Recently, Zheng Cotton has been pulling back for about a week and continues to fluctuate around 17,500 yuan/ton. Raw material prices have fallen, and downstream spinning companies have a strong wait-and-see mood in purchasing.
A small textile company in Henan stated that the company’s raw material inventory has been maintained at 3 months. Starting from mid-to-late August, orders and sales have shown signs of weakening, and the market has a wait-and-see sentiment. pick up. Due to the continued rise in raw material prices, the cost of cotton yarn remains high. Downstream companies are highly resistant and procurement has slowed down.
At present, the price transmission of cotton yarn has encountered certain resistance. First, the price of cotton rose too fast in the early stage, and the price transmission needs to be gradually digested by enterprises. The price transmission of the back-end process is slower than that of the front-end; second, the price transmission of cotton yarn is relatively slow. It is the cotton price that has experienced a correction, which has intensified the concerns of enterprises about the future cotton price correction. In order to control market risks, they can only purchase cautiously.
It is reported that this enterprise is a spinning enterprise focusing on the domestic consumer market. Its products are sold to Henan, Nantong and other places. Its main products are combed and carded 40S pure cotton. Mainly yarn. Since the beginning of this year, the company’s production and sales situation has been very good. Even though there are sufficient orders and high profits, production has not reached full capacity, mainly because of the lack of production line workers.
The company stated that the current employment problem is a common problem faced by the industry, and the workshop working environment is difficult to attract young people. Although cotton yarn profits are now lower than in the first half of the year, they are better than the same period in previous years. </p
