According to feedback from cotton spinning mills and traders in Jiangsu, Zhejiang, Henan, Shandong and other places, the transaction price of combed yarn with a count of 60S and above has dropped significantly in the past week or so, with some manufacturers adjusting by more than 500 yuan/ton. At present, the inquiries and shipments of C40S and below ring-spun and OE yarns have not improved much. The overall transaction volume is relatively cold, and the yarn price has also mainly declined slightly.
A medium-sized textile company in Henan said that as the end of the year approaches, downstream weaving and clothing companies are troubled by multiple factors such as insufficient orders, tight funds, and the spread of the new crown epidemic. Cotton yarn is basically bought as needed; on the other hand, Guangdong, Traders in the light textile market in Jiangsu and Zhejiang provinces and other places are less willing to stock up on goods before the Spring Festival, and most of them are currently operating with withdrawn funds. In addition, the comprehensive upgrade of epidemic prevention and control in various regions has not only affected the production and order-taking of labor-intensive enterprises such as weaving, printing and dyeing, and clothing, but also affected the transportation of cotton yarn, gray cloth, and fabrics.
Judging from the survey, since early December, cotton textile mills have begun to go to the warehouse to collect money, giving them sincere bargaining space. Some companies with large cotton yarn inventories have reduced their sales by 300-500 yuan/ton. As for the reason why cotton spinning mills continue to cut prices and even rush to ship goods at the expense of production and sales, industry analysis not only has the cotton yarn inventory generally increased to 20-30 days, it is also related to the recent concentrated dive in cotton yarn quotations in India, Vietnam, Pakistan, and Central Asia.
At present, the price difference of cotton yarn is relatively large, and the market is relatively chaotic. The price difference of the same high-quality 40S cotton yarn in the Guangdong, Jiangsu and Zhejiang markets reaches about 500 yuan/ton. Some cotton yarn traders judge that due to the impact of the epidemic, weak terminal orders, skyrocketing sea freight on various routes in Southeast Asia, and tight cash flow at the end of the year, the support for cotton futures rebound in downstream markets such as cotton yarn and gray fabrics before the Spring Festival is still relatively weak.
</p
