According to feedback from several cotton spinning mills in Shandong, Henan, Jiangsu and other places, inquiries and transactions for OE8S-OE21S cotton yarn have gradually picked up since early April compared with March. The shipments of C32, C40S and high-count cotton yarns are relatively slightly worse; the shipments of C10S-C16S slub yarns and big-belly yarns have also improved, but overall, the yarn mills are still in a slightly overstocked state and still need to wait for the various changes in the industry chain. Redistribution of link profits and solving the problem of “intestinal obstruction”.
A yarn mill in Dezhou, Shandong Province said that pre-sale orders from January to February are almost completed. Although the proportion of C40S and above cotton yarn in new orders is low, it The quotation is much stronger than that in early and mid-March. In order to reduce inventory and liquidity risk, the company has recently not only reduced the grade and quality of cotton procurement, but also accelerated the transformation of product structure to “reduce high expenditure and increase low expenditure” to strive for We will increase the number of orders for low-end products without reducing or suspending production.
From the survey, the reasons for the recent slight improvement in the production and sales of low-count yarn can be summarized as follows:
Firstly, After entering late March, some orders for the 2021 autumn and winter in the domestic market have been placed one after another. The raw materials are mainly low-count yarn and coarse-count yarn, and the products are mostly medium-thick fabrics, such as jeans, thick sweatshirts, bedding, towels, etc.;
Secondly, traders in the light textile markets in Guangdong, Jiangsu, Zhejiang, Shandong and other places currently have needs to replenish their warehouses and store yarn. On the one hand, summer orders have ended, and consumer demand for cotton yarns with counts of C40S and above has weakened; coupled with the low inventory of low-count yarns after the Spring Festival; on the other hand, there are concerns that the Xinjiang cotton incident will affect the export of mid-to-high-end textile and clothing products in Europe and the United States;
Third, as the epidemic situation in Europe has differentiated, some countries with mild epidemics have announced the gradual relaxation of more stringent epidemic control measures, and the textile and clothing export contracts that were postponed or suspended in March have been activated again ( In order to reduce risks, most domestic companies have generally raised contract guarantees by 5%-10% since 2021);
Fourthly, in the past two months, production areas such as India and Pakistan have The quotations of cotton yarns continue to rise sharply (including open-end spinning and low-count ring spinning), the price difference between domestic and foreign cotton yarns has narrowed, the competitiveness of imported yarns has significantly declined, and the enthusiasm of domestic traders and cloth mills to sign contracts to purchase imported low-count yarns has continued to cool down; In addition, most yarn mills in India and Pakistan require buyers to place orders 2-3 months in advance. Therefore, since March, the impact of imported low-count yarns on domestic yarns has weakened, and domestic yarns have gradually seized the domestic market share of cotton yarns from India and Pakistan. </p
