Why Cotton Yarn Can Not Go Up With Cotton Simultaneously

In recent years, domestic cotton prices can be described as sesame flowering high.

A textile manufacturer in Shandong said that in the past week, the price of cotton purchasing in the market was between 14600-16000 yuan / ton, and the turnover rate of national cotton storage is close to 100%, and cotton prices will continue to rise.

There are many enterprises that are worried about the rapid increase in cotton prices.

A small textile manufacturer in Gaoyang, Hebei, said the factory has stopped production.

The reasons are as follows: first, cotton prices continue to rise and spinning costs increase rapidly.

Take the combed 32S produced by their factory as an example, the cost has reached 19900-20000 yuan / ton now, and the selling price is still hovering at 19600-19900 yuan / ton, and the cost has been "upside down".

Second, the rise of cotton yarn is extremely difficult.

Compared with cotton, cotton prices rose 1200-1300 yuan per ton since July, while cotton yarn only increased by 300-400 yuan / ton, making it difficult for textile enterprises to survive.

Why can cotton yarns not synchronize with cotton?

1.

The problem has not been effectively solved.

Since 2016, many small and medium-sized textile enterprises have been closed down, but the problem of excess capacity is still prominent.

Zhao manager of a textile enterprise in Shandong said two situations: first, since the beginning of this year, Xinjiang cotton textile has sprung up, but the yarn is competing for the market share with the mainland market; two, the domestic and overseas manufacturers have already formed a larger scale, and the yarn produced is mostly sold to the domestic market, which will impact the domestic market and cause the mainland's yarn supply to be loose.

2, the impact of external yarn is becoming more and more intense.

According to traders' feedback, 6-7 months, the volume and price of port yarn increased, especially India yarn, Indonesian yarn and so on.

Yarns, not only prices continue to rise, sales progress is also faster.

On the 27 day, a trader in Qingdao port responded that at present, the yarn inventory of the port free trade zone is more than 15 thousand tons. The yarn is mainly produced in India, Indonesia, Vietnam and the United States. Because of better sales, traders are actively shipping and have a greater impact on domestic yarn.

3, cotton yarn's off-season characteristics are obvious.

Generally speaking, it is 6-9 months per year.

The traditional off-season, especially this year's off-season, is more obvious.

Market analysis suggests that the reasons for the slight sales this year are manifold. One of the main reasons is that the downstream consumption has not improved significantly, especially the export situation of cotton yarn is not optimistic, and the problem of triangle debts in the industry is very prominent.

In the process of communication with enterprises, we found that the reasons for the enterprise's inner tension are: the prices of upstream raw materials are rising continuously, the two is the downturn of downstream consumption and the sluggish sales of yarn.

Moreover, as far as the current situation is concerned, most enterprises believe that the domestic cotton prices will increase in the coming year and next year.