Yarn Faces Two Pressures In The Near Future, Easy To Fall But Difficult To Rise

Recently, the author knows some textile enterprises. Most of them say that the yarn market continues to weaken in the near future, and the possibility of price decline is greater, which mainly faces two aspects of pressure.

First, orders continue to shrink. It is the middle of July, which is also the traditional off-season of textiles and clothing, and the market demand continues to weaken. Recently, many enterprises have reported a significant reduction in orders. In addition, the production of overseas enterprises is also affected by the epidemic situation. Although some large factories can get orders, the price of the orders has obviously shrunk, and enterprises also have to bear the pressure of thin profits or losses.

On the 20th, a factory in Dezhou, Shandong Province, said that they mainly produced low count and low yarn, and had not received an order for more than half a month. Inventory of finished products has increased to 27 days, there is no capital turnover, and the wages of workers are also in arrears. It is planned to have a one month holiday at the end of July.

The second raw material market continued to fall. Last week, Zheng cotton futures run low, taking September contract as an example,. As of July 17, zhengmian's September contract closed at 11945 yuan / ton, down 110 yuan / ton from the closing price of 12055 yuan / ton on Friday (10th). Recently, cotton spot trading is very cold, point price transactions than the previous week significantly weakened, buy it now transactions stable. On the 19th, some large-scale cotton merchants reduced the base difference of some early-stage warehouse transfer resources by 150 yuan / ton (considering the freight), while some cotton merchants sold Nanjiang hand picked cotton "double 28" transaction basis at cf09 + 780 yuan / ton (self raised by inland warehouses).

Recently, polyester staple fiber market is weak. As of July 20, the mainstream price of 1.4d * 38mm direct spun polyester staple fiber in Jiangsu and Zhejiang was 5250-5350 yuan / ton, with a general transaction; on July 20, the price of middle end viscose staple fiber in Hebei Shandong region was 8500-8600 yuan / ton, slightly lower than that of the previous week.

To sum up, the yarn may maintain a weak adjustment pattern in the near future. Due to the influence of off-season in July and August, it is unlikely that the price will rise.