According to feedback from traders in the light textile market in Guangdong, Jiangsu and Zhejiang and other places, in mid-to-late February, weaving factories, garment factories and other terminals gradually picked up the purchasing power of cotton yarn, gray cloth, and fabrics. Cotton (and polyester staple fiber, viscose staple fiber , spandex, etc.), cotton yarn, and blended yarn, the cost pressure caused by the sharp increase is transmitted to all downstream links.
An import and export company in Jiangsu said that the prices of raw materials and yarns soared after the Spring Festival, which caught the company off guard. However, if the company significantly increases the prices of fabrics and textile products, it will lead to the loss of some customers; otherwise, the company’s profits will be reduced. Significant compression or even losses, so we can only repeatedly negotiate with downstream textile and clothing, foreign trade companies, and brand buyers, hoping that each link can bear part of the pressure of rising prices of raw materials and gauze.
Judging from the survey, after the Spring Festival, the resumption rate of cotton textile enterprises in Shandong, Jiangsu, Zhejiang, Guangdong, Henan and other places is very high. In addition to completing early orders, enterprises began to accept short-term domestic sales and foreign trade from March to April. one. On the one hand, textile and clothing companies are worried that raw materials such as cotton and polyester staple fiber will continue to fluctuate violently, which will lead to significant adjustments in the costs of cotton yarn, polyester-cotton yarn and gray fabrics, and will have a great impact on production, order scheduling, and profits; on the other hand, most cotton textile companies Gauze inventories are still at a relatively low level. With expectations of a rebound in global economy, trade, and textile and apparel consumption in 2021, textile companies have plans to appropriately increase cotton yarn and gray fabric inventories.
In the past two days, small and medium-sized cotton spinning mills in Hubei, Henan and other places said that with the CF2105 contract price of Zheng cotton falling from 17,000 yuan/ton to 16,000 yuan/ton, weaving mills and middle schools in coastal areas such as Guangdong, Jiangsu and Zhejiang Business sentiment towards inquiry and purchase of cotton yarn and polyester-cotton yarn has declined. Some customers buy as they go, and the price reduction range has expanded from 100-200 yuan/ton in the early stage to 400-500 yuan/ton. The price reduction is even greater for high-count carded and combed yarns. </p