According to feedback from cotton yarn traders in the light textile markets in Guangdong, Jiangsu and Zhejiang and other places, since late May, except for medium-count yarns such as OE16, OE21S, OE26S, steam-spun yarns, and C40S, C32S, medium- and high-end cotton yarns, the price inquiry and shipment have been surprisingly poor. The transactions of low-count OE yarns, low-count ring-spun yarns and high-count yarns of 60S and above have slowed down compared with early and mid-May. Some cotton yarns with high cotton grades and strong quality indicators but high quotations have become more difficult to ship.
A medium-sized yarn mill in Anhui said that in the past week or so, the enthusiasm of downstream weaving, fabric and clothing customers to inquire and place orders has cooled down, and C26, C32, and C40S cotton yarns have once again There is a phenomenon of overstocking, but except for the quotation of OE yarn, which has been slightly reduced by 100-200 yuan/ton, the ex-factory prices of other carded and combed yarns have remained at the level of early May; however, with the Zheng Cotton CF2109 contract effectively falling 15,500 yuan/ton. The calls from cloth mills and traders for yarn mills to reduce prices and offer profits have obviously increased. The situation of cotton yarn prices “only rising with Zheng Cotton but not falling with Zheng Cotton” is expected to be broken.
According to a survey of several small and medium-sized cotton spinning mills in Zibo, Shandong, Zhengzhou, Henan and other places, the situation of receiving orders and placing orders in the past half month has improved compared with before mid-May. There is a high proportion of “short, small, and urgent delivery” orders, while medium and long-term orders are relatively small; although spinning profits are still relatively high, raw materials such as cotton and polyester staple fibers, as well as cotton yarn and gray fabric finished products, have not accumulated enough inventory pressure. Not big, but as ICE’s main contract fell below 82 cents/pound and Zheng cotton CF2109 opened the 15,500 yuan/ton mark, it became increasingly obvious that domestic and foreign purchasing companies and retailers significantly lowered prices and order quantities. Large-scale textile and clothing Enterprises are gradually overwhelmed, and orders for outsourcing and entrusted processing continue to decline.
It is understood that as the U.S. government tightens its enforcement of the ban on Xinjiang cotton product imports, not only international textile and clothing brands and buyers are becoming increasingly cautious in placing orders, domestic and foreign-oriented Enterprises and processing plants have also taken many measures to reduce risks (including order rejection, abandonment, etc.). The U.S. Customs Department has stopped the import approval of a batch of Uniqlo shirts. However, factors such as the recent sharp appreciation of the RMB, the surge in sea freight, and tight shipping spaces have all The enthusiasm of Chinese textile and garment enterprises in accepting medium and long-term orders from Europe, the United States, Japan and other countries has continued to cool down; in addition, the orders returned from India, Bangladesh and other countries are mainly low-value-added products such as home textiles and bedding, and the profits of Chinese enterprises are low or even ” “Losing money and making money”, therefore, the so-called stimulating effect of the return of orders from Southeast Asia has gradually faded as the epidemic in India and other countries has been effectively controlled and textile and clothing companies have quickly resumed work and production. </p
