According to feedback from small and medium-sized cotton textile enterprises in Hubei, Henan, Shandong and other places, the finished inventory of OE yarn, 40S and below ring spinning yarn and high-count combed yarn has increased to varying degrees since June, and 7/8 There are not many new orders received in January. At present, cotton spinning mills are rushing to catch up on orders and complete the contracts signed in March/April as soon as possible; on the other hand, in order not to reduce or suspend production, they are appropriately accumulating some conventional carded and combed yarns.
A 60,000-spindle yarn mill in Dezhou, Shandong Province said that in the past month, the shipment situation of OE yarn and 16S-21S yarn has been very unsatisfactory, and new orders have been significantly lower than expected; The sales situation of 50S and higher count combed yarns is slightly better than that of 21S and lower count cotton yarns. Inquiries and transactions of OE21S and C32, C40S high-end compact spun carded yarns have also reached an inflection point. Therefore, in order to reduce finished product inventory, the factory To reduce the risk of cash flow being heavily occupied, measures such as increasing cotton yarn count, reducing equipment load, and increasing blended yarn production are adopted.
From the survey, cotton textile and traders generally summarize the reasons for the softening of cotton yarn shipments and the gradual accumulation of inventory as the following points:
First, the epidemic has recently broken out again in Guangdong, and prevention and control has been upgraded; coupled with large-scale power rationing and peak-shifting power consumption (“open three days, three days off” in some areas), resulting in weaving factories, textile markets, etc. The demand for cotton yarn has dropped significantly, and the industry is worried that Zhejiang, Fujian, Jiangsu and other places will also start power rationing in advance;
Secondly, the epidemic situation in Southeast Asian countries such as India, Pakistan, and Bangladesh has been gradually increasing since late May. The cotton textile and clothing industries are accelerating the resumption of work and production. Not only the expected large-scale return of orders from Europe and the United States has failed, but also the orders for home textiles, bedding and other items received in the early stage are at risk of being lost again;
Third, the RMB appreciated sharply from March to May, and the cost of imported yarns from Vietnam, India, Pakistan, Uzbekistan and other countries continued to decline. The impact on domestic cotton yarns with counts of 40S and below was getting bigger and more prominent; especially the United States The government has implemented a broad import ban on Xinjiang cotton products, and some export-oriented enterprises and OEM cotton yarn procurement have to “increase imports and reduce domestic production”;
Fourthly, sea freight rates continue to rise sharply, The shortage of containers and the increase in other hidden expenditures have put even more pressure on the export of cotton textiles and clothing with low profits. Textile and clothing companies are “too prepared to deal with some short-term and medium-term orders”, and the bottleneck encountered by terminal consumption is passed on to the midstream and upstream;
Fifth, the off-season characteristics of the domestic demand market have emerged. Orders for the spring and summer of 2022 are still in the stage of plate making, proofing, and pending confirmation. Orders cannot be issued until August at the earliest. It is recommended that cotton spinning mills are still “inventory” Mainly conventional carded yarns of C32S and above should be used, and the stockpile of high-count combed yarns above 60S should not be large. </p
