In April, spring and autumn orders in the textile industry are gradually coming to an end, and the number of downstream orders has further decreased. According to a recent survey of enterprises, most textile enterprises can only support orders until the end of April. There are few new orders from terminals, and some midstream and upstream enterprises have experienced temporary interruptions in receiving orders. The current poor downstream demand is due to both the impact of the external epidemic counterattack and the weakening cotton price.
According to real-time statistics from Johns Hopkins University in the United States, as of April 13, the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 130 million, with more than 2.94 million deaths. . The World Health Organization stated on April 12 that the number of new confirmed cases of COVID-19 in the world has increased for the seventh consecutive week, and the epidemic situation in many countries is worsening significantly.
India, the largest cotton-producing country, has now surpassed Brazil and once again became the second most severely affected country in the world by the epidemic, and relevant experts said that the number of cases is now increasing “exponentially.” Due to the impact of the epidemic, some textile and garment export companies have delayed shipments and delivery times, and there has been some resistance to the purchase and sales transmission of the industrial chain.
In addition, some midstream gauze companies are overly optimistic about the market before and after the Spring Festival, and it is common for trading companies to stock up. However, after cotton prices surged and fell, cost support weakened, and gauze transactions shrank. , causing some businesses to give up profits and sell goods. Looking at the trend of the cotton textile market in March, cotton and cotton yarn both experienced a sharp drop of 1,000-2,000 yuan/ton, which caused a great psychological impact on investors and the upstream and downstream industries. With the market outlook unclear, textile companies have greatly reduced their enthusiasm for purchasing cotton and cotton yarn, resulting in recent spot purchases and sales of floral yarns stagnating.
At present, insufficient follow-up of orders by downstream textile companies is a prominent problem. Furthermore, whether the escalation of foreign epidemics will inhibit my country’s textile and apparel exports and whether the Xinjiang cotton incident will affect downstream are all affecting fundamental demand. important factor in recovery. Therefore, in the absence of clear positive stimulus, short-term cotton prices are expected to continue to be under pressure. </p
