Textile Mill's Good Days Are Gone. How Should The Market Respond To This?

It is understood that since entering the middle of May, many textile factories feel the pressure obviously. On the one hand, the auction price of cotton reserves has been kept at a high level. The higher the trend of the auction, the higher the cost of raw materials for spinning enterprises. On the other hand, the sale of downstream cotton yarn is not as good as that of the previous stage, but it has become slow.

Because most cotton mills rely on cotton reserves for most cotton mills at present, and cotton auction prices remain high, the cost of cotton picking up is rising.

In particular, the reserve price of Xinjiang cotton is limited because of its high cost performance plus limited daily delivery, resulting in intense competition and high paction price.

According to the head of a textile factory who has bid for more than 2000 tons, even now the quality of Xinjiang cotton is poor, the auction price will be above 15000 yuan / ton, and the cost of buying cotton will naturally rise.

On the contrary, sales of downstream cotton cloth have not improved. The sales price of cotton yarn has been loosened recently, and the profit margins of enterprises have been compressed.

At present, the price of 40 cotton combed pure cotton yarns is 23900-24300 yuan / ton, 200 yuan / ton lower than that in the first half of this month, 32 cotton combs sold at 22900-23300 yuan / ton, and 100-200 yuan per ton.

The main reason is that the downstream orders are slow and the textile mills compete with each other for price reduction.

First, there is fierce competition for similar cotton products in the near future. In order to attract orders, enterprises must not reduce their prices.

Many enterprises feedback, since this year, conventional yarn has been selling smoothly, enterprises start at full load, and product inventory is rising.

Recently, a lot of enterprises need to withdraw funds because of the urgent need to withdraw funds. The circulation of conventional yarn in the market has increased, resulting in intensified competition in the market.

Second, downstream

No marked improvement.

Recently, pure cotton grey cloth is generally stable, with a slight drop in part.

In particular, some specifications of grey fabric inventory pressure increased, forming a demand pressure on the upper reaches of the industrial chain.

Recently, a Hebei enterprise's cotton grey fabric 32S*32S 71*68 50 "price in 5.27 yuan / m, a factory in Shandong a cotton combed grey cloth 40S * 40S 128 * 68 1/1 63" price 6.74 yuan / meter, Shandong enterprise C60*60 90*88 64 "Bali yarn quoted price is 5.3 yuan / meter.

At present, the grey cloth manufacturers usually produce orders, and do not stop production or reduce production. The raw materials are "follow suit with purchase", and there are signs of credit phenomenon, which creates great pressure on the upstream market.

Recent polyester cotton yarn market also weakened, local prices fell slightly.

Recently, the price of polyester cotton yarn 21S 80/20 in Ji Lu area was around 12800 yuan / ton, and the price of 32S 80/20 was 13800 yuan / ton, and the price center dropped 50 yuan / ton compared with the previous week.

There are two reasons for the weakness of polyester cotton yarns: first, the upstream raw materials will fall back.

On the 19 day, the price of 1.4D direct spun polyester staple in Jiangsu and Zhejiang provinces was about 7400 yuan / ton, and the actual trading price was 7300-7400 yuan / ton, compared with the 100 yuan / ton line at the beginning of the month.

The near future,

There is no obvious increase in demand, and the inventory pressure of enterprises is bigger.

Two, poor downstream consumption.

Recently, polyester and cotton fabric market is weak, and local prices have declined slightly.

Recently, the price of T/C80/20 polyester cotton grey cloth 45S * 45S 96 * 7263 in a factory in Shandong was 5.11 yuan / m, down 0.02 yuan / m compared with last week.

In addition,

Obvious overcapacity, large inventory and difficult return of capital.

In addition, the recent pure polyester yarn market steadily fell slightly, the human cotton yarn market stable, 20S and 30S trading volume is larger, since March, viscose staple fiber prices began to frequent decline, although in mid April after the low price sell-off, the market price slightly rebounded, but still difficult to change the industry decline.

Viscose staple fiber fell from the high point in the year to date, the decline was 2600 yuan / ton.

As far as R40S is concerned, the yarn of three processes, ring, Siro and siro spinning, has accumulated 2650 yuan / ton, 2850 yuan / ton and 3500 yuan / ton respectively.

At present, the market price of viscose staple fiber is 15100-15300 yuan / ton.

To sum up, the recent weakness of cotton yarn is due to both the raw materials and the weakness of the downstream fabric market.

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