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    Price Transmission Is Not Smooth, Inventory Continues To Accumulate

    2020/8/3 14:33:00 0

    Weaving Enterprises

    Since the beginning of a month, the cotton market is still weak.

      

    1. Raw material Market

    In July, driven by the rise of international cotton price and the rotation of domestic reserve cotton, Zhengzhou cotton futures price increased significantly, but the demand of downstream market recovered slowly, and the increase of cotton spot price was relatively small. Compared with the same period of last month, the price of cotton grade in the same period of last month was 3125 yuan / ton, which was higher than that of the same period of last month. Due to its high cost performance and meeting the structural demand of the market for cotton, the enthusiasm of enterprises to participate in the bidding is high, and the spot market transactions are rare. It is understood that as of the end of July, the average inventory of raw materials of enterprises surveyed was about one month.

    On July 30, c32s quoted 18535 yuan / ton, down 65 yuan / ton compared with the previous month. The enterprises carried out goods in scattered and small batches, and the sales situation was poor, and the inventory level increased compared with the previous month. Most of the surveyed enterprises had cotton yarn inventory for more than one month. The sales of conventional pure cotton yarn continue to decline, but the sales price of enterprises are still not ideal; the demand for combed yarn is low, and the space for price negotiation is large; the high count yarn is dragged down by the export market, most of the enterprises have reduced production and the quotation is chaotic. Due to the lack of orders, the overall operating rate of the surveyed enterprises was slightly lower than that of last month.

    2. Weaving Market

    There is a strong off-season atmosphere in the weaving Market, the downstream demand has not improved significantly, the inquiry phenomenon in some regions has increased, and the orders are still mainly small and scattered, and the price is stable and weak. The inventory of enterprises keeps accumulating, and the average inventory of grey cloth is about 1 month. In order to maintain normal operation and increase the production of conventional products, the inventory of grey cloth reaches about 2 months, which increases the pressure. The overall operating rate of the surveyed enterprises decreased from last month to about 49%, and the number of enterprises planning to take high-temperature leave increased.

    The price of grey cloth decreased, the inventory continued to increase, and the pressure of enterprise capital increased. From the market point of view, Nantong market orders in July are still small batch, the foreign trade situation is not good, local yarn dyed weaving enterprises orders decreased compared with last month, printing and dyeing enterprises are not satisfied with the future market confidence; Lanxi market purchase and sales is light, order price negotiation space is increased, elastic cloth orders are insufficient, and orders of non elastic conventional varieties are relatively good, enterprises reduce the starting rate Reduce inventory pressure.

    3. Future prospects

    With the gradual recovery of the national economy and the recovery of market economy in most countries, China will gradually recover from the negative impact of the epidemic situation. In the long run, with the gradual improvement of foreign trade situation and China's positive fiscal policy, the textile market will gradually come out of the haze. However, the further tension between China and the United States has intensified market panic in the near future. Judging from the market situation, the prices of yarn and cloth are still weak and are expected to remain weak in the short term.

    (the above contents are from the sample survey of weaving enterprises for reference only.)

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