Where Will The Yarn Market Go From Now On?

Recently, the yarn market has become more and more deserted, and orders are less than in March. In the Foshan market, according to an enterprise, the 26 yarns and 40 yarns that had better shipped in February and March are now gradually becoming dull. In the Shengze market, the demand of C32S and JC40S for jet cotton series is relatively acceptable. Other varieties are light, pure cotton yarn market continues to be weak, downstream purchases are low, and combing is inferior to other varieties.

Because foreign trade orders are basically cancelled, many foreign trade enterprises are turning to domestic sales, and domestic orders appear to be in hot demand. In a random survey of some enterprises, some enterprises said that textile enterprises had to substantially reduce prices in order to rush orders, and most manufacturers cut their prices by 1000-2000 yuan. Even so, most spinning enterprises say it is difficult to get orders, raw materials purchase is also sold with orders, and do not dare to hoard goods. Some enterprises with large stocks of raw materials say that the losses are serious. The cotton mills and downstream businesses are mainly clearing inventory and selling goods. The shipping mentality is strong, and there are no new orders in the downstream. The enterprises are eager to ship back the funds and sell again and again. The price war in the market is becoming more and more intense, resulting in a vicious circle in the market. Some textile mills simply reduce production, shift or vacation.

Although the market is not satisfactory, but with the improvement of the epidemic situation, the economy is slowly recovering. Most enterprises still choose to persist in their efforts and unwilling to give up easily.