As textile factories in various places gradually resume production, some areas are experiencing saturation and order shortages.
The person in charge of a textile company in Tiemenguan area of Xinjiang said that the company is currently operating normally, with an operating rate of 100%, cotton inventory for about one and a half months, and no cotton yarn inventory. Orders will remain until the end of February, mainly in Jiangsu, Zhejiang, and Guangdong. As old orders are about to be consumed and there are no new orders, business operating pressure has increased. It is understood that the company has had no new orders since late January. Up to now, the company’s combed 32S price is 25,500 yuan/ton and 40S price is 26,500 yuan/ton.
After the Spring Festival holiday, Zheng cotton saw a wave of rising prices, which greatly boosted the confidence of textile mills. Most companies resumed work and production ahead of schedule, and the operating rate basically remained at 90-100 %. However, in the past two weeks, Zheng cotton prices have fluctuated and fallen, which has had a certain impact on the operating confidence of textile mills.
The person in charge of the company said that the main reason is still affected by domestic and foreign consumption and the Xinjiang cotton ban. In the face of poor market conditions, insufficient downstream demand power, and a sharp increase in the operating rate of domestic textile mills, the market has become saturated, resulting in increased operating pressure on enterprises. Regarding the outlook on the market outlook, the person in charge of the company said that he is currently cautious about the market outlook.
