According to feedback from cotton spinning mills and traders in Henan, Jiangsu and other places, cotton yarn prices in India and Pakistan have soared in parallel with cotton prices recently. The arrival of a small number of spring and summer orders has stimulated some domestic weaving mills and cotton yarn traders to start restocking before the Spring Festival. Cotton yarn inventories in some textile companies dropped.
It is reported that cotton spinning mills with relatively good liquidity are the first to tentatively raise their quotations, generally ranging from 300-500 yuan/ton. Among them, OE yarn has a small increase, high-count yarn and combed yarn have a slightly larger increase, and the actual transaction price has been raised. 200-300 yuan/ton. Except for some transactions of C40S and C32 conventional yarns, other yarn counts performed weakly.
A medium-sized textile company in Dezhou, Shandong said that although the main contract of Zheng Cotton has increased sharply since December, the quotation of cotton yarn has obviously not kept up with the rise in cotton futures prices. The profits of textile companies have continued to decline, and the low-priced raw materials of some enterprises above designated size have gradually been consumed. With the start of new cotton procurement in 2021/22, spinning costs will also rise significantly.
At present, there are mainly five factors that restrict the substantial increase in cotton yarn quotations: First, towards the end of the year, weaving, fabrics, clothing and other terminals have gradually entered a rhythm of reducing production, suspending production, and taking holidays. In addition, cotton yarn traders are not enthusiastic about inventory this year, and there is a lack of increase in cotton yarn prices. Trading volume supports; secondly, the cost pressure caused by the sharp increase in cotton and cotton yarn since the 2021/22 cotton season is still not smoothly transmitted to consumer terminals, and the upside down production and sales of the entire industry chain continues; thirdly, once the cotton yarn quotation is hastily and significantly raised, it is likely to lead to a spring Summer orders have shifted and accelerated to Southeast Asian countries; fourth, recent foreign trade orders in coastal areas are mostly non-Xinjiang cotton, and the domestic demand market has not yet started.
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