Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News What is most lacking in the cotton spinning market?

What is most lacking in the cotton spinning market?



Zheng Cotton’s contracts opened sharply lower again today after falling to the limit yesterday. With global trade, exchanges, and the economy suffering a major impact, both ICE and Zheng Cotton are like s…

Zheng Cotton’s contracts opened sharply lower again today after falling to the limit yesterday. With global trade, exchanges, and the economy suffering a major impact, both ICE and Zheng Cotton are like small boats, and their direction is no longer in the hands of fundamentals. Here, I can only go with the flow.

Although ICE’s main contract has fallen below the 10-year low of 54.53 cents/pound (the intraday low of 53.64 cents/pound), and Zheng Cotton CF2005 has also fallen below 11,000 yuan/ton, from the Judging from cotton companies, investors and market sentiment, it seems that it is still too early to say anything. Some believe that what is currently lacking most in the market is confidence, some believe that what is currently lacking most is funding and policy support, and some believe that easing logistics and transportation is a top priority. The author’s views are as follows:

First, what cotton spinning enterprises lack most is orders. Judging from the survey, with the global outbreak of the new crown epidemic in February (the Middle East, Europe, the United States and Southeast Asia have successively fallen), my country’s foreign trade exports and short- and medium-term orders have rapidly shrunk or even stopped. In addition, some domestic orders have actually fallen sharply. Therefore, a large number of domestic spinning, weaving, and garment enterprises are facing pressure to reduce or suspend production after just resuming work and production. The inventory of terminal finished products is rising and customers are disappearing in large areas. Orders are the key to the survival of enterprises.

Second, what cotton spinning companies lack is “goals” and scientific judgment on the end of the new coronavirus epidemic. The epidemic is currently raging in Asia, Europe and the Americas, making it difficult for textile and apparel companies to arrange production and order plans. Textile and clothing companies in Guangdong, Jiangsu, Zhejiang, Shandong and other places have reported that spring clothing in 2020 has a large inventory due to the epidemic, logistics and market closures. Some manufacturers’ sales volume is less than 20% of the plan, occupying a large amount of funds. The biggest variable at present is the autumn and winter orders. Domestic and foreign trade orders are like “hot potatoes” (generally the cycle is slightly longer, the quantity and amount are larger), and after receiving the order, there is a worry that the buyer will cancel the order due to the epidemic before it is over, resulting in a large backlog of products. Enterprises face the risk of bankruptcy, otherwise they may fall into the dilemma of shutdown and production stoppage from April to May. </p

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Author: clsrich

 
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