Henan: Textile Enterprises To Resume Normal Cotton Prices Rise Pressure

In June 8th, China's cotton net reporter came to Henan to conduct research on cotton textile raw material procurement, order sales, inventory and so on.

According to the introduction of the Henan Textile Association, Henan's cotton textile industry has a large scale of spinning and a small garment scale. The textile industry accounts for 65%, clothing accounts for 20%, and textile machinery and chemical fiber account for 5%. After the Spring Festival, the cotton textile enterprises in Henan province resumed their work mainly in three stages. In the early days of reemployment, the demand for cotton yarn in Fujian, Jiangsu and Zhejiang was larger, and the number of enterprises increased. In the second stage, with the outbreak of foreign epidemic situation, foreign trade orders were abolished, and sales of textile enterprises were sold from domestic exports to domestic sales, resulting in pressure on domestic yarn production, and some enterprises stopped production. Due to the main export yarn and lagging time, the cancellation of foreign garment orders has little effect on yarn sales. Up to now, Henan textile enterprises have gradually returned to normal. In the future, we need to expand domestic sales to ensure the normal operation of yarn production.

In view of the current low cotton prices and the cautious purchase of raw materials for textile enterprises, cotton related people believe that the increase in cotton prices is mainly due to their low absolute price and the price fixing. However, restricted by downstream consumption, cotton prices do not continue to rise substantially.