From the survey, since mid-October 2020, inquiries and transactions for domestic C50S and above carded and combed yarns have continued to be active. Jiangsu, Some large and medium-sized yarn mills in Zhejiang, Shandong, Henan and other places reported that the production and sales situation of high-count yarns has not only been good for several consecutive months, but also that the profits of yarn mills have improved significantly after the Spring Festival compared with November/December/January. On the one hand, high-count yarn customers are relatively Relatively stable, due to the need for product grade and stability, generally the purchaser will not be easily adjusted; on the other hand, high-count yarns are greatly restricted by technology, equipment, and process levels. Most of the 60S and above cotton yarns and blended yarns are small and medium-sized yarns. It is difficult for factories to receive orders, and the high-count yarn market is relatively narrow, so there is not much room for expansion.
Why have the production and sales of high-count carded and combed yarn continued to boom in recent months? After the investigation, the following points are summarized:
1. As the growth momentum of the global epidemic slows down in the fourth quarter of 2020, developed countries such as Europe, the United States, Japan and South Korea have consumer demand for high-end clothing, brand clothing, etc. Strong rebound. On the one hand, some large and medium-sized textile and garment enterprises in China are actively and proactively taking the initiative to receive high-end foreign trade and domestic sales orders; on the other hand, although major Southeast Asian textile countries such as India, Pakistan, and Bangladesh have emerged from the epidemic swamp since the fourth quarter of 2020, they have resumed work and production as soon as possible. European and American orders are quickly flowing to Southeast Asia. However, for high-end gauze, fabrics, and clothing, Southeast Asian countries are restricted by insufficient technical equipment, personnel levels, industrial supporting facilities, etc., and orders for gauze 60S and above have to be “flowed back” to China (parts of India, Pakistan, Vietnam Enterprises become “brokers” and traders).
2. In 2020/21, not only the planting area and output of long-staple cotton in Xinjiang will “double decrease”, but the supply of American Pima cotton, Egyptian Jiza cotton, etc. Yarn with cotton has an impact. According to reports from several foreign businessmen and large cotton companies, the current prices of SJV Pima cotton and Egyptian long-staple cotton at the port are not only high, but also have low bonded and customs clearance quantities, and even “hard to get a ticket”; cotton planting area in Aksu region in 2020/21 It has dropped significantly from the previous year (the purchase price of long-staple cotton seed cotton in 2019/20 is low, farmers’ income is not ideal, lower than that of fine-staple cotton) and is restricted by factors such as weather and cotton species. The fiber length of long-staple cotton is mainly 35-36 , the proportion of those aged 37 and above decreased significantly. Due to insufficient supply of raw materials and limited options for yarn mills, the production and expansion of high-count yarns of 50S and above cannot be increased quickly.
3. Imported high-count yarns are not only scarce but also have poor quality stability and cannot meet the requirements of cloth factories, clothing companies and downstream customers. Judging from market feedback in Jiangsu, Zhejiang, Guangdong and other places, except for a few Vietnamese and Indian yarn mills that provide C50S and 60S quotations, the leading products of other East Asian countries’ yarn mills are almost all 40S and below carded yarn and open-end spinning; India High-count yarn not only has low output and poor quality stability (the cotton distribution, order arrangement, technology, etc. are not rigorous and change frequently), but the quotation of cotton yarn of 50S and above is even higher than that of domestic yarn, which basically lacks competitiveness.
4. Affected by the COVID-19 epidemic in the first half of 2020, yarn mills not only continued to have low inventories of cotton, polyester staple fiber and other raw materials, but also “processed based on orders to reduce inventory accumulation” (especially High-count cotton spinning mills and intermediaries with large capital flows and limited demand growth have lower stockpiling). With the retaliatory rebound in demand for mid-to-high-end textile and clothing products for export and domestic trade since the fourth quarter of 2020, yarn mills have insufficient production. The phenomenon of sales is highlighted.