Ji Lu Yu: Pre Season Stocking Scene Is Not Yet Difficult To Spin Off Enterprises

This week (2019.1.7-11) the overall textile market performance in Hebei, Shandong and Henan provinces is becoming more and more low, and sales volume from raw materials to grey fabrics has declined as a whole.

Raw materials: according to the feedback information from the cotton market, at present, new warehouses in the mainland are abundant and the prices are stable in the short term. The double 29 hand picking cotton is basically up to 16000 yuan / ton; however, with the approaching of the Spring Festival, the atmosphere of the annual flavor is getting stronger and stronger. The downstream market of the textile industry is depressed, making the textile enterprises limited production or early leave. Cotton mills and operators are not willing to buy goods and stockpiling goods. With the purchase, raw materials are extremely cautious, and the psychology of watching is aggravated. Therefore, the current cotton market has gradually entered a state of no market price, and some of the cotton ginning enterprises have begun to enter the holiday stage.

Yarn: according to the Spring Festival nearly a month, the yarn market has become more and more deserted, the market orders are gradually decreasing, only the individual printing and dyeing factories, garment factories in order to rush ahead of the Spring Festival delivery order.

Although a large number of low-priced yarns are flooded with the market, turnover is continuing to decline. The high inventory and low opening state of downstream enterprises can no longer serve as support for spinning enterprises, leading to the most difficult operation of most textile enterprises at present.

Therefore, many enterprises already have the intention of early holidays or extended holidays, especially some of the middle traders even went out of business earlier.

The funds of some enterprises are quite difficult, and the wages of workers who are in arrears before the Spring Festival holiday are bound to be issued. Therefore, some difficult spinning enterprises want to go all ways to cash in, the looms factory concentrates on grading products, the spinning mills deal with the odd number of yarn, and so on, and seize all the opportunity to return money.

Before the lower season, the stock market is not yet available. It is expected that the textile industry will become even more difficult after the holidays.