Judging from recent surveys of some cotton spinning mills in Hebei, Henan, Shandong and other places, the main contract of Zheng Cotton CF2201 has fallen below the integer mark of 17,200 yuan/ton since late August (the intraday low is 17,105 yuan/ton, and it is currently long and short The two sides are deadlocked in the 17200-17500 range). Cotton yarn inquiries and purchases by some weaving factories and traders in Guangdong, Jiangsu, Zhejiang and other places have slowed down significantly compared with the previous two months, and cotton yarn quotations have begun to change from a hidden drop to an explicit drop.
An 80,000-spindle cotton spinning mill in Handan, Hebei said that although the enthusiasm of weaving and fabric companies in Jiangsu, Zhejiang, Guangdong and other places to place orders continued to weaken in mid-to-late August, the cotton yarn trade in various light textile markets Merchants and middlemen are very enthusiastic about purchasing and hoarding goods, and a large proportion of cotton yarn has entered the circulation link. Therefore, both cotton spinning mills and traders have reached a tacit understanding. The yarn price is trying to stabilize at a high level, and the discount for old customers and large customers has been expanded to 200-300 yuan/ Ton.
It is understood that the current orders for high-count combed and carded yarns of 50S and above are not satisfactory, and the quotations of imported SJV PIMA cotton and Xinjiang long-staple cotton have continued to stabilize in the past month ( It did not follow the rhythm of Zheng Cotton’s dive), and the price reduction of high-count yarns was relatively small. Cotton yarn varieties with counts of C40S and below became the “main force” for adjustment.
Why did the textile companies finally lose the ability to bear it and passively lowered the quotation of cotton yarn? Industry analysis has the following reasons. First, the current procurement of cotton yarn traders in coastal areas has been basically saturated, and stocking operations have decreased, while fabric factory purchases mostly “buy as you use, and take the goods after seeing the order”; second, since late August, The accumulation of cotton yarn in some cotton spinning mills is becoming more and more obvious, and working capital is being squeezed, and the concerns of yarn mills are intensifying; third, some weaving mills, fabrics and clothing companies are not ideal for new orders in the fourth quarter of 2021 (some companies can only hold on until mid-September) In the second half of the year), consumer terminals’ expectations for cotton yarn and cotton consumption have turned negative; fourth, as the domestic epidemic has been effectively controlled, cotton spinning mills in Jiangsu, Henan, Hubei and other places have quickly resumed work and production, and the transportation of Xinjiang cotton yarn out of Xinjiang has improved significantly, and the supply of cotton yarn has increased significantly. . </p
