According to feedback from small and medium-sized cotton textile enterprises in Jiangsu, Hebei, Shandong and other places, orders for C40S and above ring spinning yarns and high-count combed yarns have not improved much since mid-July, and the production, sales and inventory accumulation rates of OE8S-OE21S yarns are still low. It is obviously better than ring spinning/siro spinning. Some denim factories and home textile companies in Guangdong, Jiangsu and Zhejiang and other places use high-quality OE yarn instead of low-count ring spinning to achieve the purpose of reducing costs and improving efficiency.
A textile company in Xuzhou, Jiangsu Province said that its inventory of cotton, polyester staple fiber and other raw materials will remain for about a month. Even if the contract price of Zheng Cotton CF2209 exceeds 15,000 yuan/ton or 14,000 yuan/ton, it has no plans to replenish its inventory in a large amount. . Recently, some foreign trade companies and end customers’ orders for “non-Xinjiang cotton” have shown signs of recovery. However, considering that the cost of importing US cotton/Brazilian cotton under the 1% tariff is significantly higher than that of Xinjiang cotton in the mainland bank for 2021/22, export orders have been short-term. There are mostly single and small orders, and there is a serious shortage of medium and long-term orders. Coupled with the recent persistent high temperatures in East and Central China, off-peak electricity consumption and rising electricity prices, yarn mills are not very enthusiastic about accepting export orders and maintaining production, It is a routine operation for textile companies to no longer stock up on gauze and wait for the order situation to improve.
Judging from the survey, the probability of centralized restocking of raw materials by small and medium-sized textile enterprises in July/August is relatively low. Some enterprises have repeatedly postponed cotton purchases. Some yarn mills in Henan and Shandong even plan to compress cotton inventory to 20 days. Within the limit, to prevent a large amount of raw materials, finished products, etc. from occupying working capital, causing the company’s cash flow to tighten or even collapse. A 60,000-spindle yarn factory in Nanyang, Henan Province reported that due to too few orders for combed yarn above 40S and production and sales being in an inverted state, it will no longer accept orders for 50S-80S carded/combed yarn starting from July (by phone, fax, email Notify downstream customers through other methods), the current workshop operation rate is only 50%-60%, employees implement rotation, staggered start-up, short vacation and other measures. The company judged that due to the lack of recovery in export and domestic sales orders in July/August, and the gradual tightening of bank credit funds, a large number of surrounding cotton spinning mills have postponed the centralized replenishment period of raw materials until the launch of Xinjiang cotton in 2022/23. , until October, it will be a “buy as you go, purchase based on order” status. Since the market demand for polyester-cotton blended yarn, polyester-viscose blended yarn and new fiber yarn is not large, and more textile companies have switched production since 2022, production and sales have long been saturated. Therefore, currently cotton spinning mills hope to “keep the cotton yarn until the moon comes.”
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