Blank Market: In October, The Prices Were All On-Line, And The Market Temperature Was Obvious

In the past month, the domestic cotton price has risen sharply, which has led to the rise of cotton yarn price, the rise of grey cloth price, the increase of market purchase and sales, the shortage of supply of some products, and the increase of enterprise operation rate.

1. Raw material Market

In the past month, domestic cotton prices have risen sharply driven by factors such as rising seed cotton price, international cotton price strengthening and downstream demand warming. On October 15, the domestic price of 3128b cotton was 14770 yuan / ton, up 1940 yuan / ton compared with the same period of last month. Due to the high listing cost of new cotton, textile enterprises are unable to bear the price of new cotton, so they still choose the cotton in 2019 / 20 for replenishment of raw materials, and the purchase intention has improved on the whole. Before the National Day holiday, some enterprises concentrated on replenishing the stock, but still focused on small batches, and the overall inventory did not increase significantly. At present, the inventory of raw materials of enterprises surveyed is maintained at about one month.

The overall performance of the cotton yarn market is good, the sales are smooth, and the inventory of textile enterprises is low. After the national day, cotton yarn prices generally rise. However, due to the rise of cotton prices, the profits of textile enterprises have not been effectively improved. In terms of varieties, the sales of conventional pure cotton yarn are smooth, and some products are in short supply. The transaction price of high count pure cotton yarn is generally increased by 500-1000 yuan / ton after the national day; the sales of high count pure cotton yarn is better, and the transaction price of some varieties is increased by more than 1000 yuan / ton; the performance of air spinning cotton yarn is relatively weak, and the price increases by 200-500 yuan / ton after national day. The yarn inventory of the investigated enterprises was controlled within one month, and the starting rate was raised to about 80%.

2. Grey fabric Market

Grey cloth market operation overall stable, with the national day before the change is not big. At present, the orders of weaving enterprises are mainly small orders and bulk orders, and the prices have risen slightly, and the loss situation of enterprises has improved compared with the previous period. On the whole, the market sales of conventional varieties are stable, and the sales of home textiles and knitted products are relatively good. Some orders of enterprises have been arranged to December, mainly in winter, with less inquiry for orders in spring and summer, and there is still pressure on the connection of follow-up orders.

From the survey of enterprises, the inventory of conventional varieties decreased slightly compared with the same period of last month, with an average of about one month, and the startup rate rose slightly. However, from the perspective of downstream orders, there is still a certain gap compared with the same period in previous years, and the downstream is not optimistic about the future market, and there is still a risk of rising inventory in the later period. In terms of yarn procurement, most enterprises purchase according to the order, mainly to buy as you go, so as to reduce the capital occupation rate.

3. Future prospects

Before the national day, the United States once again announced the postponement of sanctions on Xinjiang cotton, which eased the tension in the early stage of the market. China's PMI was 51.5% in September, of which the index of new export orders rose above the boom and bust line for the first time this year, setting a new high since June 2018. Domestic demand and exports continued to pick up. However, the recovery of the manufacturing industry is not balanced, and the textile and clothing market is relatively weak. At the same time, there is still uncertainty about the sanctions of the United States on Xinjiang cotton, and there is still pressure in the later stage of the market.

(the above content is from the sample survey of grey fabric enterprises, for reference only.)