NO.1
Suzhou: The supply of cotton yarn exceeds the demand, and the yarn mills are operating at full capacity
The investigation revealed that from April to May, local cotton yarn mills were operating normally, with most manufacturers focusing on small orders and processing profits declining. Recently, due to the impact of the epidemic in India, yarn orders have returned to China. The supply of pure cotton yarn exceeds demand. Spinner mills have sufficient orders, equipment is running at full capacity, and processing profits remain at 1,500-1,600 yuan/ton.
At present, the local yarn market is mainly stable. Among them, the factory price of 16-spun carded ring spinning is 21,600 yuan/ton, and the factory price of 40-spun ring spinning is 29,000 yuan/ton. , orders have been scheduled until the end of July. In order to reduce operating costs, manufacturers’ lint stocks remain low, and the purchase-as-you-go strategy continues. The price of Xinjiang third-grade lint cotton purchased from peripheral warehouses is 16,100-16,300 yuan/ton. Local cotton yarn mills are operating relatively smoothly, and market purchases and sales are active.
NO.2
Jining: Sales of colored yarn are booming, and orders continue to increase
On June 28-29, the research team of the China Cotton Textile Industry Association visited key color spinning enterprises in Jining City, Shandong Province to investigate and understand the industry operation and green Development.
In the past month, with the fluctuation of cotton prices, the price of 3128B grade cotton is about 16,200 yuan/ton, and the cotton consumption of color spinning enterprises has remained at 15 The price of dye raw materials and dyestuffs is stable, and the cost of dyeing yarn has increased slightly. Judging from the production situation, the opening rate of colored spinning enterprises is relatively high, the order volume is maintained at about 2 months, yarn sales are stable, and yarn inventory is about 15 days; the employment of 100 looms operating in three shifts and two is at 70 The average age of employees is about 40 years old, and the average salary is 5,000 yuan/month, which continues to increase year-on-year in 2020; the average production electricity consumption is about 0.7 yuan/kWh.
According to research, since this year, colored spinning Yarn sales are booming, order volume continues to increase, sales revenue has increased significantly, and profit margins have remained at a stable level. As my country’s economic development momentum continues to improve and export orders grow rapidly, the shortage of shipping containers has not been alleviated, and shipping prices have increased significantly.
Enterprises follow the path of green and sustainable development, steadily promote green factory work, optimize product structure based on policy, develop various types of green design products, and help the country Carbon peak, carbon neutral.
NO.3
Domestic and domestic yarn prices are upside down, and cotton yarn imports are very strong
According to customs statistics, my country imported 168,700 tons of cotton yarn in May 2021, a year-on-year increase of 66.24%; from January to May 2021, my country imported 975,200 tons of cotton yarn, a year-on-year increase of 35.82% %; In 2020/21 (2020.9-2021.5), my country imported 1.672 million tons of cotton yarn, a year-on-year increase of 24.67%. This year, my country’s cotton yarn imports and cotton imports have grown in tandem (cotton imports from January to May 2021 increased by 70% year-on-year), and cotton textile and apparel production and sales have returned to pre-COVID-19 levels.
However, according to feedback from customs clearance cotton yarn traders in Guangdong, Jiangsu and Zhejiang and other markets, the quotations of C32S, C40S and JC32S, JC40S in India, Pakistan, Vietnam and domestic products have the same count. Cotton yarns of the same quality are basically in line with the standard and even have an upside price of 300-500 yuan/ton (some brand yarn price differences are even greater). For example, the price of C32S high-quality packaged bleached yarn in the light textile market in coastal areas is concentrated at 25500-25800 yuan/ton, and the Indian and Pakistani brands C32S packaged bleached yarn are priced at 25500-25800 yuan/ton. The yarn quotation reaches 26,000-26,200 yuan/ton.
Why do Chinese weaving companies and middlemen still actively inquire and purchase prices even when quotations are upside down? The analysis mainly has the following reasons:
1. Since 2021, driven by the continued low interest rates of the Federal Reserve and the successive introduction of strong economic stimulus packages by the US government, including India The rupee, Vietnamese dong and other currencies continue to depreciate against the US dollar, which is beneficial to cotton yarn exports;
2. Cotton yarn traders generally use the “high quotation, big discount” marketing method. It is not uncommon for a single transaction price to be 200-300 yuan/ton lower than the listed price. Although some traders offer higher prices, they allow various settlement methods such as credit purchases, acceptance bills, and domestic letters of credit;
3. C32S/C40S medium and high yarns in Vietnam, Pakistan, Indonesia and other countries are mainly high-grade, high-index US cotton/Brazilian cotton/Urban cotton/West African cotton (Australian cotton is also gradually opening up in Southeast Asia Markets in various countries), compared with domestic cotton yarn, the cotton grade is slightly higher (cotton yarn strength, CV value, number of neps and other indicators are better), and the weaving loss is also dominant;
4. The RMB has appreciated sharply in the first half of 2021. Domestic fabric factories and textile and clothing companies have bypassed cotton yarn exporters in Southeast Asian countries and large domestic import companies and directly placed orders with yarn mills in India, Vietnam, Pakistan and other countries, which is conducive to reducing prices. cost and improve the competitiveness of cotton textiles and clothing.
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