According to feedback from some downstream customers and cotton traders, since late July, cotton yarn has continued to show a trend of both volume and price. Not only small spinning mills and small weaving mills have encountered greater difficulties in destocking finished products, but some large and medium-sized spinning mills have high counts. The inventory of carded yarn and high-count combed yarn also increased moderately.
A large textile company in Taizhou, Jiangsu stated that, in addition to special yarns and organic cotton yarns that have some profits, conventional carded and combed yarns are almost 100% profitless or even loss; the consumption of cotton yarns in terminal weaving, clothing and other enterprises has declined in the past month. The downgrade was obvious, and the relay sales of high-end and fine-quality yarns declined.
According to the judgment of textile and cotton enterprises in Shandong, Hebei, Henan and other places, as of the end of July, the reduction and suspension rate of spinning mills with 30,000 spindles and below may reach 30-35%; even if the operation rate of large and medium-sized spinning mills with more than 50,000 spindles is Only 60-70%, the phenomenon of resuming work is more prominent. On the one hand, not only the recent orders for high count carded and combed yarns above 40S are relatively scarce, the consumer demand for OE yarns and ring-spun yarns below 16S oscillates down, and there are few hot-selling varieties in the entire cotton yarn and grey cloth market; on the other hand, due to Domestic orders from July to August are in a period of non-acceptance, and foreign trade exports are still dominated by "short orders, small orders, and no profit orders". Therefore, large factories cannot start at full capacity, and there are few orders for outsourcing processing gauze. Cloth factory orders are sporadic, and the smoothness of raw material procurement, production arrangements, and sales collection is limited. Choosing to reduce and stop production is not only a way of avoiding risks, but also the helplessness of labor-intensive industries.
Mainland cotton textile enterprises report that due to the recent increase in confirmed cases of new crown pneumonia in Xinjiang, Xinjiang cotton road transportation and railway shipments have been affected to varying degrees (Akesu, Kashgar and other regulatory libraries have suspended road shipments); plus Zheng cotton CF2009 contract price It broke through 12,000 yuan/ton. Therefore, textile companies and middlemen are paying attention to Xinjiang cotton in the inner basement, and the price is more active than in early and mid-July. The basis of cotton resources in the inner basement of some traders is raised by 100-200 yuan/ton; Resources are asking for prices, transactions are deserted, and even priceless; pressure on ginners and cotton traders in Xinjiang has increased with the spread of the epidemic and the upgrade of prevention and control.
