At present, the overseas epidemic situation continues, and the world economic and trade situation is complex and severe. my country’s achievements in coordinating epidemic prevention and control and economic and social development have been continuously expanded and consolidated. Economic operations have continued to recover steadily, with stability being strengthened and stability improving. The performance of the domestic market Showing strong resilience and vitality. 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 across the country for the twentieth time. The following is the reflection of local markets, cotton textile and related enterprises Situation:
Raw material market
Xinjiang cotton: Recently, the cotton price has exceeded the 17,000 yuan/ton mark, and Xinjiang cotton is growing normally. Entering the budding stage. After the rapid rise in cotton prices in the spot market, textile companies have been cautious in purchasing. Since late July, cotton spot transactions and shipments have been average, and reserve cotton has been favored. The domestic epidemic situation has rebounded, U.S. inflation has risen, market concerns have increased, and short-term cotton prices have entered a critical period of adjustment.
Jiangxi Viscose: As cotton prices continue to rise recently, the previous price difference between viscose and cotton has a recovery logic. The industry is generally optimistic. The price has increased recently, and the price has increased. At 13,000-13,000 yuan/ton, some supply is tight. Driven by cotton yarn, the trend of viscose yarn is also optimistic. We are optimistic about the market outlook. Whether the market can continue to improve in the future requires attention to downstream demand.
Jiangsu polyester staple fiber: The current price of polyester staple fiber continues to rise, at around 7,200 yuan/ton. Crude oil inventories fell, international oil prices hit a two-week high, factory quotations for polyester shorts continued to rise, shipments were discussed, and trading volumes were high and low. The company’s operating load is about 90%, and there is a certain inventory of short fiber. Downstream companies just need to purchase, and demand continues to improve.
Yarn Market
Jiangsu Vortex Spinning Yarn: The market has continued to improve recently, and enterprise production Normally, the main varieties are performing well, orders are sufficient, and companies are optimistic about the later market.
Shandong cluster pure cotton low-count yarn: the operation of the enterprise is relatively stable. Recently, Zheng cotton futures have continued to strengthen, and spot prices have continued to rise. The factory price of cotton in textile companies is 18,500-19,000 yuan/ton, which is at a historical high. The price transmission of cotton yarn is sluggish. The price of 40-count pure cotton carded yarn reaches 29,000 yuan/ton. Downstream customers are not willing to purchase, and the profit margins of cotton yarn companies are compressed. It is expected that cotton and cotton yarn will remain high in the market outlook.
Jiangsu high-count yarn: Recently, the market has been affected by weather factors and production operations have basically returned to normal. Due to the off-season, orders have decreased slightly compared with the previous period. Overall, the benefits are acceptable. Affected by the rebound of the epidemic, exchange rate fluctuations, and typhoons and storms, we are cautious about the later market.
Shandong differentiated yarn: Enterprise orders have been scheduled to the end of August, mainly for domestic sales, with a 100% opening rate, no product inventory, and raw material inventory maintained for about a month. Recently, raw material prices have risen, and products have followed suit, but the market response has been muted. Due to factors such as trade friction and repeated epidemics, companies are not optimistic about downstream demand. Although the current yarn market is very good, they are cautious about the overall market in the second half of the year.
Peixian viscose yarn: Driven by raw material prices, the price of viscose yarn has increased steadily, but the downstream acceptance is average, rigid demand procurement is the main focus, and the market performance is flat. Corporate profits are better. At present, the company’s operating rate remains high, and product inventory is within one month. Sales in the downstream gray fabric market have increased, and prices have risen, but the overall increase is not as high as that of raw materials. It is expected that there will be room for growth in the future.
Henan pure cotton yarn: The current market transactions are stable. There are some fluctuations due to heavy rains, but only short-lived. After the heavy rain, the price of yarn increased, the trading volume was not large, and the shipment of products slowed down. Rising raw material prices have a limited effect on yarn prices. It is expected that raw material prices can be smoothly transmitted to the downstream, and demand may start in the fourth quarter.
