What Is The Situation Of Textile Enterprises?

In the middle of August, cotton in some areas of Xinjiang and the mainland successively opened bolls. Less than a month and a half from the new cotton listing in 2020 / 21, the cotton processing enterprises' machinery maintenance, capital preparation, fire control and safety personnel training and other work are in an orderly manner. According to the survey, due to the recent high temperature and limited production of cotton textile enterprises, weak cotton yarn volume and price, Xinguan epidemic situation and the increase of uncertain factors in the peripheral environment, the main contract of Zhengzhou cotton was also recalled to around 12700 yuan / ton. The enthusiasm of purchasing Xinjiang cotton spot with the basis price of cotton enterprises was not high, and the turnover was relatively weak.

In recent days, through a simple survey of several downstream cotton spinning mills with 20000-100000 spindles, the current situation of cotton spinning is summarized as follows:

First, due to the warmer foreign trade orders in Guangdong, Jiangsu and Zhejiang provinces and other coastal areas, the consumption demand for high-grade yarn shows a small and phased growth. The digestion and acceptance ability of textile enterprises for high-grade lint such as "double 28 and double 29" is significantly improved compared with may and June, but the large orders, long-term orders and high value-added orders are less, which worries textile enterprises.

Second, in Shandong, Hebei, Henan, Hubei and other large textile provinces, small-scale cotton mills and cloth mills are increasingly prominent due to the lack of additional orders due to high temperature. However, in sharp contrast to the gradual withdrawal of small factories, large factories are expanding and rapidly occupying the customers and markets of small factories.

Third, cotton yarn products continue to decline trend. A large textile enterprise in Ningbo said that at present, in addition to some profits from special yarn, organic cotton yarn and new fiber yarn, almost all combed yarn with 50s and above and high matching general combed yarn are in deficit. Therefore, since July, the high count yarn factory of the factory has only accepted "fixed spinning" orders, reducing the risk of high count yarn occupying capital and difficult payment collection. Jiangsu, Shandong and other yarn mills reflect that, in addition to c21s-c40s yarn inquiry and transaction relatively concentrated (including 26S), OE yarn and low count ring spun yarn accumulation phenomenon is more serious, in order to not stop production, ensure employment, not layoff, only reduce yarn count and cotton distribution.

Fourth, some textile enterprises have the demand of appropriate amount of cotton replenishment in August and September, but due to the depression of cotton yarn price and sales volume, they expect to place an order in the cf1201 contract falling to around 12500 yuan / ton.