Yarn Dyed Fabric Market: The Atmosphere Of Off-Season Is Getting Stronger And The Pressure Of Enterprises Is Increasing Gradually

In the past month, the domestic and foreign cotton futures and spot prices have been surging up; the yarn market as a whole is weakening, the price is stable and weak, and the delivery of high count pure cotton yarn is slow; the demand for yarn dyed yarn terminal is weak, the follow-up orders are weak, the capacity utilization rate has decreased, and the price is weak and stable.

1. Raw material Market

Since mid June 2020, affected by local rebound of epidemic situation at home and abroad, rotation of reserved cotton, and fluctuation of financial market, cotton futures and spot prices at home and abroad have been surging up. On July 16, the average spot price of 3128b cotton in China was 12350 yuan / ton, up 115 yuan / ton compared with the same period last month. Since the central reserve cotton was put out on July 1, textile enterprises have focused on the purchase of reserved cotton. The transaction of reserved cotton continues to be hot, and the spot market of cotton is still cold. The survey shows that textile enterprises mainly purchase on demand, and the inventory of raw materials has decreased compared with last month. The overall price of cotton is difficult to follow. The market demand of combed pure cotton yarn is not good, and the delivery of high count pure cotton yarn continues to be slow. In order to relieve the inventory pressure, the yarn prices can be negotiated, and some of them are sold at low prices.

2. Yarn dyed fabric Market

Since the middle of June, affected by the epidemic situation, some countries have suspended the pace of economic recovery or re "closed the city", combined with the traditional off-season atmosphere and other factors, the export market recovered slowly, the domestic demand power was insufficient, the terminal demand was weak, the yarn dyed fabric market was generally weak, the product price continued to be weak, and the profit was poor. Most of the surveyed enterprises' foreign trade orders decreased by about 50% year-on-year, with the opening rate of about 60%, and the capacity utilization rate decreased compared with the previous month. At the end of June, some yarn dyed weaving enterprises changed their orders from suspension to restart. The inventory of products was slightly relieved and some funds were recovered.

It is understood that large-scale yarn dyed enterprises have relatively small pressure on capital chain due to their perfect industrial chain and other advantages. In addition, some enterprises originally accounted for a small proportion of the domestic market, and it was very difficult to transfer to domestic sales. However, through the efforts to maintain domestic old customers and develop new customers, the sales volume in recent years has increased compared with the same period in previous years. However, due to the continuous lack of follow-up orders and increasing pressure on enterprises, it is expected that the opening rate and working hours of employees will be adjusted at any time in August according to the order situation.

On July 15, 2020 Dawan District International Textile and clothing Expo opened grandly. Some yarn dyed weaving enterprises actively participated in the linkage of upstream and downstream industrial chains, pushed forward new technologies and new products developed by enterprises, vigorously expanded the market, and strengthened communication and exchange with the demand side.

3. Future prospects

On July 13, Li Kepan, the premier, presided over the Symposium on opening up and stabilizing the economic situation, held an expert forum on stabilizing the economic situation and strengthening the opening-up policy. In addition, the ongoing Dawan District Expo also brings more expectations for enterprises. In view of the future market, the survey enterprises said that it is expected that the comprehensive recovery of the foreign market still needs to wait for a long time. With the deepening of the traditional off-season, the market will continue to decline, but still look forward to the "golden nine silver ten".

The above data are for reference only