Jiangsu colored spinning yarn: Since this year, the colored spinning yarn market has maintained a good operating trend. The current order inquiry situation is good, and the order shipments will be scheduled for two months. The yarn price has increased at the same rate as the raw materials. The price of differentiated colored spinning yarn is above 30,000 yuan/ton, and we are optimistic about the future market.
Fujian non-cotton yarn: Fujian has not been affected by the typhoon. The recent production and operation situation is relatively stable, with an opening rate of 100% and the order situation is relatively stable. It is expected that the current trend will continue for some time to come.
Xinjiang pure cotton yarn: Although it has been in the off-season recently, the market is “not slow in the off-season” and is significantly better than in previous years. Textile companies have sufficient orders on hand, smooth shipments, low inventories, and good profits. The sharp rise in cotton and cotton yarn futures reflects that the upstream and downstream are relatively optimistic about the later period. Now that July is coming to an end, some trades have begun to stock up for the “Golden September and Silver Ten”, and a new round of orders is about to open. It is expected that the spot price of cotton yarn will continue to be strong.
Guangdong cotton yarn: Market purchases and sales are basically stable, corporate orders are acceptable, and there are no obvious fluctuations. It is expected that the rebound of the epidemic will have an impact on production and sales.
Fabric Market
Jiangsu Gray Fabric: Current operating rate is 95%, raw material and yarn prices are rising , most yarn mills require payment first and then schedule delivery. At present, there are insufficient orders for cloth products, and the labor costs of weaving mills are squeezed by both yarn mills and back-end customers. The profit margins are getting smaller and smaller, and some orders have already incurred losses. Orders for home textile products continue to be flat. Orders have been placed on machines for about 10 days, and jacquard orders for some models have begun to be empty. Finished goods inventory is about 45 days, showing continuousUpward trend. Orders in the downstream market have become sluggish, and the situation is expected to remain pessimistic in the next two months.
Guangdong denim: As cotton prices continue to rise recently, cotton yarn prices are running at high levels. The current OEC 10-count yarn price is 15,320 yuan/ton. Indigo dye prices remain stable, with an opening rate of more than 95% and orders. Inquiries increased. Affected by the rapid rise in raw materials, fabric price increases were limited and profits were lower than expected. The rapid rise in raw material prices has pushed up production costs, and the lag in price transmission has led to a slight decline in the fabric order signing rate. Small batches and multiple varieties are mainly used. It is expected that profit margins will be difficult to rise to expectations in the short term.
Lanxi gray cloth: The prices of cotton and cotton yarn continue to rise. The price increase of gray cloth is small, and the price transmission is slow. Downstream orders have not improved significantly. Most weaving mills focus on market sales and shipments. In general, inventories are generally still high. The machine startup is basically normal. If the yarn supply continues to be tight in the future, the possibility of shutdown cannot be ruled out. If a company buys yarn now and produces cloth now, it basically makes no money and the profit is low. The trend of raw materials in the later period is bullish. If the yarn price can maintain the current level or rise weakly, the price will achieve stable transmission, and gold, nine and silver can be expected.
Jiangsu yarn-dyed fabrics: The yarn-dyed fabric market as a whole continues to be weak, the opening is basically normal, and the capacity utilization rate has declined. Affected by multiple factors such as sharp increases in upstream raw material and yarn prices, fluctuations in the RMB exchange rate, and the traditional off-season, companies are cautious in accepting orders, resulting in insufficient orders, increased costs, and squeezed profits. Prices of some products increased slightly, but customer acceptance was limited. Regarding the market outlook, many companies are taking a cautious wait-and-see attitude.
Hubei pure cotton cloth: Cotton prices have been rising since the start of the reserve, costs continue to rise, and there is basically no profit. There is a strong wait-and-see mood in the downstream, and there are inquiries but few orders, most of which are traders. Currently, the opening rate is lowered and product inventory has increased. Cotton prices are expected to continue to remain strong, and the follow-up market remains to be seen.
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