At present, the overseas epidemic situation continues and the world economic and trade situation is complex and severe. Our country’s achievements in coordinating epidemic prevention and control and economic and social development have been continuously expanded and consolidated. The quality and efficiency of economic development have steadily improved, endogenous power has gradually increased, and people’s lives have continued to improve. The economic operation shows a sustained and stable recovery trend. In order to track the operation status of cotton textile enterprises in a timely manner and understand the changes in the cotton textile market, the China Cotton Textile Industry Association recently conducted a large-scale survey of major cotton textile-related markets in the country for the 22nd time. The following is the information of local markets, cotton textile and related enterprises Reflected situation:
Raw material market
Xinjiang cotton: self-reserve After the cotton round was restricted to textile cotton companies, cotton prices fell, but the overall decline was not significant. The current delivery price of Xinjiang grade 3128 machine-picked cotton is 18,000 yuan/ton, which is still higher than at the beginning of the month. New cotton is about to be launched, and there is a strong rush to harvest it. There is little change in the procurement of textile companies. Consumption in Europe and the United States is recovering, some overseas orders are ahead of schedule, and the domestic market is recovering steadily. In the short term, the rush to harvest cotton on the supply side has given strong support to cotton prices. Ultimately, it depends on the downstream transmission situation.
Jiangxi Viscose: The viscose staple fiber market has been under certain pressure recently, and cotton textile companies are generally willing to purchase. Affected by the repeated epidemics, inventory replenishment is more cautious, and the downstream market has cooled down. The current price of viscose staple fiber is mostly 13,000-13,300 yuan/ton. Manufacturers have expectations for the “Golden Nine and Silver Ten” market, but whether they can materialize depends on terminal demand.
Jiangsu polyester staple fiber: Affected by the drop in crude oil prices, the price of polyester staple fiber continues to be low, with the current price fluctuating between 6,900-7,000 yuan/ton. The production load of enterprises remains low, at about 85%, and there is a certain inventory of short fiber. The market has a strong wait-and-see attitude, production and sales are weak, and downstream purchases are urgently needed.
Yarn Market
Jiangsu Vortex Spinning Yarn: Enterprise Production normal. With the decline in raw material prices, vortex spinning yarn sales have weakened and prices have fallen. Downstream players have taken a wait-and-see attitude and are cautious in purchasing. Raw material prices fluctuate greatly, and companies are not optimistic about the market situation in the future.
Shandong cluster pure cotton low-count yarn: the company’s operating situation is generally stable. Cotton prices have strengthened recently, and the factory price of cotton in textile companies is about 19,000 yuan/ton, which is at a historical high. Affected by rising cotton prices, cotton stocks of textile companies have become polarized. The price transmission of cotton yarn is sluggish. The price of C40S carded cotton yarn reaches 29,500 yuan/ton, and downstream customers do not have high recognition of the price increase of cotton yarn. The market transactions are relatively cold, and the profit margins of textile enterprises are further compressed. The order situation is average, downstream customers are not very willing to chase prices, the operating rate remains at a high level, and inventories are generally low. Some companies predict that cotton and cotton yarn will remain at high levels in the future market.
Jiangsu high-count yarn: The current market performance is acceptable, production and sales are relatively stable, and product inventory is low. We are becoming more cautious in purchasing raw materials. With the traditional peak season approaching, we expect raw material prices to stabilize in the future to ensure relatively stable profits. Domestic consumption is gradually improving. Considering the recent fluctuations in raw material prices, we remain on the sidelines for the later market.
Shandong Differentiated Yarn: The company is currently running well and operating at full capacity. Most orders are scheduled until mid-September, and a few long-term orders are scheduled until the end of October. The price of differentiated yarn products has been adjusted back compared to before. Due to the small amount of cotton used, enterprises mainly purchase cotton for small orders for rigid needs. In order to reduce the uncertainty of cotton price fluctuations, companies have reduced their cotton blended products. After the early yarn price increase, downstream weaving mills were less accepting and cautious about the market outlook.
Peixian viscose yarn: The viscose yarn market has recently been slow in purchasing and selling, prices are weak, and all varieties have fallen slightly. Currently, the inventory pressure of enterprises is not great, at about 20 days, so The range of price reductions is limited. The price of R30S is in the range of 17,700-18,600 yuan/ton, and the company’s startup rate still maintains the previous level. Shipments in the downstream weaving market are slow, new orders are few, production and sales pressure is increasing, and inventories have increased. The market is increasingly worried about the market outlook. If the price of viscose raw materials falls in the later period, yarn prices are expected to be lowered accordingly.
