According to feedback from the light textile market in Guangdong, Jiangsu and Zhejiang and other places, recent inquiries and shipments of OE yarn, ring-spun carded and combed yarn have slowed down compared with before late May. In May, supply tightened and transaction prices were firm. Traders’ inventory of C40S mid- to high-end cotton yarns also appears to be overstocked.
Since May 21, the new crown epidemic broke out in Guangdong, and the province’s prevention and control level has been comprehensively improved. The textile markets in Guangzhou, Foshan, Zhongshan and other places have been affected to varying degrees. In addition, the impact of factors such as the domestic sales market entering the off-season, the sharp appreciation of the RMB, and the difficulty in improving Sino-European relations on foreign orders cannot be underestimated. Due to low profits, short delivery times, soaring freight rates and “hard to get a ticket”, it is not uncommon for Chinese textile and apparel companies to reject or abandon orders.
According to the survey of cotton spinning mills in Henan, Shandong, Xinjiang and other places, cotton yarn, blended yarn and other places are not willing to lower their quotations, and most of them remain at the level of early to mid-May. Textile companies have strong ideas to support yarn prices in the short term:
First, the Zheng Cotton CF2109 contract price continues to consolidate in a narrow box at 15,300-15,500 yuan/ton, and cotton prices hit a The second is that the yarn shipments of textile enterprises have slowed down and the inventory has been accumulated, but it is still lower than the normal level. The production and sales rate and capital flow pressure of textile enterprises are within the controllable range; third, the epidemic situation in many countries in South Asia and Southeast Asia is urgent , it is expected that a large number of orders from Europe, the United States, Japan, South Korea and other countries will return to China from Southeast Asian countries from June to October; fourth, the epidemic in Europe and the United States has an obvious turning point, economic recovery has accelerated overall, and consumption of textiles, clothing, etc. will show a retaliatory rebound. </p
