According to feedback from cotton yarn traders in Guangdong, Jiangsu and Zhejiang, etc., the enthusiasm of cloth factories, fabric and clothing companies for inquiry and delivery of goods has picked up slightly in recent days compared with mid-to-late March. As the contract price of Zheng Cotton CF2105 continues to be at 15,000 yuan / ton around the consolidation and stabilization, not only the quotations of OE16S-OE21S open-end spinning, carded and high-count combed yarn gradually stopped falling and stabilized, but also the confidence of textile enterprises and consumer terminals began to bottom out and rebound.
Several small and medium-sized yarn mills in Jiangsu, Henan and other places said that they have received a small number of new orders since late March, mainly C40S, C32S, C26S high-end yarns, entering 4 In the first and middle of the month, the willingness of weaving factories in coastal areas to replenish their stocks continued to pick up. But overall, the cotton yarn, gray cloth, fabric and other industrial chains are in a state of gradual recovery, and there has not been a big improvement. Enterprises are still cautious in placing and receiving orders, and replenishment is mainly based on rigid needs, and it is still necessary to trade time for space. However, the power of the “late spring cold” is gradually weakening, and the pressure from the terminal to the midstream and upstream sectors such as cotton yarn and cotton continues to ease.
From the survey, the reasons for the stabilization and recovery of the middle and lower reaches of the industrial chain in April can be summarized as follows (the recovery of air yarn prices and volumes is still not obvious):
First, autumn and winter orders for the domestic market have been successively issued in April. Although the orders are still tentative and the contract prices are relatively low, for gauze and fabric companies, The feeling in words is that “spring is coming”;
Second, the correction of cotton yarn is basically in place, giving up part of the profit space for downstream weaving factories, fabrics, clothing and other links, and the industrial chain has begun Straightened out, the power of terminals to receive and arrange orders has been restored intermittently. Judging from enterprise feedback, the CF2105 contract of Zheng Cotton has fallen by about 2,000 points since late February, and cotton yarn quotations from cotton spinning mills have generally been reduced by 1,500-2,000 yuan/ton;
The third is Zheng Cotton The main contract has stabilized at 14,700-15,100 yuan/ton, with fluctuations significantly weakened. Cotton futures prices have stabilized. Costs of cotton yarn, gray fabrics, fabrics, etc. are relatively controllable, and terminal orders have bottomed out;
Fourth, contracts that had been delayed and extended delivery due to the outbreak of the third wave of COVID-19 in Europe and tensions between China, the United States, and China and Europe have started slowly again (some order quantities have “shrunk” or been transferred to Southeast Asia). It has formed phased support for cotton, yarn and other markets. </p
