According to recent surveys of several cotton textile companies in Shandong, Jiangsu, Zhejiang, Henan and other places, the quotations of cotton yarn, polyester-cotton yarn, cotton viscose yarn, etc. have all increased. The higher the yarn count, the higher the cotton grade, and the higher the demand. The more active cotton yarn is, the greater the increase will be.
Two textile enterprises above designated size in Zhengzhou, Henan and Tai’an, Shandong, said that since late August, the quotations of OE8S-OE16S yarn have been increased by 100-200 yuan/ton, and the quotations of C21S-C40S cotton yarn have been increased by 300 yuan/ton, and the quotations of 40S and above have been increased by 300 yuan/ton. The price of high-quality packaged bleached carded and combed yarn has been increased by 500 yuan/ton. Although downstream weaving factories and garment factories are not strong in digestion, they will be boosted by the recovery of domestic sales orders and the phased release of foreign trade consumption in the short term during the “Golden Nine and Silver Ten” period. Under this situation, the increase in cotton yarn has little impact on sales and shipments (recently, weaving companies in Jiangsu, Zhejiang, Guangdong and other places have gradually increased their demand for C40S cotton yarn).
Industry analysis shows that there are three main reasons for the increase in cotton yarn quotations: First, the main contract of Zheng Cotton continued to rise in late August, and the cotton spot basis quotation and fixed price rose sharply; second, the recent Affected by the main contract of ICE in the external market exceeding 66 cents/pound and the continuous increase of CCI bidding floor price, the quotations of Vietnamese yarn and Indian and Pakistani yarn “rised”; thirdly, my country has won the “war against the epidemic”, and the domestic market has received orders for the spring and summer of 2021. are coming one after another, coupled with the accelerated improvement in textile and clothing exports to Europe, the United States, ASEAN, and the “Belt and Road” countries, the downstream affordability of cotton yarn and gray fabric prices has increased. According to customs statistics, my country’s textile and clothing exports in August 2020 were US$30.93 billion, an increase of 23.2%; of which textile exports were US$14.72 billion, an increase of 48.5%, and clothing exports were US$16.21 billion, an increase of 6.6%.
Judging from the feedback from cotton textile and clothing enterprises, the entire industry will still face many difficulties in the second half of 2020. Small and medium-sized enterprises are still not optimistic or even pessimistic, and the phenomenon of production reduction and shutdown has not improved significantly. First, the U.S. Treasury Department will impose sanctions on the Xinjiang Production and Construction Corps next month. Global fashion retailers and buyers are racing to track the source of cotton before the September 30 deadline and require their suppliers not to use cotton, yarn or textiles from Xinjiang. The impact on the export orders of Chinese companies is difficult to estimate; Secondly, the quality of textile and clothing orders for the “Golden Nine and Silver Ten” orders is insufficient. A large number of enterprises below designated size said that orders can only be supported until mid-October. The industry is worried that after short-term demand and orders are released, terminals will tighten and decline again; thirdly, funds in the entire cotton textile industry are tight, and some small businesses are even at risk of breaking at any time. It is understood that from the sales of cotton yarn, gray fabrics and clothing, the phenomenon of 1-3 month account period is the mainstream. Without credit or accepting the account period, it is almost difficult to sell and ship goods. Once there is a problem with the withdrawal of funds or the stock of gauze is over It can only be solved by reducing production or even temporarily suspending production. </p
