From a survey of some textile companies in Shandong, Henan, Hebei and other places, despite the oscillation and diving of Zheng cotton contracts this week, the epidemic prevention and control and power rationing in Guangdong, and the off-peak power consumption have caused weaving and weaving in some coastal areas, Fabrics and clothing companies have been suppressed in accepting orders, arranging orders, and operating rates. However, the current ex-factory quotations and transaction prices of cotton yarn remain stable. Textile companies are not willing to take the initiative to lower yarn prices and promote order acceptance, and the sentiment of raising prices and selling is still there. Have a certain upper hand.
Traders in the light textile market in Jiangsu, Zhejiang and other places reported that since early to mid-June, the cotton textile industry has entered the traditional off-season. Although some enterprises above designated size and some yarn varieties have “off-season problems” “Light” and tight order schedule, but the overall downstream domestic and foreign trade orders have slowed down significantly compared with March/April/May, which is much quieter than the booming production and sales of chemical fiber filament, weaving and chemical fiber textiles and clothing. Therefore, middlemen in the light textile market are not very enthusiastic about short-term inquiry and stocking up, and they mainly focus on digesting inventory and clearing stocks.
Several cotton spinning enterprises below designated size stated that although OE yarns and low- and medium-count ring spinning yarns have continued to accumulate in stock since late May (OE26S, OE32S and other high-count air-flow cotton yarn splicing The order situation is good; the supply of C60 carded cotton yarn is tight), but because the spot price of cotton has been significantly lower than that of Zheng cotton and considering issues such as order execution in April/May, the yarn price has not been lowered following the phased decline in the internal and external cotton market. plan. On the one hand, cotton spinning mills continue to reduce the risk of working capital being tied up and broken through measures such as “reducing raw material inventory and finished product inventory”. Therefore, although cotton yarn has gradually accumulated in stock in the near future, it is still below the warning line. Some cotton spinning mills The factory plans to look for and expand opportunities for Zheng cotton yarn futures operations; on the other hand, considering that the 700,000-ton sliding tax cotton import quota is expected to be issued before mid-July and the main ICE cotton futures contract has once again fallen below 85 cents/pound, some scale The above-mentioned cotton spinning mills have increased their operations of overdrafting quasi-tax quotas and locking in high-quality foreign cotton in advance. The LC90 day will help alleviate the financial pressure on small, medium and micro enterprises under the short-term tightening of liquidity.
As for whether orders for cotton yarn and gray fabrics in June and July can get out of the off-season ahead of schedule, small and medium-sized cotton spinning mills are generally skeptical and cautious. The following points can be briefly summarized: First, the epidemic situation in Southeast Asian countries Gradually coming under control, orders for cotton textiles and cotton clothing from Europe, the United States, Japan and other countries will flow back to India, Bangladesh, Pakistan and other countries; secondly, the RMB exchange rate fluctuates widely, and cotton textile and clothing companies are under greater pressure to lock in foreign exchange and regulate risks; The third is that the retaliatory rebound in textile and clothing consumption triggered by the epidemic in Europe and the United States has gradually disappeared, and the market has returned to rationality; the fourth is that the rise in bulk commodities, skyrocketing sea freight, container shortages, etc. have led to an increase in orders received by cotton spinning and clothing companies with meager profits. Fifth, it is relatively difficult to improve Sino-US and Sino-European relations in the short term, which may further restrict and suppress textile and clothing companies from accepting orders and delivering goods. </p
