According to feedback from several cotton spinning companies in Jiangsu, Zhejiang, Anhui and other places, the spot spot of cotton yarn has been weak since this week, and it is difficult to increase the quotation. The procurement of downstream weaving factories and middlemen basically negotiates one by one, and the phenomenon of price reduction has not changed. Although foreign trade and domestic demand orders during the “Golden September and Silver Ten” periods improved to a certain extent compared with July and August, they were still significantly lower than industry expectations. In particular, regular orders for cotton bedding, labor protection supplies, jeans, mid-to-high-end T-shirts and shirts, etc. dropped by 30-40% year-on-year. %, it will still take a long time for consumer terminal confidence to recover.
A textile company in Zhejiang said that consumption in the international market is still weak. Under the background of destocking pressure, the short-term decline in domestic textile and apparel exports may be difficult to change. Short orders and small orders are still the mainstream, and new growth lines and large orders are more difficult. . In addition, under the background of “strong expectations and weak reality” for both export and domestic demand, it is difficult for cotton textile companies to achieve breakthroughs in production and sales.
Judging from the survey, cotton-using companies generally believe that it is difficult to effectively transmit the rising cotton yarn price to downstream. In addition to the obviously lower than expected orders, it is also related to the following two factors: First, weaving companies and traders import a large number of foreign yarns, which reduces domestic production. Cotton yarn consumption demand. According to customs statistics, my country’s cotton yarn imports in August 2023 were 190,000 tons, a year-on-year increase of 120,000 tons, an increase of 155.8%; a month-on-month increase of 30,000 tons, an increase of 18.75%. From January to August 2023, my country imported a total of 1.02 million tons of cotton yarn, a year-on-year increase of 18.3%; second, the cotton yarn inventories of various light textile cities and traders in coastal areas such as Guangdong, Jiangsu, Zhejiang, and Shandong remain high (Foshan, Shaoxing, Changzhou, Nantong, etc. Public warehouses have been in a state of “liquidation” since July), and recently they have started to reduce the price of shipments. There is insufficient confidence to increase yarn prices.
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