Recently, data released by the General Administration of Customs showed that my country’s textile and clothing exports in June were US$29.03 billion, a year-on-year increase of 17.8%; of which textile exports were US$16.16 billion, a year-on-year increase of 56.7%, and a month-on-month decrease of 21.8%; clothing and clothing accessories Export volume was US$12.87 billion, a year-on-year decrease of 10.2% and a month-on-month increase of 44.6%. Among them, textiles are still driven by protective products to support exports. Although the exports of clothing and clothing are not ideal year-on-year, they have increased month-on-month, reflecting that foreign trade demand is still slowly recovering. Affected by the long cotton spinning industry chain and unfavorable downstream consumption, which has resulted in slow industrial recovery, midstream and upstream companies are still facing many difficulties in their operations.
According to a survey of the operating conditions of some textile companies, there was indeed a short-term order boom in May, and sales of their gauze products also increased rapidly. Judging from the source of orders, they were mainly domestic orders. . However, this “craze” did not last long. Starting from mid-to-late June, the pace of order acceptance gradually slowed down. As inventories of gray fabrics and cotton yarns rise again, corporate profit-sharing promotions are once again on the agenda. Especially starting from this week, seeing that Zheng cotton futures have insufficient upward momentum, yarn companies, lacking both order support and cost promotion, have increased their price reductions and the scope of price reductions has also expanded. In less than a week, the price of some yarn varieties has been reduced by about 500 yuan/ton, and enterprises have a strong awareness of destocking to preserve funds.
Midstream textile companies are under great operating pressure, and the situation is the same for upstream cotton companies. Cotton-related production companies and traders have reported that basis prices were relatively active from May to June. After the recent rise in futures prices, there have been fewer and fewer inquiries. On the one hand, negative factors in the market still exist, and industry players are worried that there is still a possibility of a correction in Zheng cotton; on the other hand, under the poor profitability of all aspects of the market, buyers have a strong “leaking out” mentality, and it is basically difficult to sell non-special cotton.
With the operations of all parties in the market facing multiple pressures, whether in textile companies or cotton trading companies, some operators have flexibly adjusted their business methods, either from foreign trade to domestic sales, or from general textiles to medical protective products. , or survive through various methods such as unilateral spot purchase and sale, rollover, cash hedging and arbitrage. Whether there will be a change in the market during the Golden Nine and Silver Ten years, industry players are both ready for the challenge and full of good expectations. </p
