According to feedback from some weaving companies and traders in Jiangsu, Zhejiang, Guangdong and other places, the market prices of cotton fabrics and cotton gray fabrics have fallen slightly since early March. The replenishment of cotton yarn inventory has also been adjusted to purchase as needed and buy as needed. Reduce the pressure on working capital occupied by raw materials and finished products, and the pressure on terminal consumption will be transmitted in the opposite direction to cotton yarn and cotton. Inquiries and shipments of cotton yarn from small and medium-sized cotton spinning mills in Henan, Shandong and other places are not smooth. The phenomenon of overstocking is becoming more and more obvious. Some yarn mills’ quotations have been “overtly and covertly reduced” – they have adopted expanded profit margins for old customers and large orders. , operations such as increasing bargaining space.
A medium-sized textile company in Henan said that after the Spring Festival, the company’s orders for high-count yarns of 40S and above were lower than expected, and spinning profits continued to be compressed or even incurred losses. Coupled with tight operating funds, cotton raw material procurement will be from 2021 to 2021. /22 Xinjiang cotton, port customs clearance US cotton/Brazilian cotton are adjusted to state-owned Xinjiang commodity cotton, high-quality and high-index real estate cotton in the Yellow River Basin, and port medium and low-quality foreign cotton. The flagship product is also adjusted from high-balancing and bleaching 40S to high-balancing and bleaching. 32S, and appropriately expanded the production and order taking of T/C 65/32 32S and T/C 65/35 45S yarns. Reducing costs, improving efficiency, and ensuring profits have become top priorities. The company reported that in the past week, the demand for C32 high-end yarn and C40S high-end yarn has improved in Guangdong, Zhejiang, Fujian and other markets, and customers mainly place short orders and urgent orders.
Judging from the survey, due to the rising prices of commodity futures such as crude oil, natural gas, chemicals, heavy metals, agricultural products, etc., coupled with the recent trend of domestic epidemics blooming at multiple points and spreading rapidly, various regions have upgraded their epidemic prevention and control measures and internal policies. The new orders for exported textiles and clothing are not very prosperous, so the confidence of some cotton textile companies has dropped significantly compared with the complacency before the Spring Festival, and the replenishment of cotton and other raw materials has been pushed back again and again.
An export company in Jiangsu stated that due to the increasing impact of the Russo-Ukrainian war on the global economy, transportation, and trade, negotiations on the second phase of the Sino-US trade agreement have not yet begun, and USTR released an annual trade policy report stating that it is re-adjusting its trade policy towards China. , studying all existing tools and possible new tools to fight China, coupled with uncertain factors such as rising shipping costs again, Chinese companies are also cautious in accepting export orders.
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