After a wave of rises, Zheng Cotton’s market has entered a state of shock again, with the center of gravity always surrounding 14,800 yuan/ton. It may be accumulating energy in the short term and is likely to maintain strong shocks in the future.
Based on the above judgment, it is mainly because downstream consumption has improved. We learned from enterprises that yarn production and sales are currently improving, and some textile companies even have no inventory, and orders have been scheduled until the end of December. As orders continue to improve, yarn prices continue to rise. The price of carded 32-count yarn has increased by nearly 1,000 yuan/ton in a week, and downstream fabric mills are also happy to purchase yarns despite rising yarn prices.
At this stage, regardless of raw materials or finished products, the inventories of textile companies remain at low levels. Once orders increase, companies will have no excess inventory to meet customer demand. In the short term, the demand for raw materials will increase significantly due to the large-scale start-up of production, stimulating price increases. It is understood that the increase in yarn this time is different from the past. When prices increased in previous years, downstream fabric mills generally resisted. Although the price increase this time was large, fabric mills continued to purchase, which shows that the performance of downstream orders is very good. , demand has recovered to a certain extent.
With yarn showing good rising momentum, cotton prices have also received strong support. It can be seen from the recent cotton price trend that after a round of rise, Zheng Cotton has entered a narrow range of fluctuations. From the technical graphics Look, after the continuous adjustment, another upward trend is expected.
I learned from spot dealers that lint sales are progressing quickly and spot prices are relatively strong. Some cotton companies had previously conducted pre-sales of cotton, but now they have basically canceled it because they are bullish on the market price. Beijiang purchased and processed earlier, and the sales progress of lint cotton is expected to reach about 60%. With the inventory reduction, the company’s ability to resist risks has been greatly improved, and the quotation is firm, which has also supported cotton prices to some extent. As a result, and the cotton textile industry is entering the peak season, cotton prices are easy to rise but difficult to fall in the short term. </p
