According to feedback from cotton yarn traders and weaving mills in Guangdong, Jiangsu and Zhejiang, etc., Zheng cotton has fallen sharply for a period of time, resulting in a large difference in the cost of raw materials for cotton spinning mills. In addition, the cotton yarn accumulation rate and capital flow status are different, and the ex-factory price of cotton yarn is chaotic. Due to the relative scarcity of cotton yarn orders in the market, yarn mills and traders have secretly cut prices to compete, exacerbating the chaos in the cotton yarn market price. It is not uncommon for the price difference between the quotations of high-quality C32S cotton yarn in Shaoxing, Changzhou, Nantong and other places to reach 500-800 yuan/ton.
A medium-sized weaving company in Lanxi, Zhejiang said that it is definitely unreasonable to calculate the price and profit of cotton yarn based on the current cotton price, but it will not be calculated based on the high-cost cotton in stock for 1-2 months in the cotton spinning mill. The company will try to keep the raw material purchase price as low as possible. , to free up some profit space for orders from July to August. It is understood that because terminal foreign trade companies, clothing and fabric companies generally extend the payment period to 2-3 months or accept payment, the company has also significantly reduced the cash payment ratio for cotton yarn purchases to less than 50%, increasing credit, Regarding the payment ratio of the bill period, some original suppliers chose to postpone cooperation because they could not accept the pressure on payment.
Judging from the survey, the recent high-temperature weather in East China, Central China, South China and other places has triggered “off-peak power consumption” and “power blackouts”, which has not had a significant impact on cotton spinning mills and weaving enterprises in Jiangsu and Zhejiang. On the one hand, it is currently in an obvious off-season for both exports and domestic orders. A large number of spinning and weaving companies can meet order needs with an operating rate of 40-60%. Therefore, measures such as job rotation, night production, and shutdown maintenance are adopted; on the other hand, Faced with the sharp fluctuations in Zheng cotton, the U.S. ban on Xinjiang cotton imports, and the uncertainty of receiving orders in the second half of 2022, spinners and weaving companies have a strong wait-and-see attitude and are afraid to purchase cotton yarn and gray fabrics in large quantities to replenish their inventories.
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