According to feedback from cotton textile companies in Shandong, Jiangsu, Hubei and other places, the Zheng cotton CF2209 contract has recently been reduced by 1,600 points, a drop of 7.86%. In addition, there are no obvious signs of recovery in terminal exports and domestic demand, and some yarn mills have significantly lowered their quotations. , C40S and above count cotton yarn even adjusted 500-800 yuan/ton, high-count carded/combed yarn has a slightly larger decline, while OE yarn, low-count ring spinning yarn has a smaller decline.
A medium-sized yarn mill in Shandong said that due to the relatively small number of new orders received by the mill in May, the procurement of raw materials since 2022 has been “buy as you use and replenish the inventory according to the order”. Therefore, the main contract of Zheng Cotton fell sharply by more than 1,000 points. Under such circumstances, on the one hand, we actively purchase Xinjiang cotton and real estate cotton in 2021/22 based on the price difference; on the other hand, we significantly reduce the quotation of cotton yarn to win orders for the autumn and winter of 2022.
A cotton textile and clothing company in Jiangsu believes that the volume of European and American Christmas and Easter orders in 2022 may be significantly lower than the same period in 2021. First, my country’s textile and clothing products export tariffs to Europe and the United States are higher than those of Southeast Asian countries, and their competitiveness has narrowed. For example, my country The company’s export tariff to EU countries is 12%, but its competitor India is 9%, and exports from Turkey, Pakistan, Bangladesh and other countries have zero tariff. Second, due to the impact of central banks in Europe and the United States raising interest rates and shrinking their balance sheets in response to high inflation, wages and incomes in European and American countries have fallen into a state of stagflation, which has led to a decline in local consumption of cotton textiles, clothing, etc. and an increase in inventories. Brand clothing companies and retailers in Europe and the United States and other countries have The order quantity was adjusted accordingly.
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