Import Of Yarn Increased By 50% In June

It has been said last week that the cotton yarn market is in the off-season at present. Many textile enterprise owners said that they saw that August was coming, but they saw that many factories around them collapsed. I can't hold on to it. As of July 30, cy c32s pure cotton yarn reported 18535 yuan / ton, down 20 yuan / ton compared with last week.

Recently, the domestic cotton raw material supply is very sufficient, and the price is low, however, few textile enterprises prepare a large number of goods. As of July 30, the cc3128b cotton index closed at 12253 yuan / ton, down 68 yuan / ton from last week. At present, there are three main sources for textile enterprises: first, reserve cotton, with an average price of less than 12000 yuan / ton; second, Xinjiang cotton in the hands of traders; third, warehouse receipts and foreign cotton. According to port traders, recently, there is a great pressure on cotton outside the port to expand the warehouse, and traders have a strong psychology to go to inventory.

With the strengthening of cotton prices, cotton yarn prices continue to be weak, and the profits of yarn mills are poor. Based on 20 days of cotton inventory, textile enterprises have been in deep losses, with a loss range of 500-700 yuan / ton. Textile enterprises cotton yarn inventory also continued to rise, sales pressure is increasing. At present, many state-owned enterprises have more than 30 days' inventory of combed yarn in domestic enterprises. From June to July, China's cotton mills were in a passive state of increasing inventory. According to the person in charge of a 100000 spindle rotor spinning cotton mill, because the sales of low count yarn are better than that of high count yarn, they have already adjusted the product structure of cotton yarn production, instead of producing more than 40 high count yarn (including 40), but producing less than 32 low count yarn. But after entering July, the low count yarn also appears before the high count yarn, the sale becomes more and more difficult. Textile enterprises are more and more uncertain about the direction of the future market, so they can only buy as you like, when the monk rings the bell one day.

The downstream grey fabric market also has high inventory. According to the feedback of some grey fabric enterprises in Jiangsu and Zhejiang regions, due to the lack of orders, the enterprise's product inventory has increased to more than 33 days. In order to remove inventory, enterprises prefer to receive orders at lower cost price, and some enterprises sell their stocks in large quantities. Even the one-time "sale" of one million meter grey cloth is not fresh. Specifically, since June to July in Weifang and Gaoyang markets in the northern region, the opening rate of cloth factories has remained low. Gaoyang has been exposed by the "315 party", and the towel industry has been rectified, and the startup rate has been further reduced. Guangdong knitting market continued to be poor, Denim Market occasionally repeated, but the overall trend did not see recovery, is still low. Before June, the market of Jiangsu and Zhejiang was relatively good, mainly Nantong home textile market performed well and Lanxi large factory maintained its start-up. However, after entering July, Nantong took the lead in reducing the start-up, and the cowboy enterprises in Lanxi area also decreased significantly.

As for imported yarn, as of July 30, the spot price of FCY index c32s converted into RMB was 18398 yuan / ton, down 39 yuan / ton compared with last week, and the domestic and foreign prices were inverted and maintained at about 160 yuan / ton. According to the customs data, the number of imported yarn increased greatly in June, with an increase of 50% on a month on month basis. At that time, many domestic traders felt that the main reason for the fall in import prices was that there was a wave of domestic replenishment. However, after the ship arrived at the port, the domestic market was cold, and the port inventory rebounded to more than 20 days.

On the other hand, the U.S. Department of Commerce released its first forecast yesterday, showing the largest ever decline in US gross domestic product in the second quarter, plunging 32.9%. Personal consumption, exports, investment and government spending fell in the second quarter, especially in the areas of health care, clothing and car sales, NBC reported on the 30th. In the past two hundred years, the United States has never experienced such a sharp economic downturn in such a short period of time, and its magnitude is even higher than the capitalist world economic crisis started in 1929 and the US subprime mortgage crisis started in 2007.

From a long-term perspective of development, economic development determines social consumption. The sluggish consumption in textile and clothing markets leads to the difficulty of rising cotton prices and cotton yarn sales. What we can do is to improve the quality of products, reduce the production cost, and expect the epidemic situation and friction to pass as soon as possible.