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    The Price Of Yarn Is Weak And Textile Enterprises Are Struggling To Survive

    2020/8/10 19:24:00 0

    CottonZheng CottonYarnCotton YarnPrice

    Recently, the panel price of Zhengzhou cotton CF2009 contract turned downward after breaking through the resistance level of 12500 yuan / ton, cotton price was still suppressed by downstream, and the phenomenon of "price with less market" was more prominent, and spot transaction was cold.

    A cotton enterprise in Changzhou, Jiangsu Province, said that in the past week, the main contract of Zheng cotton increased by more than 500 points. In order to sell as soon as possible, some cotton enterprises reduced the basis (generally 20-50 yuan / ton), but it was difficult to get the recognition and attention of buyers. With the CF2009 contract peaked last weekend, and then broke 12200 yuan / ton, cotton mills' inquiry, point price or basis purchase rebounded.

    Several small and medium-sized textile enterprises in Henan, Hubei, Shandong and other places reflect that, according to the current order receiving situation of weaving factories and garment enterprises, although the ring spun yarn and OE yarn with 40s or less count have almost no profit or even slight loss, some enterprises with domestic sales orders or processing for large factories can maintain production, realize no production stop, no layoff and employment protection. Although the profit of 50s and above high count combed and combed yarn is good and the cotton price is strong, the orders are too few and the requirements are high. Without the support of quantity, the production cost is high. Therefore, for high count yarn, cotton spinning factories mostly set "minimum order quantity" or "fixed spinning" to reduce the risk of cotton yarn inventory and yarn price to a low level.

    A 60000 spindle spinning enterprise in Dezhou of Shandong Province said that although the cotton futures price has rebounded significantly recently, the delivery of cotton yarn and grey cloth is slow, the inventory is picking up, and the domestic sales orders from July to August are "green and yellow". Due to the high cost pressure, some mills have tentatively raised the yarn price by 100-200 yuan / ton, but the actual contract price has not changed. According to the factory, taking c26s-40s as an example, at present, the cotton blending adopts various combinations, such as national reserve Xinjiang cotton + local cotton, imported cotton + National Reserve real estate cotton, Xinjiang cotton + National Reserve real estate cotton, etc., with gross profit of only 100-300 yuan / ton (if 100% Xinjiang cotton, American cotton or Brazilian cotton are used in 2019 / 20, it will lose money), so its ability to bear the rise of cotton price is also lower than 300 yuan / ton or even 100 yuan / ton (provided that cotton yarn is signed and sold) Small and medium-sized mills survive in the gap between the rise of raw materials such as cotton and polyester staple fiber and the low price and slow delivery of gauze.

    Due to the rise of cotton price, textile enterprises generally adopt the following four measures: first, reduce production and wait for the arrival of "gold, silver and ten" in the textile and clothing industry; second, transformation, spinning special yarn, organic cotton yarn or increasing the proportion of blended yarn such as polyester cotton yarn, although the order is small, but the profit is still OK; third, continue to reduce the number of cotton yarn, cotton distribution grade, focusing on raw materials, production and sales Fourth, the global demand for medical anti clothing products and masks is still very strong under the epidemic situation. Therefore, efforts should be made to change production, adjust the product structure and catch up with the "tuyere".

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