"Stumbling" Cotton Yarn &Nbsp; "Nirvana" In The Hope Of Rebirth.

This year's whole cotton Spin The industrial chain is covered by a shadow. Compared with last year, cotton prices fell a lot, but cotton yarn Price The fall is even more severe, falling far more than cotton, almost falling to the cost line, and the limited production of each cotton mill. Stop production The phenomenon also occurs frequently, and the entire market has already entered the winter ahead of schedule.

Cotton yarn price "stumbling"

Yarn prices continue to fall as export orders decrease and downstream consumption slump. Shengze market 32S full cotton yarn is currently quoted at 26600 yuan / ton, down 8300 yuan compared with the beginning of the year, or 23.8%. 40s full cotton yarn sells for 48000 yuan / ton, only 28000 yuan / ton now. In addition, sales of cotton yarn also dropped sharply compared with the beginning of the year.

According to the Japanese Spinning Association report, in September this year, the import of pure cotton yarn dropped by 18.4% to 17622 bales. This is the first time since July 2010 that imports have been below 20000 bales. Japan's decline in the import of cotton yarn also reflects the weakness of the current sales of cotton yarn Market from one aspect.

In short, the overall demand for yarn market is shrinking, some capital chains are tight, textile production and marketing are showing signs of downturn, sales of yarn and cloth are weak, stock of finished products is picking up, production of enterprises has stopped production and production restriction has increased, yarn market has been exhausted, and overall volume and price have plummeted.

"Sudden change in wind and cloud" in the cotton market

Since January this year, the domestic cotton price has been inverted "V". China's cotton price index rose from 27516 yuan / ton in January 4th to 31241 yuan / ton in March 8th. Since then, "the wind and cloud have changed", cotton prices have plunged to a minimum of 19000 yuan / ton.

On the basic side, because of the decrease in export orders and the downturn in downstream consumption, the price of yarn continues to fall. The cost of domestic low-grade and imported cotton is around 18000 yuan / ton. Spinning still has huge profits, which will lead to the continued sale of cotton mills in the future. Under such circumstances, the selling pressure of spot and cotton yarns will make domestic cotton prices remain weak. Under this drag, cotton is expected to be in a slight downward trend.

Garment enterprises enter the transition period

The continued downturn in European and American economies has also made changes in demand for foreign clothing. Many garment enterprises say that the new requirements put forward by customers are actually forcing enterprises to increase R & D investment and innovative design of clothing. What needs to be seen is that, in the long run, the development of new products is actually enhancing the R & D and innovation capability of enterprises, and the battle for transformation and upgrading of enterprises has quietly started.

With the economic downturn in Europe and the United States and other countries, the reduction of orders and the price reduction of domestic enterprises have become a common phenomenon. At the same time, foreign demand for export clothing is also quietly changing.

Summary and Outlook

In the face of various unfavorable conditions such as the economic downturn in the US and Europe, the increase of raw material prices, the rise in labor costs, the appreciation of the renminbi and the tightening of domestic monetary policies, the strategy for the textile industry is to transfer the industrial chain to the areas with lower production costs in the inland areas, and to strengthen technological research and development and increase the added value of products. This is the consensus reached by the entire textile industry.

For the cotton market ahead of the winter, whether or not we can survive the cold winter in the late stage, "Nirvana rebirth" has successfully welcomed the spring.