Cotton Prices Remain Weak

It is understood that the recent demand for pure cotton yarn is fading again. Although the early low cotton yarn performance is acceptable, especially C21S, 26S and so on, the demand in the near future is slightly weakened. According to Shandong, on the one hand, the order is reduced due to the arrival of the demand off-season; on the other hand, the upstream cotton and the expected market are empty, so the manufacturers are more cautious in purchasing. Under the overall bias, the performance of medium and high count cotton yarn is much lower than that of low branches, and the spread of price increases further. Some big factories have dropped more than 2000 yuan / ton of cotton yarn from April to now, and some have even reached 3000 yuan / ton, while the price of low count cotton yarn is relatively small, which is maintained at 1000 yuan / ton.

The mainstream prices of pure cotton yarn decreased in varying degrees compared with the beginning of April, especially in C60S and 80S. The decline of OEC10S, C32S and JC40S was relatively small, and remained at 1000 yuan / ton. OEC10S, C32S and JC40S declined less than 60 or more products.

　　 Low count cotton yarn The reason for the smaller decrease is mainly due to the following points: first, the following products are C32S: the price difference between domestic cotton yarn and imported cotton yarn has been narrowed gradually, especially the price difference of air spinning is not large, so that some orders are returned to the domestic market, and orders return to a certain extent. The two reason is that the imported cotton yarn has a greater impact on domestic C32S products in 2012 and 2013. Some manufacturers reduce the output of these products and turn them into chemical fibers, blended or medium and high cost products, thus reducing production and supply. Three, because the prices of domestic products below C32S are close to the cost line, the depth of decline is limited.

The main reasons for the decline in the prices of products over 60S are the following: first, the increase of high count cotton yarn manufacturers in domestic production and fierce competition. Downstream demand There is no synchronous follow up, so manufacturers cut profits and reduce shipments continuously. Two, the downstream demand has shrunk compared with last year, especially the domestic yarn dyed fabric is poor, which restricts cotton yarn demand; three, cotton prices are falling, and the middle and high count cotton yarns are falling along with cotton prices.

However, Environmental Science More complex, the decline of cotton yarn prices is not just a few reasons mentioned above, there are many other aspects, but the overall economic environment is not good enough, making the lack of confidence, the fact that the textile enterprises are tight funds.

It is understood that cotton accounts for more than 70% of the total cost of cotton yarn, so cotton prices directly affect the price trend of cotton yarn. From the present point of view, cotton in July has a larger probability of maintaining a weak and declining state, and it is difficult to improve. Cotton yarn is the main task in controlling the cash flow at the time of downstream demand in the off-season. Therefore, the price of cotton yarn in the later stage is still weak, and the phenomenon of low-priced selling is constantly increasing.