According to feedback from several small and medium-sized cotton spinning enterprises in Shandong, Henan and other places, in late June, not only the shipments of OE yarn and 8S-16S ring spinning yarn gradually slowed down, but also the ex-factory price and the transaction price in the light textile market continued to fall. 50S and above Orders for high-count carded/combed yarn are still scarce, and yarn mills can only process them according to order.
A textile company in Tai’an, Shandong Province said that denim orders in the Guangdong and Zhejiang markets have recently peaked and declined. Fabric factories mainly focus on small orders. The demand for domestic 16S and below open-end spinning and ring spinning has dropped significantly, and the cotton yarn production and sales situation has further deteriorated. the trend of.
Judging from the survey, some small and medium-sized weaving factories and fabric companies in coastal areas such as Guangdong, Jiangsu and Zhejiang are still increasingly willing to continue to reduce production capacity or even temporarily suspend production. In addition to insufficient orders, peak electricity bills are rising, terminal repayments are slow, and cash flow is tight. and high finished product inventories are all important factors that induce companies to “reduce production capacity and reduce procurement.”
Some cotton spinning companies said that due to the large differences in the cost of raw materials such as cotton and polyester staple fiber among various companies, as well as the large differences in gauze inventory and operating pressures among companies, cotton yarn quotations on the market are confusing. Different manufacturers and brands are C32 and C40. The price difference of high-grade cotton yarn even reaches 800-1,000 yuan/ton. A yarn factory in Baoding, Hebei Province reported that if orders for knitting yarn and terry yarn in July still cannot meet more than 60% of the factory’s production capacity, it will be forced to suspend production and take a holiday.
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