From the survey of cotton spinning enterprises in Shandong, Henan, Jiangsu and other places, although the Zheng cotton futures contracts fell sharply on May 13 and 14, the main force CF2109 continuously broke through multiple integer marks, and the external cotton yarn quotations weakened and fell. However, the quotations of domestic cotton yarns have mostly stabilized (since May Day, the quotations of cotton yarns in spinning mills have generally increased by 400-600 yuan/ton), and textile companies and traders are more enthusiastic about raising prices.
It is understood that since mid-April, with the return of orders from some European, American, India, Pakistan and other countries and the replenishment of domestic sales of autumn and winter bedding, home textiles, etc., C21S-C40S, etc. The price inquiry and demand rebound of cotton yarn is significantly higher than that of OE yarn and high-count combed yarn. Therefore, some cotton spinning companies promptly adjust their product structure by “reducing the two ends and increasing the middle” – reducing the output of cotton yarns with counts below 21S and cotton yarns with counts above 50S. , increase the production of 32S and 40S conventional yarns.
Why do textile companies have the confidence and confidence to support prices in response to the decline in raw materials such as cotton and polyester staple fiber? The industry summarizes the following points:
First, since May, cotton yarn sales and shipments have been relatively satisfactory, the upstream and downstream industrial chains are operating more smoothly than in March/April, and there is terminal consumer demand. Support, textile companies are “calm and calm”;
Second, as of now, most textile companies’ cotton yarn and gray fabric inventories are still at a low level (still far away from the “warning line” (some distance away), the early accumulation of inventory has been greatly alleviated. Under the premise that capital flow is relatively abundant and the risks of raw materials and finished products are controllable, the wait-and-see atmosphere of textile enterprises is strong;
Third, textile companies cannot adjust yarn prices frequently, otherwise they will encounter difficulties in receiving and arranging orders. Since the “May Day”, a large number of domestic textile companies have experienced two rounds of yarn price increases, ranging from 100-200 yuan/ton and 300-500 yuan/ton respectively. The upward momentum is strong; once it occurs in just half a month, If the yarn price is lowered again, early orders will face the risk of being unable to execute or being forced to reduce prices or sign new contracts;
Fourthly, textile enterprises generally believe that the bottom of Zheng Cotton’s 15,500 yuan/ton is basically established , the market has overreacted under the negative pressure of the domestic epidemic situation and the fall of external commodities. The short-term CF2109 contract will still return to consolidate around 16,000 yuan / ton, so “watch more and move less”;
Fifth, as India, Pakistan and other Southeast Asian countries extend their blockades, the impact on the production and order-taking of textile and clothing enterprises is increasing. A large number of early “wait-and-see” orders from Europe, the United States, Japan, South Korea and other countries will accelerate flow back to China. </p
