In November, cotton spinning raw materials mainly fluctuated at high levels. As of November 5, 2021, CY C32S pure cotton yarn reported a closing price of 29,300 yuan/ton, which was the same as the same period last week.
The cotton market has not fluctuated much in recent days, but due to the continued surge in the early stage, it is still At a nearly 10-year high. As of last weekend, the CC3128 cotton index closed at 22,268 yuan/ton, down 33 yuan from the same period last week. The purchase price of new cotton in Xinjiang has declined, and the spot price of cotton yarn has basically remained stable but declining. In terms of profits, current spot profits of textile companies are at deep losses, with a loss of almost 800 yuan per ton. The current purchasing and sales volumes of textile companies in the market are not too large. According to feedback from textile enterprises in Henan, the cotton in the factory is basically more than one month old. The price of new cotton is too high, so new cotton should not be purchased unless necessary. New cotton transactions in the market are currently mainly for rigid demand purchases, and textile companies mostly allocate state reserves and use early-stage cotton stocks.
In terms of textile companies, since August, India, Vietnam, Pakistan and other countries have started their economies despite the disease, and the cotton spinning industry has recovered rapidly. A large number of orders from Europe, the United States, the Middle East and other countries have flowed out of China, not only low-end and low-end Orders are “ebbing”, and high-end and high value-added orders are also decreasing; in addition, processing orders for enterprises above designated size are also showing a continued decrease. In the downstream sector, with the “resurgence” of the new coronavirus in China last month, many places have stepped up epidemic prevention efforts, and the impact on textile companies’ orders, production, transportation and other links has become increasingly prominent. On the other hand, as the end of the year approaches, all major textile companies will enter the settlement stage, and cash flow pressure will suddenly increase. Therefore, “increasing revenue and reducing expenditure” has become the consensus of current textile enterprises. According to a trader in Jiangsu and Zhejiang areas, although there has been an increase in inquiry customers recently, and some customers have even inquired multiple times, due to problems such as excessive prices, downstream customers are still more cautious and do not purchase large quantities. They only purchase small quantities for rigid needs. host. Most textile companies’ current orders are mainly small batches and bulk orders, and there are currently no large orders in the market. The price of yarn is also negotiated on a case-by-case basis. At present, the market is mostly dominated by low-price transactions, and yarn mills set prices based on cost. According to the feedback from weaving mills in the market, there are currently a small number of early spring orders, so there will be purchasing demand. However, the price of cotton yarn is too high, and the dyeing fee has increased, and the sales pressure of gray fabrics is still very high. At present, yarn traders and textile companies report that although there are orders, the volume is too small and unsustainable. As of November 5, the average daily inventory of finished cotton yarn in textile companies was about 22.6 days.
New orders from weaving mills have increased slightly recently. However, due to the high level of raw materials, weaving mills are cautious in stocking up, so weaving mills maintain the purchase-to-order policy. Procurement mode, mainly a slight increase in purchase volume. As of last weekend, the expected average daily inventory of cotton yarn in weaving mills was around 10.1 days, and the operating rate of cotton gray fabrics was around 49%, both rising slightly. However, through research, most textile mills believe that there will be no big market trends between Double Eleven and the Spring Festival this year. Mainly due to high and volatile raw material prices, downstream traders are worried about large losses caused by a sharp drop in the future, so they have low willingness to stock up. In terms of regions, power restrictions were relaxed in various regions in November, and the operating rate of textile mills rebounded. Power cuts have been basically eliminated in Guangdong, Jiangsu, Shandong and other regions, and the operation of textile mills has basically not been affected. The power cuts in Lanxi, Zhejiang, have been tightened. The power cuts lasted for 9-10 days. The power was cut off from 6:30 to 22:30 and production started from 22:30 to 6:30 the next morning. The overall operating rate dropped by about 20%. Weaving mills in other regions are currently maintaining production and starting up smoothly. Overall, the starting rate of weaving mills has rebounded. Similarly, with the recovery of production in various regions, inventories in textile mills have gradually increased. As of the 5th, the average daily closing price was around 31.7 days.
In general, with the relaxation of the power restriction policy, the start-up of both upstream and downstream industry chains has increased slightly. And under the support of the price of cotton raw materials, it is difficult for the middle and lower reaches to see a sharp decline. However, due to the “double attack” of the recurrence of global epidemics and the pressure on capital flows at the end of the year, it is difficult to expect big market trends in the market in the near future. </p
