Cotton spinning enterprises in Shandong, Jiangsu, Henan and other places reported that driven by the rising cotton futures prices in the past two weeks and the strong rebound in quotations of imported cotton yarn from India, Pakistan, Indonesia and other places, some weaving mills and traders in Guangdong, Jiangsu and Zhejiang started to open at the end of the year. During the phased stocking operation, domestic cotton yarn quotations were tentatively raised, and the confidence of textile enterprises has recovered and increased compared with the previous period.
While the price of cotton yarn is rising, textile enterprises’ inquiries and purchases of cotton have not improved significantly before the holiday, and there has been no centralized or large-scale restocking behavior. On the one hand, in January, the capital flow of cotton textile enterprises is generally tight, and the difficulty of collecting payment this year is particularly prominent. Therefore, except for large and medium-sized textile enterprises above designated size, small and micro enterprises are unable to replenish their stocks even if they have plans to do so; On the other hand, some textile and garment enterprises and foreign trade companies in coastal areas said that although foreign orders have been issued in the recent spring and summer, there are specific procurement requirements for cotton raw materials.
It is understood that in January, some small and medium-sized cotton textile factories in Henan, Shandong and other places have gradually reduced their orders and arranged orders. They plan to have a holiday around January 15, and the procurement of raw materials such as cotton, polyester staple fiber, viscose staple fiber, etc. has also been postponed to Around mid-February; the rapid spread of the COVID-19 epidemic in Zhengzhou, Xuchang and other places in Henan Province has increased the concerns of small and medium-sized cotton textile mills and clothing companies, speeding up the progress of reducing production suspensions and taking holidays in advance. On the contrary, as of now, the shipments of cotton yarn and gray fabrics from some large-scale domestic factories are still relatively good, the accumulation rate is not high, the capital flow is sufficient, and the holiday time will not be advanced, mainly due to the low prices before November. Factors such as stocking up on raw materials such as cotton, stable gauze quality and customer channels, and a large proportion of high-count, high-value-added products.
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