According to feedback from cotton textile enterprises in Henan, Shandong and other places, the purchasing willingness of traders and weaving mills in the light textile market in Guangdong, Jiangsu and Zhejiang has recently rebounded slightly, and the phenomenon of cotton yarn accumulation in warehouses has been slightly alleviated. This is generally related to cotton spinning mills cutting prices and dumping goods to withdraw funds. .
A cotton yarn buyer in Shaoxing said that although the market price of Zheng Cotton CF2205 contract recently exceeded the 20,400 yuan/ton mark, causing the spot price difference and fixed price to rise, the cotton yarn quotation not only showed no obvious signs of stabilizing and rebounding, but also gave negotiable prices. The space is 100-200 yuan/ton larger than that in early and mid-December. Because cotton yarn traders and large-scale weaving factories in coastal areas plan to reduce stocks before the Spring Festival, the short-term trading volume of cotton yarn has picked up, so the price is still on a downward trend. According to industry analysis, since a large number of cloth mills and light textile markets plan to have a holiday around January 15, cotton mills have little time left to destock.
Judging from the survey, the current cost of spinning pure cotton yarn and the sales price are seriously inverted (some yarn mills are losing more than 2,000 yuan/ton). In addition, consumer terminals such as gray fabrics, fabrics, and clothing have reported that the order boom in the first quarter of 2022 is not high. Some cotton spinning mills took active measures to save themselves. The first is to reduce the output of low-count yarns of C32 and below, and increase the output of carded yarns of 40 and above; the second is to switch to chemical fiber yarns and polyester-cotton blended yarns. Although the sales volume is not as good as pure cotton yarns, the profit situation is better than pure cotton yarns; Third, the production and sales of cotton yarn have fallen sharply. Some textile companies have relatively low willingness to ship goods in the short term and have a strong mentality of holding on to sell for rising prices. Therefore, they have adopted pledge financing to obtain working capital in order to tide over the difficulties.
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