Raw Material Prices Drop, Yarn Profits Decrease

At present, the resumption of production rate of downstream textile enterprises has gradually increased, but the WeChat circle has been affected by the continuous spread of foreign epidemics, and the order of enterprises has been reduced. Even in April, it faced with no single predicament. What is the truth?

It is understood that at present, textile enterprises have long-term and stable orders, sales remain normal, enterprises are not worried about the order problem, mainly after the holiday cotton prices continue to fall, the product profit is too low. Although the domestic epidemic has stabilized, the foreign epidemic is aggravated, which worries the enterprises. After all, a considerable proportion of the products are exported.

A textile enterprise in Henan said that the price of cotton before the festival was 14200 yuan / ton, and cotton price dropped after the holiday. Now the best cotton price is 13200 yuan / ton, and the difference is 1000 yuan / ton before and after, which increases the cost of textile, although the downstream orders are continuous, every month, but the price is low, and it is not easy to take orders. This does not include small orders. The amount of purchase before the festival is large, so the high value cotton is still used. At present, the market price of yarn has gone up slightly, and some weaving enterprises do not accept it, so the two sides can only stand on stalemate.

In view of future industry quotes, the company believes that if the world's epidemic situation improves, China's epidemic situation will be over, possibly in the 5-6 months. If the epidemic is not controlled, it may be a low season all year round, especially with the impact of the epidemic and crude oil. There may be a shutting down of a number of textile enterprises in China.