According to feedback from some cotton spinning mills in Jiangsu, Zhejiang, Shandong, Henan and other places, the CF2109 contract price last week gradually recovered the lost ground of 17,500 yuan/ton, and the spot basis, point price, and fixed price rose in response. Traders in the light textile market in Guangdong, Jiangsu, Zhejiang, Shandong and other places have gradually entered the market to stock up on cotton yarn, gray cloth and fabrics (mainly considering the upcoming “Golden Nine and Silver Ten” period in the cotton textile industry). Therefore, cotton spinning mills are becoming more enthusiastic about raising the ex-factory price of cotton yarn again.
From the survey, the phenomenon of cotton yarn accumulation has increased compared with July, but it has not reached the “warning line” level. On the one hand, cotton spinning companies have active plans to stock up on conventional cotton yarns such as C32 and C40S, and are reluctant to sell them; on the other hand, the futures prices of cotton and cotton yarn have increased significantly since August, and downstream weaving, fabrics, clothing and foreign trade companies need time In order to absorb the pressure of rising costs, there were many inquiries for cotton yarn, but the actual delivery was less than in the previous period.
So what is the basis for cotton spinning companies to plan to raise cotton yarn prices again? The industry summarizes the following points: First, the COVID-19 epidemic has returned in Southeast Asian countries such as Vietnam and Indonesia, and cotton textile and clothing companies have been increasingly affected (statistics from the Vietnam Textile and Clothing Association show that 30% to 35% of garment factories in the country currently have bankruptcy), orders will accelerate back to China. Coupled with the arrival of the “Golden Nine and Silver Ten” in the domestic market, orders from cotton textile companies will be very sufficient; secondly, in the past week or so, imported cotton yarn shipments and bonded quotations have continued to be strong, and the center of gravity has continued to shift upward. The net weight quotations are once again the same as those of domestic products of the same quality. The quotation of yarn weight is “upside down” by 200-300 yuan/ton, and the price comparison effect stimulates cotton spinning mills to raise prices; third, the upgrade of epidemic prevention and control measures in Jiangsu, Hubei, Hunan and other provinces has caused cotton yarn production and shipment to be affected to varying degrees. The overall supply has weakened; fourth, in the past week or so, cotton futures prices have increased significantly and some cotton spinning mills have purchased raw materials at high prices. The net profit of cotton spinning mills has declined, and textile companies are eager to transfer the rising costs of raw materials to downstream and terminals. transfer. </p
