According to feedback from cotton textile companies in Hubei, Anhui, Jiangsu and other places, the phenomenon of production restrictions and suspensions by downstream weaving and garment factories since early July has not shown signs of improvement. Small and medium-sized weaving factories in coastal areas have reduced production by 30%. There are many companies with more than %, and inventories of raw materials such as yarn, gray cloth, and fabrics continue to decline.
A textile company in Jiangsu said that the company is currently in a difficult situation where “raw materials are at the top and terminals are at the bottom”. As the market price of Zheng cotton CF2009 contract has reached the 11,500 yuan/ton, 11,800 yuan/ton, and 12,000 yuan/ton mark recently, the cotton spot price has risen rapidly regardless of the basis quotation or the fixed price, and the raw material cost pressure of cotton spinning mills has increased sharply. Moreover, due to the “finalization” of domestic sales orders from July to August, the recovery progress of foreign trade exports is only 30-40%. Therefore, there is insufficient motivation for cotton yarn inquiries and transactions. In order to speed up destocking and reduce the cash flow pressure of enterprises, some yarn mills and traders We have to adopt the strategy of “lowering prices in exchange for volume”.
Judging from the survey, from July 6 to July 7, the quotation price of Grade 31 “Double 28” Xinjiang machine-picked cotton in warehouses in Henan, Hubei, Shandong and other places in the Mainland was about 12050-12150 yuan/ton (out of the warehouse The fee is borne by the seller, the same below); the price of grade 31 “Double 29” Xinjiang cotton machine-picked cotton is 12,200-12,300 yuan/ton, which is nearly 1,000 yuan/ton higher than the price of the traded Xinjiang cotton reserve cotton at a discount of 3,128 yuan.
The person in charge of a 60,000-spindle yarn mill in Tai’an believes that the leading products of most domestic yarn mills are C21-C40S yarn and OE yarn. Carded and combed yarns of 40S and above are basically produced on demand. Inventory is reduced as much as possible, so there are fewer inquiries about high-quality, high-water Xinjiang cotton such as grade 21 or grade 11 “double 29/double 30”.
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