At present, the yarn market in Hebei is generally pessimistic, especially near the end of the year. Most manufacturers are trying to withdraw funds and destock stocks, and the quotations of conventional yarns from small and medium-sized enterprises are chaotic.
Due to the large inventory of pure cotton yarns before the year, towards the end of the year, the yarn inventories of small and medium-sized textile factories in Shijiazhuang, Tangshan and other places continued to grow. On December 5, the person in charge of a factory in Shijiazhuang said that the yarn inventory in their factory had increased to 17 days, and most of them were conventional yarns of 32S and below. If this trend continues, the company will not be able to pay workers’ wages.
Hebei Province is dominated by small and medium-sized textile factories. The environmental protection situation this winter has become more severe. Downstream printing and dyeing, gray cloth, and fabric companies have taken holidays early or extended their holidays, which has put greater pressure on yarn sales. Conventional yarn The impact was greater. In Hebei Province, the output of open-end spinning 12S and 16S, carded yarn 21S and 32S, and combed ring spinning 21S and 32S is relatively large, so the homogeneous competition between enterprises is also extremely fierce.
Take a factory in Shijiazhuang as an example. As of December 5, the price of OE12S at this factory was 13,300 yuan/ton, and the price of OE16S was 13,600 yuan/ton, the same as yesterday. Since the second half of this year, open-end spinning prices have continued to fall, with a cumulative drop of 80 yuan/ton since December 1. The quotations of carded 21S and 32S are 19,300 yuan/ton and 20,300 yuan/ton respectively. Recently, the prices have been stable with some decline. Since December 1, they have fallen by about 100 yuan/ton cumulatively. The trend of combed 21S and 32S since November has been first rising and then falling. Like boiling a frog in warm water, manufacturers’ profits have been squeezed in this slow decline.
Affected by the continuous fall in the market, the profits of spinning mills have been greatly squeezed. In previous years, the profit of spinning yarn was generally more than 1,000 yuan/ton. It would be lucky to reach 300-400 yuan/ton this year. Falling prices, reduced orders, and rising inventories were the biggest problems faced by Hebei yarn mills last year. In particular, the factories had to pay workers’ wages, bonuses, water and electricity and other expenses, so it has become a top priority to withdraw funds.
In this context, many companies have been destocking at a loss, resulting in recent chaos in yarn quotations. For example, due to factors such as different processes and different proportions of conventional yarns, the quotations of yarns of the same count vary greatly. As of the 5th, the price of carded 32S from a factory in Tangshan, Hebei is 20,350 yuan/ton, but the price from a factory in Gaoyang is only 20,100 yuan/ton. The price confusion among other specialty yarns, polyester-cotton yarn, and rayon yarn is even more obvious. Polyester-cotton yarn in Hebei is 65/35 The quotation of 32s is in the range of 15,500-16,100 yuan/ton; the quotation of 30S rayon yarn is in the range of 13,900-14,400 yuan/ton.
Generally speaking, the yarn market in Hebei Province is still weak. Especially as the end of the year approaches, companies are encountering various reminders and are eager to destock. In the near future, yarn may be easy to fall but difficult to rise. </p
