Textile Enterprises: Yarn Decline Is Expected To Be Low In The Near Future

Recently, domestic textile enterprises continue to reduce the price of yarn by orders. According to some manufacturers, the fundamental reason for the reduction is to increase liquidity and protect the operation of enterprises.

As of April 10th, the price of pure cotton yarn combing 21S and 32S in a factory in Dezhou, Shandong was 18000 yuan / ton, 19000 yuan / ton, compared with the previous week, it dropped by 500 yuan / ton. Some of the premium yarn prices dropped simultaneously. On the 10 day, the price of combing 40S and 60S in a factory in Jiangsu was 22600 yuan / ton, 24200 yuan / ton first line, compared with the previous week, it dropped 400-500 yuan / ton. According to Hebei Gaoyang, Shijiazhuang and other enterprises, low - and low - grade yarn has a big decrease. On the 10 day, the price of air spinning OEC12S in a factory in Shijiazhuang, Hebei was 14800 yuan / ton, compared with 600 yuan / ton in the previous week.

While pure cotton yarn fell, other yarns continued to fall. According to feedback, as of 10 days, the T32S price of pure polyester yarn in Fujian, Guangzhou and other places dropped to below 10000 yuan / ton, and the general quotation was 9700-9900 yuan / ton, compared with the previous week, it dropped 600 yuan / ton. Polyester cotton yarn fell slightly, 10 days, Fujian polyester cotton yarn 32S (TC35/65) price in 14300-14500 yuan / ton line, compared to the previous week fell 400 yuan / ton or more.

According to analysis, there are three reasons for the sharp decline in yarn prices: first, the shortage of orders for foreign trade. Europe, the United States, Japan and South Korea and other economies are facing severe epidemics. The phenomenon of sealing up the country is becoming more and more intense. Orders are canceled. It is common practice for enterprises to cancel orders. Enterprises can not get them or raw materials have just been ordered. They have been canceled. Overseas customers prefer to lose money and make a loss. Two, there has been no marked improvement. By the end of this week, the resumption of production and rehabilitation has been in full swing, but terminal consumption has not yet started. Many enterprises "just returned to work", the situation is very difficult. Three, the decline in raw material prices has been transmitted to the spinning industry. Data show that, since the Spring Festival, affected by the epidemic, domestic cotton prices fell from 13500 yuan / ton line to the current 10500 yuan / ton, a total decline of 3000 yuan / ton. In addition, the price of polyester and short also dropped from 7200 yuan per ton a year ago to the current 5200 yuan / ton, down 2000 yuan / ton. With the resumption of production and production of local enterprises, low cost raw materials have been used, forcing factories to lower prices.

To sum up, the recent decline in yarn prices is expected, and is expected to be stable in the near future. The main reason is that OPEC and other oil producers have reached an agreement on the reduction of production, and the rise in international oil prices has basically stabilized the trend of rapid decline in international commodities and restored market confidence.