Recently, professionals analyzed at a cotton spinning conference that under the influence of multiple factors, the cotton spinning industry ushered in a blowout development in October. In the future uncertainty, once the market turns, the market may repeat itself. Shock.
Driven by the rise in raw material prices in October, companies actively replenished their inventories, resulting in tight spot sales. Low inventories and improved sales have led to a rebound in upstream raw materials. In particular, combined with the effects of domestic and foreign holidays, the sales situation of enterprises is improving, and orders are basically scheduled until November. Of course, there is also market analysis. The epidemic abroad has caused a resurgence of orders. In fact, most orders are consumer necessities, and profit margins are limited. The most critical thing is that raw material prices fluctuate significantly, which brings risks to business operations and makes spinning companies afraid to accept long-term orders.
The question now is whether textile companies can continue to receive a large number of orders after the peak consumption season has passed. After all, there are still doubts about this after entering the off-season, especially as the new crown epidemic is still raging. The improvement in third-quarter data now appears is a thing of the past, and the future is still uncertain. As for the transfer of foreign orders to China, this also needs to be viewed with caution. The orders mentioned above are mainly consumer necessities. How long these orders can last in the future is also worthy of attention. Under the premise that the supply is relatively certain, consumption is still full of variables.
China’s cotton market weekly report shows that as international cotton prices fall, high-priced foreign yarn transactions have turned from hot to cold. Downstream gray fabric orders in Guangdong, Jiangsu and Zhejiang have slightly decreased compared with last week, and pure cotton prices have gradually stopped rising. Stable; polyester staple fiber prices fell along with the trend of crude oil and raw material PTA. Therefore, the cotton market is still facing certain pressure in the short term. </p
