Recently, the cotton spinning market has been weak, the operating rate of enterprises has decreased, and product inventory has accumulated. Destocking has become the main theme of the industry. Current consumption is the key and has become an important factor affecting the rise of cotton prices.
According to a downstream textile company, the current efficiency of carded yarn is not ideal. First, there are few orders, which will basically last until the end of December, and there are insufficient follow-up orders. Second, spinning profits are low. With the support of cotton reserves in the early stage, the company still has a small profit. If all new cotton is used for textiles, the loss per ton of cotton yarn will be more than 1,000 yuan/ton; third, the downstream fabric factories have large inventories and are currently in the process of destocking, so there is insufficient motivation to purchase cotton yarn in the short term. There is another situation worthy of attention. Nowadays, companies are very cautious in purchasing. As the end of the year approaches, companies are under great pressure to collect payments. Without sufficient cash, it is difficult to prepare large quantities of inventory. Therefore, the textile industry is still very deserted in the short term.
A textile company in Henan also said that its company mainly does processing, and orders are scheduled until the end of the year. The profit per ton of yarn is more than 1,000 yuan/ton. The current price of new cotton is 22,000 yuan/ton. Even if it purchases new cotton yarn, there is still a certain profit. Although the overall industry is sluggish, the production and sales of enterprises are stable. At present, the orders and profits of combed yarn are poor, obviously not as good as semi-precision yarn or compact spinning yarn. The business person said that the 80/20 rule exists in every industry. Even if the industry is in a downturn and most companies are not doing well, there will be some companies that do well in operations. Generally speaking, the cotton spinning industry is not as pessimistic as everyone imagines, and it is normal to encounter problems at present. After all, the entire industry has experienced a round of rapid development since last year, and some companies will feel uncomfortable if the development speed slows down.
Cotton prices are now basically stable, which provides conditions for corporate procurement. Otherwise, cotton mills can only sit back and watch cotton prices rise and fall. Therefore, when the industry is too pessimistic, you must keep calm and think clearly, and never follow the crowd.
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