slow down. 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 relatively 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 of Sino-US relations and the mutation of the new crown in Europe The virus has rekindled and lockdowns have been restarted in many places. Therefore, there are no short-term plans to expand the replenishment of cotton, polyester staple fiber and other raw materials. It is expected that the next round of cotton procurement will be postponed to at least mid-April.
Judging from the survey, as the prices of upstream raw materials such as cotton and cotton yarn plunge, the pressure for a short-term rebound increases. In addition, terminal inquiries and purchases continue to slow down. Recently, some cotton spinning Factories report that more and more cloth mills and fabric companies are asking spinners to postpone shipments and postpone contracts. Some customers hope that spinners will fulfill the contract according to the cotton yarn price adjusted in mid-March or pick up the goods on credit and pay for 1-3 months. Payment methods such as installments and other methods have gradually increased. Spinners’ concerns about defaults by downstream customers have gradually intensified, and the market sentiment has been 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 They have actively contacted traders and weaving mills, and once there is a real order, the profit margin of the spinning mill will be relatively large. On the one hand, based on the current cotton spot price, the profit of the spinning mill is still relatively high (if there are 2-3 months of raw material inventory, The yarn mills have basically achieved the goal of “not opening for three years, but opening for three years”), and have greater confidence in preferential treatment; on the other hand, textile enterprises 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 and the epidemic returns, Uncertain factors such as the central bank’s monetary policy change or the emergence of uncertainties such as yarn mills competing to ship goods and withdraw funds have caused a stampede. </p
