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    Textile Raw Materials Shock To The Market Downturn Or Early Dragon Boat Festival Leave

    2020/6/23 12:54:00 0

    Textile Raw Materials

    Near the Dragon Boat Festival, the domestic cotton yarn experienced a wave of recovery in May, and the demand collapsed in June. As of June 18th, the domestic C32S average price was 18682 yuan / ton, down 40 yuan / ton compared with last week.



    Cotton is on the top this week. After a wave of waves, the cotton index dropped by 12011 yuan / ton, down 0.59% yuan, or 72 yuan, or 0.59% yuan. According to the feedback situation of some cotton warehouse in the mainland, inventory is relatively stable at present, and the number of sunrise bank is more obvious than that of futures. When futures prices go down, the number of bills of lading issued will be more, and the futures prices will rise, so the volume of shipments will drop. According to feedback from some textile factories, the epidemic situation has not been fully controlled at home and abroad, and there is no rapid digestion of yarn inventory. If there is bad news in the market, spinning enterprises will surely lower the purchase price. Therefore, many trade enterprises also understand the truth. Generally speaking, when futures prices fall, they will come to the mills to offer spot price resource declarations. Some traders will get a deal in order to get a small profit, part of them or to complete the established sales tasks, and some people or timely return of enterprise funds. Expand the price war. Over time, participants became physically and mentally exhausted, and their operational enthusiasm also declined. Along the way, you may find that as long as the market is not good enough, cotton prices will fall back. It seems to be a hidden rule. On the other hand, the original downstream sales were bleak, coupled with the raw material cotton futures market with large fluctuations, the willingness to replenishment of textile enterprises has dropped to freezing point. But even so, most of the textile companies are reluctant to lower prices, mainly due to the rising price of lint and the rising cost of the lint.



    At present, the cotton yarn market has entered the off-season in June. Meanwhile, overseas epidemic has not been well controlled. Beijing has reproduced local confirmed cases, and the market is worried that the outbreak will erupt again. The above double factors superimpose the original cotton sales market which is not smooth, and the market is even more light. Under the pressure of bottom and pressure, some of the operators think that the market lacks market trend, and that the operation enthusiasm of them is obviously cooled down under the strategy of less action. According to the current cotton spot price, the cost of C32S branch processing is about 18800-19300 yuan / ton, while the domestic spot price is about 18500-19000 yuan / ton, and the spinning enterprise loses 300 yuan / ton.



    On the startup side, under the profound lesson that high storage has brought great harm to textile enterprises, under the epidemic crisis this year, textile enterprises have more strict control over production and marketing, and maintain low start-up and low inventory operation mode. At present, the phenomenon of further reduction and discontinuation of textile enterprises is not yet widespread. However, due to the gradual weakening of shipments, the comprehensive inventory of textile enterprises is still rising slightly. And the downstream textile mill's starting rate is worse. Sub regional perspective, the Shandong Weifang area reduced significantly, the current start-up rate of about 3-5 enterprises. Because of the poor market demand, the weaving factory has long wanted to take a holiday. This time, it is expected that the holiday will last until the end of June and the Dragon Boat Festival is at the end of June. The demand in Jiangsu and Zhejiang is relatively good. Lanxi and Nantong can still run more than 50% of their factories, mainly because the demand for white goods can still be maintained. However, the demand for jeans is very poor in Jiangsu and Zhejiang provinces, and the rate of starting up of cowboys has also been significantly reduced. The opening rate of Guangdong in May has once returned to 4-5, and there has also been a marked decline in June. Overall, in the textile industry off-season, manufacturers began to start holiday arrangements, the Dragon Boat Festival holiday is expected to be more common than in previous years, and the length of the holiday is also appropriate to extend, this week there will be weaving factory began to leave. At the same time, the possibility of resumption of the market is not great.



    Imported yarn prices continued to stabilize this week. As of June 18th, the spot price of FCY Index C32S was 18526 yuan / ton, down 21 yuan / ton compared with the same period, and the price at home and abroad was upside down and maintained at 170 yuan / ton. Although the epidemic situation in Southeast Asia has not been completely controlled, but for the economy, India and Pakistan are also gradually recovering their production capacity. The import of imported yarn is gradually recovering or even increasing, and the price of foreign cotton imports has also risen to varying degrees. But looking back at the lower reaches of the country may have a certain impact on the production and sale of low and medium varieties in China, but how long will it last?


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