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    Global Textile Enterprises Are Roasted By "High Temperature Cotton"

    2016/7/14 18:42:00 23

    Cotton YarnTradeWeaving Factory

    More recently Cotton yarn Trade Business reflects Shandong, Hebei, Henan and other places textile mill Compared with 5 and June, traders made a lot of inquiries and orders for Vietnam, India, Pakistan and Indonesia compared with that in June, especially Vietnam's big factories, brand C20S-C32SA and A+ yarn shipments accelerated. In July, 9 and 10 days, the Vietnamese Vietnamese C32SA+ yarn quoted price was 2.65-2.66 US dollars / kg, higher than that of the same number of India cotton yarn 0.01-0.02 US dollars / kg, also slightly higher than Uzbekistan C32S yarn.

    It is understood that since June, the proportion of cotton, yarn, cotton, West African cotton, American cotton and Australian cotton in Vietnam's cotton mill has been increasing. The use of medium and low grade cotton in India cotton and Central Asia cotton has decreased, cotton yarn strength, CV value and hairiness have increased, cotton yarn competitiveness has been continuously improved, and cotton yarn quality has been gradually recognized by domestic factories and traders. In addition to several large factories in Vietnam, the scale of other cotton mills is mainly concentrated in 2000-20000 spindles, plus cotton resources mainly rely on imports, supply capability and performance capability are not strong. Therefore, the demand for large ships in the far month period is relatively high (generally 45 days to 60 days ahead). Moreover, with the sharp increase in the quotations of cotton and yarn FOB, CNF and CIF in India and Pakistan in June, the willingness of Vietnam's cotton mill to rise is also rising. In order to reduce risks, the cotton mill does not actively take orders for 7 and August.

    According to the survey, the violent rise in cotton prices has not only caused the problem of "intestinal obstruction" in Chinese textile enterprises, but also in India, Pakistan and Vietnam. On 8-10 July, the pickup price of S-6 and J34 in India has risen to 85.60 yuan / pound, 84.70 cents / pound, compared with 68.40 cents / pound, 69.10 cents / pound in May 1st, respectively, 17.20 cents / pound, 15.60 cents / pound, 25.15% or 22.58%, and the increase of S-6 and J34 in India has exceeded 40% since early March. However, the FOB and CNF quotations of C21S, C32 and OE yarn in India and Pakistan have increased by only 7%-9%, and the large factories and brand A+ yarns have increased by about 25.15%. The adjustment range of cotton yarn is far behind that of cotton, which has seriously delayed the cost transfer of cotton industry chain. Such a high cotton price makes India, Pakistan and other domestic cotton mills prohibitive, and cotton purchases have declined considerably. Textile enterprises in Gujarat and Lahore have said that since late June almost no longer have been ordered. After the completion of the previous contract, they plan to cut down production or stop production. Cotton prices are too high, resulting in the loss of more production, the loss of more products, and the loss of more stockpiles.

    Some international cotton traders reflect that the domestic textile mills have made an inquiry on the low grade cotton in 2016/17 in 1-3 (M, SLM, mainly spun OE10S-OE21S yarn), but the excessive cotton price has seriously restricted the demand of textile enterprises. The cotton mill has a large stock of gauze in the near future, and the sales of downstream enterprises have not improved. The "tipping point" is as follows: first, the United Kingdom took off from the European market, and the dollar index fell, triggering a strong rebound in bulk products (especially agricultural products); two, China and India became the "engines" of rising international cotton prices. The main reason is that domestic cotton supply is insufficient and capital flight is crazy. The difference is that China is benefiting from traders, while India is a cotton ginning plant. Three, capital needed to withdraw from the property market and stock market needs a reasonable release space. The main reason why speculative capital enters the market is the small size, large impact and easy choice of speculation. Four, the global demand for low C32S sales has been enlarged for a long time and the weather of the main cotton producing areas has been damaged by speculation. The rise of global cotton prices has caused a fatal blow to the whole cotton and cotton spinning industry.

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