According to feedback from cotton textile enterprises in Shandong, Jiangsu, Zhejiang, Henan and other places, inquiries and transactions of cotton yarns with counts of C60S and above have remained active in the past week. The shipments of cotton yarns with counts of C40S and below have slowed down compared with mid-December. Downstream weaving has The wait-and-see mood of cloth, fabric, clothing companies and consumer terminals is gradually warming up.
The quotations of OE yarn, carded yarn and combed yarn have been slightly increased again recently. On the one hand, they are affected by the price of Zheng Cotton CF2105 contract approaching 15,500 yuan/ton (spot basis quotation and fixed price have continued to rise accordingly), and on the other hand, On the one hand, most textile and clothing companies have been implementing the strategy of “buying raw materials as they are used” and “destocking products” in the second half of 2020, and their capital flow is relatively sufficient. Therefore, whenever futures prices fluctuate, cotton textile companies and traders will immediately make adjustments.
It is understood that during the New Year’s Day, most small and medium-sized yarn mills and fabric factories in Jiangsu, Henan and other places did not take a holiday, but worked overtime to complete orders received from October to December. First, there are concerns about the resurgence of the COVID-19 epidemic in the first half of 2021. Before the Spring Festival, downstream enterprises, light textile market merchants and traders in Guangdong, Jiangsu, Zhejiang, Fujian and other places are more enthusiastic about stocking up yarn and cloth in an appropriate amount; second, considering the uncertainty of the epidemic, Certainty, some small and medium-sized yarn mills plan to deliver goods and collect payment before the end of January to avoid risks as much as possible; thirdly, the quotation of cotton yarn has been continuously increased recently (the increase has exceeded cotton in stages). Not only the profits of high-count yarns of 50S and above are good, but also OE The profits of ring spinning yarns of grade and below 40S have also improved significantly, so the enthusiasm of yarn mills to take production orders has increased; fourthly, since mid-December, the quotations of imported cotton yarns from India, Pakistan, Vietnam and other countries have been raised repeatedly, and the price difference between domestic and foreign cotton yarns has been from 800-1,000 yuan/ The price per ton has narrowed to 400-600 yuan/ton. Some weaving companies and garment factories in coastal areas have changed their purchasing direction and are more enthusiastic about making inquiries and purchasing domestic cotton yarn. Two yarn mills with less than 50,000 spindles in Henan and Hubei said that although they worked overtime on New Year’s Day to catch up on orders, orders after late January were not sustainable, and the “haze” of the COVID-19 epidemic persisted, so they planned to take an early holiday during the Spring Festival. </p