Henan pure cotton yarn: Transactions in the pure cotton yarn market have slowed down, downstream wait-and-see sentiment is heavy, procurement is cautious, prices have fallen, it is more difficult for companies to receive orders, and equipment operation rates have increased It is about 60% to 80%, and the current inventory of textile enterprises is still at a low level. Enterprises have certain confidence in the third quarter, but due to the current high inventory of traders, the price of pure cotton yarn may be lowered in the long run.
Jiangsu colored spinning yarn: The colored spinning yarn market has been operating well recently. Enterprises are producing at 100% full capacity, supply is still tight, customers are still highly motivated to inquire, and orders have been scheduled. to two months later. This market is expected to last at least 2 months. Affected by foreign epidemics, futures markets and macro policies, there are many market uncertainties, and companies are cautiously optimistic about the market outlook.
Fujian non-cotton yarn: Recently, the prices of raw materials and yarns have been relatively stable. The prices of raw materials have dropped slightly this week, the prices of viscose yarns have been relatively stable, and the prices of polyester yarns have decreased. Regarding the upcoming traditional market peak season, companies believe that the good momentum since this year will continue, with a significant improvement compared with last year, and market confidence is strong.
Xinjiang pure cotton yarn: At present, the factory is operating in good condition, with less product inventory and better gross profit margin, but it is lower than before. The sales of pure cotton varieties maintain a good momentum and the sales price is higher. The sales form of vortex spun viscose varieties is poor and the price is lower.Market demand is weak. At present, the factory basically does not accept long-term orders, and prices follow the market. Downstream customers’ acceptance of yarn prices has declined, and the factory’s cotton inventory is at a reasonable level, so purchases are urgently needed. Enterprises believe that it is difficult to predict the late-stage market, and the key to market trends depends on the purchase price of new cotton.
Guangdong cotton yarn: The transmission of raw material prices is not smooth, and downstream weaving does not accept yarn price increases. In addition, August is the traditional off-season for the industry, and production and sales have been weak recently. Regarding the market outlook, companies are taking a wait-and-see attitude.
Fabric Market
Jiangsu Gray Fabric: The current operating rate is about 95% , some enterprises’ multi-arm models have gradually experienced empty platforms. Raw material prices continued to rise in the early stage, but have fallen slightly recently. Currently, orders are on the machine for about 10 days, and follow-up orders are obviously insufficient. Affected by the epidemic, the original order fairs of various brand companies have been postponed and they dare not place orders in advance. Other non-brand customers are in a wait-and-see stage and are paying attention to the trend of yarn prices. Squeezed by spinning mills and back-end customers, weaving mill labor costs continue to decline, finished product inventories continue to rise, and the end customer market is generally weak. Orders in September are still not optimistic.
Guangdong Denim: Recently, the price of denim yarn has remained high. The price of pure cotton OE10S is about 15,500 yuan/ton. The price transmission is still limited, and the shipping price of foreign orders is still relatively high. High, sales profit is low. At present, the operating rate of enterprises is above 90%, and orders are showing slight signs of improvement. With the correction of cotton prices, the price of cotton yarn has dropped slightly. Quotations between companies and customers are very cautious. Companies have increased their research and development efforts to make full preparations for the “Golden Nine and Silver Ten”. At present, shipping capacity is still tight, resulting in high shipping costs in the short term, and export orders will remain marginally profitable.
Lanxi gray fabrics: raw material prices are still high, weaving costs are increasing, cotton yarn prices are rising and fabrics are difficult to rise, and downstream customers are less willing to accept fabric prices, resulting in gray fabric prices being inverted and finished product shipments Inventories have been significantly reduced, inventories are high, and some companies have taken production restriction measures. As the impact of the epidemic weakens, the traditional peak season of the “Golden Nine and Silver Ten” can still be expected, but it may be lower than expected in previous years, making it more difficult for companies to make profits.
Jiangsu yarn-dyed fabrics: The market is overall stable, companies are basically operating normally, downstream demand is weak, and new orders are insufficient. In the past half month, upstream yarn prices have been high, and companies are not very willing to purchase and are more cautious in accepting orders. Since it is difficult to increase fabric prices, corporate profits have shrunk. As the “Golden September and Silver October” approaches, companies hope that the market will improve in September.
Hubei pure cotton cloth: Currently, the production is running at a low speed to ensure production. The peak season is approaching, but orders have not improved significantly, and product inventory has begun to accumulate. In order to ensure shipments are sold at a fair price, profits are squeezed by both costs and market conditions. The epidemic situation abroad is still severe. Although the consumer market has improved, there is still a lot of room for improvement in the total volume. We hope that the “Golden Nine and Silver Ten” will arrive as scheduled and companies can take a breather. </p
