According to feedback from some cotton yarn traders in Guangdong, Jiangsu and Zhejiang, etc., recent inquiries and shipments of ring-spun yarn and OE yarn of 40S and below have improved compared with February. The trading volume of low-priced cotton yarn with medium and low configurations and without bleaching has rebounded slightly. Sales of high-count yarn produced from long-staple cotton have been sluggish. The industry believes that after the Spring Festival, cotton yarn quotations rose briefly and then fell rapidly. The decline in cotton yarn prices generally reached 500-1,000 yuan/ton, making it more attractive to cloth mills and traders.
As domestic textile and apparel orders gradually picked up in March, some cloth factories and middlemen with low inventories of cotton yarn raw materials started a phased replenishment mode. In addition, according to statistics from several large and medium-sized cotton yarn importers, the amount of imported cotton yarn arriving in my country in February may be 105,000-108,000 tons, continuing to decline from the previous months. In addition, the arrival of cotton yarn from India, Pakistan and other producing areas has decreased significantly, especially The customs clearance quantity of C21, C32S, JC21 and JC32S cotton yarn is low.
Small and medium-sized cotton spinning companies in Jiangsu, Henan and other places said that the price of Xinjiang cotton in 2021/22 will only be reduced by 300-400 yuan/ton, and the spinning cost of cotton spinning mills has not dropped. Due to the difficulty in receiving orders in the second quarter of 2022, the sales progress of cotton yarn is skewed. Slowly, the inventory accumulation phenomenon increased, so it was forced to lower the ex-factory price of cotton yarn and speed up the return of funds. The profit situation of cotton yarn deteriorated again compared with around the Spring Festival. Regarding the short-term trend of Zheng cotton, small and medium-sized textile companies generally believe that the consumer side has not yet made significant efforts. The Federal Reserve’s interest rate meeting in March is approaching and the impact of the Russia-Ukraine conflict on global trade, shipping, etc. continues to increase. The main contract of Zheng cotton may return to the market. 20,000-21,000 yuan/ton to adjust the energy storage.
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