With only half a month left before the traditional Spring Festival holiday, the atmosphere in the upstream and downstream textile industries has gradually weakened recently, and cotton shipments from warehouses in various places have also slowed down significantly. Since December, the booming transactions of downstream cotton yarn have brought strong support to cotton consumption. However, with the impact of traditional holidays and domestic and foreign epidemics, the wait-and-see attitude of all parties in the market has gradually increased, and the enthusiasm of industry participants has also gradually declined.
Last week, cotton futures at home and abroad showed a volatile operation trend. The main price of Zheng cotton futures was hovering at 15,000-15,400 yuan/ton, and the main ICE contract was also mostly at 80-82 cents/pound. In the absence of strong factors to push up, futures prices have obviously insufficient motivation to continue to rise, and the willingness of spot companies to raise prices and support prices has also been suppressed. Some spot transactions have once again turned to bargain hunting transactions, and the frequency of shipments from Xinjiang warehouses and inland warehouses There is also a significant decrease in volume.
Dyeing and cloth factories in some areas such as Jiangsu and Zhejiang have shut down one after another, and some textile markets have also begun to take holidays. According to research, most spinning companies currently have orders scheduled until March, but the order volume in the second quarter is obviously insufficient. Some companies in Shandong and Henan reported that regarding the market situation in the second quarter, downstream companies in both domestic and foreign trade were very cautious. Downstream companies did not dare to place orders rashly, and gauze companies did not dare to take orders easily. As a result, they lacked sufficient confidence to purchase raw cotton in the near future. At this stage, the product inventory of yarn mills is not high. Compared with the same period last year, profits and transaction volume are both good. It is expected that the market will be slow before the holiday.
In addition, many cotton-related ginning companies and textile companies in Hebei have shut down, causing Xinjiang cotton shipments to shift to the southern region. Under the situation of weakening demand and loose supply, the enthusiasm of yarn companies to “grab cotton” has decreased, and the pace of stocking has further increased. The slowdown has affected the overall trading atmosphere of the market to a certain extent. Therefore, as the Spring Festival holiday approaches and all parties withdraw from the market one after another, it may be difficult for cotton prices to fluctuate significantly. </p
