According to the survey, affected by the sharp plunge in Zheng cotton since June 15, cotton spot quotations and fixed prices have plummeted, while downstream weaving, fabric, clothing and other companies have also lowered the price of cotton yarn (using real-time Xinjiang cotton The price is calculated based on the raw material cost of cotton spinning mills). A large number of cotton spinning mills directly close the market and do not quote external prices. If the customer has a solid order, the price can be negotiated. At present, the fluctuation range of cotton futures is relatively large, or it may be greatly affected by external markets, news, etc. Frequent adjustments to quotations are not conducive to receiving orders in the future. The cotton textile industry chain is relatively long, profits are limited, and there is not much room for price reduction. Facing the short-term sharp drop in raw material prices, we can only close the market and wait for further clarity on the market situation.
It is understood that despite the sharp fall in cotton prices in June, the initial victory in domestic epidemic prevention and control, and the comprehensive recovery of logistics and transportation in various places, textile enterprises and the light textile market generally reported that cotton yarn inquiries and shipments continued to be light, and the market was not active. A 50,000-spindle spinning company in Zibo, Shandong Province said that the accumulation rate of pure cotton yarn and blended yarn has been rising in the past half month. The company has taken measures to limit production. In the future, as long as the profit from production and sales can be flat or within an acceptable loss range, , companies still tend to take orders, start up operations, and not reduce staff.
Judging from company feedback, the main contract of Zheng Cotton fell below 18,600 yuan/ton, triggering a certain amount of buying into the market. Most of them still use basis price differences to purchase from traders and futures companies. Although the progress of raw material replenishment is slow, it continues Low purchasing has lowered cotton inventory costs of textile companies. In the past half month, the price quotations of cotton yarn produced using domestic cotton have loosened significantly, but the price reduction of cotton yarn produced using foreign cotton has been relatively small, showing strong resilience.
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