Cotton yarn market performance is sluggish

[168TEX News] Entering the textile off-season, the overall operation of the domestic textile industry is still weak, the market performance is unsatisfactory, and the same is true for the cotton yarn market. Recently, yarn manufacturers adopt the end-of-year sales promotion method, but they must be shipped on time to avoid arrears, in order to reduce inventory and recover working capital. In particular, the quotations of some manufacturers in Shandong are compared with those in other regions, and manufacturers with lower quotations tend to preferential prices. many.

In the recent period, the market for cotton yarn has been flat, prices have continued to fall, and the inventory of spinning manufacturers is close to about one month, which is higher than the previous period. Up to now, the mainstream price of carded 32S is generally 19,400 yuan/ton. In the past half month, the price has dropped by about 300 yuan/ton. Merchants have no confidence in the later stage. Currently, shipments are extremely sporadic and their debts are serious. Merchants no longer expect to sell the goods later, but hope that the debt collection can go smoothly. Open-end spinning cotton yarn has been sold well recently. The current mainstream quotation of OEC10S is 11,700 yuan/ton, which is 100 yuan/ton lower than the previous period. Due to different cotton rations, I heard that some companies with higher prices have prices that differ by more than a thousand yuan. The sales of combed cotton yarn are relatively good. The current mainstream quotation of JC40S is 24,000 yuan/ton. In the past half month, the price has dropped by about 300 yuan/ton. Its sales response is slightly better than that of carded and open-end spinning. Currently, the production and sales of combed cotton yarn are slightly over 100, and the inventory has been slightly reduced. However, the market has insufficient confidence in the market outlook and believes that it is a short-term phased replenishment demand.
From the perspective of the raw material market, cotton supply reached its peak in November, but demand in the off-season was not optimistic, making it difficult for the cotton market sentiment to heat up. The domestic and foreign cotton price trends are relatively independent. ICE cotton futures fluctuated downwards, while Zheng cotton rose first and then fell, performing slightly better than foreign cotton. As cotton stocks have dropped to historical lows and driven by the mentality of hoarding high-grade cotton, textile companies have carried out periodic replenishment. Because the price difference between Xinjiang cotton and mainland cotton is not big, and the quality is far better than that of local cotton of the same level, mainland cotton is basically uninterested; foreign cotton has lost its price advantage and quota restrictions, resulting in reduced orders, arrivals and sales; therefore, the market High-quality Xinjiang cotton textile enterprises mainly purchase and replenish their stocks.
From the perspective of the downstream market, the current sales of gray fabrics in downstream weaving mills are gradually decreasing, and although prices continue to fall, the range has narrowed. In the face of poor orders, cloth factories have maintained low operating conditions, with the overall level maintained at about 60%. Inventory digestion is slow and is expected to be around 25-30 days. Cotton fabric companies mainly sell on credit and have a lot of triangular debts. Some merchants are worried about the problem of capital withdrawal in the later period and gradually turn their energy to the collection of arrears. Judging from the trend of market varieties, some autumn and winter thick fabrics such as gauze and knitted brushed fabrics are relatively popular, while cotton corduroy, cotton flannel, and cotton-span elastic fabrics are in strong sales. Home textile wide-width twill printing, gauze card, and poplin transactions are slightly concentrated, and some scattered batches of towels, quilts, and clothing series products are exported. It is difficult for retail investors to make profits, and the supply of most products exceeds demand.
On the whole, yarn companies currently determine production based on sales to avoid price drops. The volume of market orders has decreased, and they are mainly short- to medium-term orders and bulk orders. Enterprises have slightly lowered product quotations in exchange for sales. In addition, inventories have increased compared with the previous period. At present, credit is common in the gray fabric market, triangular debt is common, and yarn companies are slow to withdraw funds; mid- to low-end yarns are affected by imported yarns, and the downstream demand for mid- to high-end yarns is gradually weakening. The operating pressure of textile enterprises has not eased. They are looking for direction in the difficult situation, and the number of enterprises that limit production or suspend production is still increasing. There is insufficient confidence in the cotton yarn market in the later period, and more people maintain a wait-and-see attitude.