Better Sino US Relations, Cotton Yarn Will Soon Enter "Holiday Market"

In December 13th, China and the United States reached the first stage agreement, but it was good enough to land. Zheng cotton's performance was unusually calm, and futures returned to stock market fundamentals. At present, the cotton and cotton textile industry chain is facing the problem of insufficient demand after the road, that is, the terminal demand is low, the market volume can not be enough, the inventory of finished products is high, the profit of the whole industrial chain is compressed, and with the foreign Christmas and the spring Festival approaching, the market demand is dropping rapidly. Some cotton spinning enterprises have begun to prepare for the holiday.

It is about to enter the "holiday market". Cotton spinning enterprises adhere to the principle of "better empties and not be locked in". Cotton inventory control is less than 1 months. Cotton stocks in medium-sized cotton spinning enterprises in Shandong are about 28 days old. Some cotton spinning enterprises plan a small amount of replenishment after the new year's day, and cotton prices are low, attracting low order orders to return. After entering December, 32 or 40 or 60 branches of high count yarns can be sold along with production, and the storehouse speed is slowing down. Some enterprises will sell stocks in advance, and sell back stocks to purchase high-quality raw materials to ensure the quality of cotton yarn. In terms of finished products, according to Zhuo Chuang statistics, at present, the cotton yarn inventory of medium-sized cotton spinning enterprises in Shandong is about 36 days. In order to speed up the sale of cotton yarn, the enterprises with low inventories are speeding up production to make inventory for users to replenishment; the high inventory enterprises should make profits to speed up inventory clearing, and some enterprises plan to start holidays after the new year, and later start their work according to the inventory clearing schedule after the Spring Festival.

In the short term, as the Spring Festival draws near, there will be a demand for high warehouse cotton textile enterprises to withdraw funds from the Treasury. Before the Spring Festival, the price of cotton yarn will continue to decline, and the transaction will follow suit. In the long run, although Sino US trade relations have been improving for a short time, there are still large variables in the latter stage. Cotton spinning enterprises have prepared for a protracted war. It is expected that foreign trade orders will continue to turn around next year, and the market competition will be more intense in the future.