According to recent surveys of some cotton spinning mills in Hebei, Henan, Shandong and other places, the main contract of Zheng Cotton CF2201 has fallen below 17,200 yuan/ton since late August. At the integer mark (the intraday low is 17,105 yuan/ton, the current bullish and short sides are in a stalemate in the range of 17,200-17,500 yuan/ton), some weaving factories and traders in Guangdong, Jiangsu and Zhejiang and other places have made cotton yarn inquiries and purchases significantly higher than in the previous two months. The price of cotton yarn has slowed down, and the price of cotton yarn has begun to fall from a dark drop to an open drop.
In the spinning market, cotton yarn traders and middlemen are very enthusiastic about purchasing and stocking up. 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. In addition, SJV PIMA cotton and Xinjiang long-staple cotton have been imported in the past month. The quotations continue to stabilize (and do not follow the rhythm of Zheng Cotton’s dive). The price reduction of high-count yarns is relatively small, and cotton yarn varieties with counts of C40S and below have become 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. .
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