Textile Market Is Precarious: Yarn Down, Cotton Prices Down, Kucun

Recently, the textile market has continued to ferment, and the Sino US trade frictions have escalated further. The HUAWEI incident has triggered trade frictions to technical frictions, and the market tension has spread. Cotton prices continue to be explored, yarn price shocks decline, and stocks rise faster.

The market is precarious. It is a few joys and worries.

First, cotton spot will continue to explore.

As of May 28th, the three level price of real estate cotton in Cangzhou area was 14200 yuan / ton (gross weight and delivery), four level 13700 yuan / ton, compared with May 24th, it dropped 200 yuan / ton; as of May 29th, the three grade real estate cotton price in Hebei Xingtai was 14500 yuan / ton (gross weight, including tax), four level 14100 yuan / ton, compared with the middle of this month, the price dropped by 800 yuan / ton. According to the analysis, there is still room for reduction in real estate cotton spot in the near future. The reasons are as follows:

1, reserve cotton production base price continued to decline

This week, the reserve price was 13747 yuan / ton (standard class price), down 146 yuan / ton compared with the previous week.

The market expects that the average price of cotton reserves will be reduced by 3128 to 14000-14500 yuan per ton this week.

2, the price of real estate cotton and Xinjiang cotton is flat or even upside down.

Because of the further drop in railway freight rates, Xinjiang cotton has sold to the mainland for sale. The pick up price of the "double 28" machine picking up cotton Cangzhou bank is about 14300 yuan / ton, basically flat with the real estate cotton.

Cangzhou real estate cotton has neither the quality superiority nor the price advantage, and the price continues to be explored almost unavoidable.

Two, the yarn market is still in the off-season.

Yarn has always been "golden, three silver, four red May" argument, but in May it will be over. The off-season has arrived ahead of schedule.

The overall performance of the yarn market is declining, and the market quotation is chaotic.

1, yarn prices plummeted

As of May 28th, the price of all cotton yarn for 21S high ring spinning knitted fabric in a factory in Weifang, Shandong was 22800 yuan / ton, and the price of 32S high ring spinning knitted full cotton yarn was 23800 yuan / ton, which was 200 yuan / ton lower than that of 27 days.

On the 28 day, the factory quoted price of 21S high quality knitted ring spinning pure cotton yarn at a factory in Zhengzhou, Henan was 23400 yuan / ton, and the price of 32S high knitting ring spinning pure cotton yarn was 24200 yuan / ton, the price remained stable, and the actual paction could be discussed.

It is reported that the pressure of the yarn market is very low, but because of the high cost of raw materials in the early stage of the enterprise, the willingness to remain firm is still very strong, resulting in the confusion of quotations from enterprises.

2, yarn stock increase

At present, it is in a state of decreasing orders and increasing conventional yarn production.

In the short term, even if the factory with sufficient funds can increase the production of conventional yarns, the factories will also be able to bear it. If the factories with higher capital pressure increase the production of regular yarns, it will probably lead to difficulties in operation due to the increase in inventory, and then fall into the downtime or the embarrassment of closing factories.

According to the head of a factory in Shandong, since May, fewer orders and more and more stocks have been placed.

Take the local enterprises as an example, most enterprises' stock has risen to more than 30 days, and the individual has reached 36 days, which is 10-15 days higher than the same period last year, increasing by 20% over the end of April.

Some manufacturers have stopped production and stockpiles.

3, suspend procurement of raw materials

As the downstream market is deserted, orders for enterprises are reduced, inventory pressure is reduced, and purchases are decreasing. Most factories no longer buy raw materials.

4, the main way is credit sales.

Recently, the credit sale in textile market is more serious.

The head of a textile factory in Hebei said that when the market was the most popular, the cotton yarn sales of enterprises mostly used "cash in cash" or even the way of prepayment.

Now that market demand is weakening, cotton yarn sales are starting to sell again.

Because of the prevailing credit sale mode in the market, many enterprises with poor strength and insufficient revolving funds can not produce normally, or even have no funds to purchase raw materials and pay wages to workers.

5, business holidays reduce productivity

In previous years, enterprises only had a holiday in the 7-8 months when the temperature was particularly high.

This year, the vacation time was a month ahead of schedule.

Some enterprises no longer work overtime, but to reduce the start-up rate, some of the inefficient yarn machine directly shut down.

In summary,

Cotton market is changing, the yarn price is falling as a whole, and the company is losing money.

In addition, the reduction of orders, enterprises return money difficult, multiple pressures make enterprises breathless.

And many industries are worried that China's textile market will be even more depressed by the deterioration of Sino US trade relations.

Where is the latest direction of spinning enterprises?

1. Intelligent development of technology input

At present, the overall industry downturn, textile enterprises should enhance their technological inputs, improve product quality and brand competitiveness, through intelligent pformation, at the same time optimize the level of technological management, enhance the enterprise's ability to withstand pressure, adapt to the continuous upgrading of products.

2, improve the perspective perspective.

Yarn enterprises should enhance the product perspective, develop new fields of yarn utilization, improve the functionality and adaptability of products, step into the demand side of the market, excavate the trend of users, and be good at finding new trends in the industry with a forward-looking view.

3, build platform resource sharing

When risk comes, unity is strength, spinning enterprises should be good at using Internet + mode, build information sharing platform, realize resource sharing, save limited resources, and achieve maximum benefits.