Since the beginning of this year, affected by unfavorable situations such as the COVID-19 epidemic and Sino-US relations, the cotton market spot price has been fluctuating, but the cotton yarn market has failed to move with the market. This is undoubtedly a huge practical and psychological pressure for textile operators who are still rushing to keep their machines running, their companies afloat, and their employees fed despite the fatigue.
According to the understanding of some yarn mills with a scale of 20,000 to 50,000 spindles in Yancheng, Jiangsu, under the frequently changing cotton market, the price of cotton yarn, especially carded yarn, has remained unchanged. In mid-to-late July, the average ex-factory price of carded 32S from local textile companies was around 18,500 yuan/ton, and even if there was any adjustment, the range was very small. At this price, the company will have limited profits after excluding cotton costs, labor costs, etc. The market and sales of high-count yarns have also been sluggish. Textile companies of various sizes are insisting on selling at the same price and making sales based on sales. Raw materials and product inventories have been kept to a minimum.
At this stage, the recovery of domestic textile sales and the temporary improvement caused by the transfer of some foreign trade to domestic sales are neither the essence of the market nor can it continue like this for a long time. Many small and medium-sized enterprises have reported that the recent order situation has been more difficult than in the first half of the year. Industry analysts believe that due to the increasing share of domestic sales, foreign trade restrictions and the unpredictability of future changes in Sino-US diplomacy and economic and trade frictions, there are many unknowns in the operation of the textile industry, and the current and future weakness of the textile industry will be reflected and developed.
After entering the second half of the year, the production and operation situation of some large-scale textile enterprises is not ideal due to the closure of downstream foreign trade markets and the sluggish high-end consumption. In the mid-to-low-end textile and clothing manufacturing sector, in addition to the production and sales of protective textile products for medical and health needs, such as surgical gowns, protective clothing, masks, etc., the production and sales of yarn products in other industries, such as clothing, bedding, toys, etc. Due to downstream obstruction and poor sales, production has been reduced, the start-up rate is low, shipments have slowed down, and the consumer economy is sluggish, making it difficult for upstream production to increase volume, and there is no room for price increases.
From a long-term perspective of development, economic development determines social consumption. Consumption in markets such as textiles and clothing is sluggish, which makes it difficult for cotton prices to rise and cotton yarn to sell. This is a normal market supply and demand relationship. What we can do The goal is still to improve product quality and reduce production costs, hoping that the epidemic and friction will pass soon. </p
