According to feedback from several cotton textile companies in Shandong, Henan, Hebei and other places, the new crown epidemic was effectively prevented and controlled during the Spring Festival. The epidemic growth in Europe and the United States and other countries has reached an inflection point. Vaccination in the United States has also accelerated across the board. During the Spring Festival, crude oil, energy, metals and Commodities such as ICE cotton have risen sharply, and textile companies have shortened their holidays and informed employees to return to factories and resume work as soon as possible.
A medium-sized yarn mill in Baoding, Hebei said that there were still some orders for carded yarn and combed yarn that had not been completed before the Spring Festival. Due to concerns about epidemic prevention and control, some employees inside and outside the provincial market were unable to return to their hometowns. In early February, they shut down production by process and went on holiday. Therefore, the willingness to return to the factory early to resume work after the holiday is relatively strong. In addition, cotton yarn ordering and production in January are all based on contracts. There is almost no inventory of C32, C40, and C50S cotton yarns. Considering that the peak season for textiles, clothing, and domestic and foreign trade is coming, companies have plans to accumulate a small amount of inventory. As the main contract of ICE exceeded 90 cents/pound during the Spring Festival, the CF2105 contract of Zheng Cotton jumped higher after the holiday on February 18 and broke through 16,000 yuan/ton. Some downstream cloth factories, fabric factories and clothing companies are worried about the yarn mills. Delayed delivery or even breach of contract, urgently urge the cotton mills to rush work.
Judging from the survey, cotton spinning mills are expected to continue to raise cotton yarn quotations after the Spring Festival (a few mills have quoted ex-factory prices of 300-400 yuan/ton before the Spring Festival), especially for high-quality package-bleached C40S-C60S carded yarn. and high count combed yarn. In the first and mid-February, cotton futures prices at home and abroad were “rising” thunderously, and the cost of cotton yarn continued to rise. In the past month or so, the supply of high-quality and high-grade Xinjiang cotton in 2020/21 has been tight in mainland China (the road shipment volume of Xinjiang cotton has plummeted since mid-January, and the pressure on railway transportation has doubled), and the price difference between cotton prices inside and outside Xinjiang has widened to 500-700 yuan. /Ton. From the perspective of the market environment, the central bank has continued to loosen money since 2020, cotton spinning companies have sufficient cash flow, and the inventory of finished products such as gauze is low. Therefore, cotton mills have a high willingness to “raise prices” and push prices up.
In addition, market participants believe that domestic and foreign sales orders for cotton textiles, clothing, etc. are expected to continue to recover or even boom in the first and second quarters of 2021. Coupled with the downgrade of epidemic prevention and control levels in various countries around the world, the global economy, trade, transportation, etc. are accelerating. , Sino-US relations are gradually improving and other factors, so the textile and clothing market can be expected. </p
