Cotton Price Shocks To Explore Cotton Yarn Grey Cloth And Fall

Cotton price

The sharp rise and fall on the one hand made the cotton hoarding enterprises suffer huge losses. On the other hand, it also brought a great impact to the downstream textile enterprises. The high price raw materials made the textile look forward but instead, the sharp fluctuation of prices further attacked the enthusiasm of purchasing.

Since entering the two quarter, at home and abroad

Continue the weak pattern, prices all the way down and down, affected by this, cotton yarn, grey cloth market prices are also down all the way, cotton yarn prices fell by nearly 20%.

In addition, due to the combined influence of labor costs and credit crunch, the demand for domestic textile industry is weak, which can not effectively support the market.

The sharp rise and fall on the one hand made the cotton hoarding enterprises suffer huge losses. On the other hand, it also brought a great impact to the downstream textile enterprises. The high price raw materials made the textile look forward but instead, the sharp fluctuation of prices further attacked the enthusiasm of purchasing.

With the deepening of the decline in cotton prices, textile enterprises are mainly consuming inventory, especially in the off-season of textile industry in July and August, and the demand for cotton is limited.

The fatigue of the cotton market is affected by the psychological anticipation of "buying up or not buying down", and the price of cotton yarn presents a downward trend in volume and price. However, the market turnover is bleak, which is mainly reflected in the high number of yarn stocks in spinning enterprises. According to the cotton information network, the yarn inventory has not been reduced to 35.02 days, which is far higher than the 10.33 days of the same period of last year, according to the survey of cotton spinning enterprises with a total volume of 12 million 300 thousand spindles.

Stimulated by high cotton prices in the second half of last year, cotton planting area in the new year has generally increased over the previous year.

Although the market has been hyping the weather factors, according to the latest US Department of agriculture report, the cotton inventory consumption ratio will increase to 43.68% next year, or the situation that cotton supply will be tight will be eased.

At present, there is still time for new cotton to go on sale. Enterprises continue to consume inventories and the market is in the stage of being out of green. From the above stock chart, though the cotton stocks are not high this year, the main reason for the sluggish market is the shrinking of consumption. 7, 8 and September are the off-season for textile industry, and the improvement of market demand is expected to be limited.

On the whole, under the environment of increasing uncertainties in the international economy and the continuation of the domestic regulatory policies, the cotton market is expected to continue to shake down in the short term under the anticipation of increasing supply and weak demand.

At present, we can pay attention to the consumption of cotton yarn and the trend of cotton yarn prices. The price of cotton yarn has stabilized and the drop in inventory may have boosted the cotton market, but there is no sign of recovery.