According to feedback from cotton yarn traders and cotton spinning mills in Jiangsu, Zhejiang, Guangdong and other places, orders for 16S-40S domestic knitted yarn have continued to rebound recently. Inquiries and transactions are significantly better than woven yarns, and knitting yarns and woven yarns of the same count have continued to rebound. The price difference has even widened to 300-500 yuan/ton; however, the price of imported knitted yarn from Uzbekistan, Vietnam, Indonesia and other origins is seriously inverted with that of domestic yarn, and cotton textile and clothing companies are more cautious in accepting traceability orders from the United States/European Union, etc. The impact continues to be weak and even somewhat deserted shipments.
It is understood that the operation rate of circular knitting machines in Guangdong, Fujian, Zhejiang and other places has rebounded since mid-July. Some knitting companies have received orders for knitting underwear, vests, T-shirts, bottoming shirts, leggings, children’s clothing, towels, socks, gloves, etc. Cotton fabric orders include domestic sales orders, and some are exported to ASEAN and Southeast Asian countries (non-traceable orders). However, high value-added and high-profit orders such as high-end singlets and fine-size poplin are relatively rare, and most orders come from “bulk goods”.
A weaving company in Zhejiang said that due to the sharp plunge in domestic cotton spot prices since mid-June, the “paper profits” of most cotton spinning companies have been significantly improved, especially for some small and medium-sized enterprises that buy as they are used and have low raw material inventories. Spinning profits Enthusiasm for timely cashing is high, and vigorous sales of goods and quick destocking operations are common. There is a lot of room for profit and discounts on real orders. In recent July and August, orders for T-shirts, leggings, children’s clothing, socks, gloves, etc. have been placed one after another ( Mainly domestic sales orders), knitting companies in coastal areas are doing their best to receive orders to reduce the risk of production reductions and suspensions due to lack of orders in the third quarter of 2022; on the other hand, they are increasing inquiries for knitting yarn raw materials and replenishing inventories. Lower the purchase price of cotton yarn and reserve profit margin for yourself.
The company stated that at present, the transaction price of cash spot purchases in the cotton yarn spot market is lower than the 1-3 month accounting period, and it is normal for acceptance bills to be paid more than 300 yuan/ton. Several weaving and fabric companies have judged that as of now, Christmas and Easter orders from Europe and the United States in 2022 have been significantly reduced compared to previous years, and almost 100% of export orders are traceable orders (requiring processing companies to issue “non-Xinjiang cotton” certificates) ; Regardless of whether imported cotton yarn is used for spinning or directly imported cotton yarn, export orders may face risks. Therefore, medium and long-term and large domestic sales orders have become the focus of attention and competition for enterprises, and the slow start of demand for knitted gauze and knitted clothing is a A good sign, worth looking forward to.