According to feedback from some downstream customers and cotton traders, cotton yarn has continued to show a downward trend in volume and price since late July. Not only small yarn mills and small weaving mills have encountered great difficulties in destocking finished products, but some large and medium-sized yarn mills have also encountered difficulties in destocking finished products. Inventories of high-count carded yarn and high-count combed yarn also increased moderately.
A large textile company in Taizhou, Jiangsu Province said that currently, except for special yarns and organic cotton yarns that have some profits, conventional carded and combed yarns are almost 100% unprofitable or even losing money; in the past month or so, terminal weaving, Cotton yarn consumption in clothing and other enterprises has been significantly downgraded, and sales of high-end and fine yarns have continued to decline.
Textile and cotton companies in Shandong, Hebei, Henan and other places have judged that as of the end of July, the reduction and shutdown ratio of yarn mills with 30,000 spindles and below may reach 30-35%; even for those with more than 50,000 spindles The operating rate of large and medium-sized yarn mills is only 60-70%, and it is difficult to resume work and production. On the one hand, not only have orders for high-count carded and combed yarns above 40S been relatively scarce recently, but the consumer demand for OE yarns and ring-spun yarns of 16S and below has oscillated back, and there are few hot-selling varieties in the entire cotton yarn and gray fabric market; on the other hand, due to From July to August, domestic sales orders were in a period of slack, and foreign trade exports were still dominated by “short orders, small orders, and no-profit orders.” Therefore, large factories are not yet able to operate at full capacity, and there are only a few orders for outsourced processing of gauze. Cloth factory orders are sporadic, and the smoothness of raw material procurement, production arrangements, sales payment collection, etc. are limited. Choosing to reduce and suspend production is not only a way to avoid risks, but also a helpless choice for labor-intensive industries.
A textile company in Jiaozuo, Henan said that in recent days, customers from Foshan, Zhongshan and other places in Guangdong have been slightly more active in making inquiries and requesting goods for C26S high-end and C40S high-end packaged bleached yarn (mainly for export orders to Europe and the United States). However, the quotation is low. Based on the cotton mix of 2019/20 Xinjiang cotton + real estate cotton, 2019/20 Xinjiang cotton + reserve cotton, port customs clearance foreign cotton (Brazilian cotton, US cotton) + reserve cotton, spinning profits have been compressed , the company chose to give up after repeated weighing.
Mainland cotton textile enterprises reported that due to the recent increase in confirmed cases of new coronavirus pneumonia in Xinjiang, Xinjiang cotton road transportation and railway shipments have been affected to varying degrees (Aksu, Kashgar and other regulatory warehouses have suspended road shipments); in addition The market price of Shangzheng cotton CF2009 contract has exceeded 12,000 yuan/ton. Therefore, textile companies and middlemen are paying attention to Xinjiang cotton in the mainland warehouse, and the price points are more active than in early and mid-July. Some traders have raised the basis of cotton resources in the mainland warehouse by 100-200 yuan. Yuan/ton; while resources in Xinjiang are subject to inquiries, transactions are deserted, and even prices are not available; the pressure on ginners and cotton traders in Xinjiang has increased with the spread of the epidemic and the escalation of prevention and control. </p
