Cotton prices continued to fluctuate and fall in the early stage. Although they have rebounded recently, the overall momentum is insufficient. Sales in the domestic cotton spinning market are divided, and orders from textile companies continue to decrease. However, some textile companies still have good sales and continuous orders, which can basically be maintained until the Spring Festival holiday.
Recently, affected by the COVID-19 outbreak, cotton yarn sales have declined, especially for merchants selling to Guangdong, which has basically stagnated. If the epidemic continues to break out, it will further affect the textile market. At present, companies are not optimistic about the sales situation, and their purchases of raw materials will decrease, and they will wait and see more. Upstream cotton processing companies generally face sales difficulties.
Domestic downstream demand is shrinking. As the world’s largest textile exporter, China’s export situation is not optimistic. Recently, the U.S. House of Representatives passed a bill banning the import of all goods from Xinjiang, which will continue to have an impact on future exports in the textile market. In addition, Vietnam, Bangladesh and Indonesia have lifted restrictions on the new crown epidemic, and cotton yarn production has continued to increase, which has also put great pressure on the domestic textile industry.
Taken together, the domestic cotton market will face greater pressure in 2021. However, the international epidemic is not over yet. my country’s epidemic prevention and control situation is good, which will have little impact on corporate production and is conducive to market competition. At the same time, there are still some textile companies with good sales. Cotton will continue to be purchased for production, which will have a positive effect on the cotton market. Currently, the market mainly sells carded 32S, 40S and combed 32S, 40S knitting and woven yarns, and orders are still good.
Overall, there is no need to be too pessimistic about the cotton market in the later period. Some textile companies are still optimistic about the future and have good purchasing enthusiasm. Cotton companies are also willing to raise prices, and cotton prices will remain volatile.
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