Bad Factors Ferment Weak Price In Weak Season

In late July, cotton futures and ICE futures all rose sharply. Some cotton traders slightly raised the spot price quotations of Xinjiang cotton, but the cotton textile market was still deserted. Through contact with textile enterprises in Shandong, Henan and Hebei, it is known that cotton yarn is difficult to raise and the pressure of orders is still large.

In recent years, the sound of real economy has been fermented every once in a while, and this year is more intense. According to a US data, as of July, 7062 retail outlets in the United States were closed this year, and the number of stores closed for the whole year is expected to reach a record 1.2.

People in charge of clothing enterprises in Zhengzhou, Hebei and Shijiazhuang, Henan, said that due to the serious homogenization of commodities, the life expectancy of clothing products is becoming more and more short under the prevailing competitive environment of imitation. In July of this year, large wholesalers, garment factories and shops were closing down.

According to port traders, the impact of external yarn is also growing. Since June of this year, China's main port logistics area and bonded area are full of yarn, and stocks are mostly over 100 thousand tons. By the end of July, it had reached a historical high of 120 thousand tons. In addition, the price difference between imported yarn and domestic yarn has narrowed down gradually. At present, the price of yarn in C32S of China's medium-sized textile enterprises is 21700-21900 yuan / ton (more than 50% of national cotton and cotton assorting), while the price of India C32, Vietnam and Pakistan yarn is more than 21800-22000 yuan / ton. In contrast, imported yarn has good quality index and high consistency of dyeing. Imported fabrics are preferred for grey fabric and fabric enterprises.

Under the heavy pressure of imported yarn impact and clothing shop closing, the situation of textile enterprises with fewer orders and high inventory is clouded. On the 24 day, the head of a textile factory in Shandong said that the spinning capacity of the factory exceeded 170 thousand spindles, but the order was not enough to produce half of the capacity. While the Company Limited production, it was looking for orders, but its inventory was still rising. It is understood that, in the general year, textile enterprises do not stock more than 15 days, this year inventory of more than 30 days of enterprises everywhere. Under high inventory, the capital flow of enterprises is not good enough, and raw materials are more laborious. Doing everything possible to inventory has become the main target of textile enterprises in the near future.

In the face of a weak market environment, the contradiction between supply and demand is prominent, and cost side support is weak. Textile enterprises mainly focus on the implementation of pre orders, but the price is difficult to raise and the price of medium and low yarn is not guaranteed. Although the recent Sino US trade talks have released good news, they have limited impact on the textile market. For the yarn products in the off-season, the negative factors dominate, and the market is very clear that the prospects for its negotiation remain quite variable, and the price of yarn will remain weak in the short term.