Recently, the main contract of Zheng Cotton has continued to consolidate in the range of 21,500-22,000 yuan/ton, waiting for guidance from the market, policies, and external news. In 2021/22, the fluctuation range of Xinjiang cotton spot quotations has narrowed, and the two sales methods of basis purchase and fixed price coexist. The curtain of cotton production and sales this year is slowly opening.
In contrast to the stabilization of reserve cotton transaction prices, domestic cotton yarn export prices and light textile market transaction prices have continued to fall since mid-November. The price adjustments of some cotton spinning mills above designated size are relatively small, but the bargaining space for old customers and large customers continues to expand, and negotiated transactions have become the main mode of short-term shipments.
A medium-sized textile company in Yancheng, Jiangsu Province said that the current orders for high-count and high-match cotton yarns such as JC40S-JC60S can be supported until mid-December, but ring spinning and OE yarns of 32S and below are not available. The order decline is quite obvious, and it is somewhat difficult to maintain an opening rate of more than 85% in the short term. The profit and added value of new fiber yarns and differentiated fibers are acceptable, but the market capacity is relatively small, and it is not suitable for adjusting production capacity. In the past half month, polyester-cotton yarn and pure polyester yarn consumer terminals have had a strong wait-and-see atmosphere, and transactions have been deserted.
According to investigations, as some cotton textile mills continue to purchase, the cost of spinning has increased significantly, resulting in a decline in profits of textile companies, and production companies are under pressure to accept orders and deliver goods. Entering November and December, most cotton textile companies need to pay production costs, and capital flow is generally tight. Companies have reduced inventories of raw materials such as cotton and polyester staple fiber, and at the same time increased sales and collection of cotton yarn, polyester-cotton yarn and gray fabrics. . </p
