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    Follow Up Or Not? Textile Enterprises' Mentality Behind The Strong Yarn Price

    2020/10/26 10:52:00 823

    Yarn Price

    In the evening of the 21st, the state announced the import of reserve cotton, and planned to purchase 500000 tons from December 1 to March 31. Although the price difference between internal and external cotton exceeded 800 yuan/ton for three consecutive working days, the trade was suspended and the quality requirements for cotton rotation were still relatively high, it was generally believed that the introduction of the rotation policy was a support for Zheng Mian, so the trend of the night market was particularly concerned. Zheng Mian, however, never lacked surprises. The night market began to dive after a slight shock. The main 01 contract fell to 14350 yuan/ton at the lowest, and then rebounded to a certain extent, closing at 14505 yuan/ton. This unexpected decline can be said to offset some people's concern about Zheng Mian's starting a new round of speculation, and help everyone return to reason and think more.


    Today, Xiaobian also visited two enterprises with 50000 spindles in Xiajin. The products are mainly pure cotton yarn, and one company produces part of Modal yarn. The raw materials are all in about two months. Since the beginning of October, the price of yarn has risen by about 3000 yuan/ton. The cotton has fallen from the high in the past two days, but the cotton yarn quotation remains high. Only the actual transaction will have a discount of two or three hundred yuan. Behind the firmer price of cotton yarn, it also reflects that textile enterprises have been "proud" after a period of destocking, which can turn passive into active. During this period of time, the market was so hot that textile enterprises not only cleaned up the accumulated inventory, but also received many orders. For enterprises with two months' inventory, the actual cotton cost is about 13000 yuan/ton, and the profit per ton of yarn is 2000-3000 yuan/ton, which is very rich in this year's market. Therefore, before the cotton stocks are consumed, almost all the profits can be bagged.


    The purchase strategy of new flowers is related to the cost of cotton in the future, and enterprises are more cautious. Enterprise C has its own ginning plant. When it acquired Hebei and local cotton, the highest purchase price broke through 4 yuan/jin for two days, and fell back to 3.75 yuan/jin on the 22nd, equivalent to about 14500 yuan/ton of lint cost (after deducting the profit of cotton seeds), so it still has advantages in cotton cost. In addition, this year's local cotton padded clothes have a high score and all indicators are good, just in line with the cotton demand of enterprises. Enterprise D's business strategy is also very stable. It bought new flowers in small quantities at the low level before the festival. It believes that this decline is an opportunity. It can replenish the stock in batches at the low level, but it will never catch up with the high level. From the perspective of downstream sales, the enterprise believes that about half of the goods are taken by intermediaries, and many may be stored in the hands of intermediaries, rather than being really digested by downstream demand. Therefore, this is the process of transferring inventory pressure from textile enterprises to traders, and traders are bound to put pressure on the market when selling goods, so they are more cautious about the future market. From the perspective of raw materials, there should also be rotation after rotation. This year, the overall supply and demand is still loose, and it is difficult to see a big increase. Therefore, it is believed that enterprises should ship according to the market, earn their own part of processing profits, and operate steadily, rather than unilaterally gambling on the market.


    This year has been a difficult year for textile enterprises. Bankruptcy and bankruptcy happen from time to time. Enterprises that can run well and operate healthily like these we have run to have their own unique competitiveness and characteristics. They not only focus on yarn quality control starting from raw materials, but also have worked hard and cultivated the market in Jiangsu, Zhejiang, Guangdong and other places for many years, and worked hard for many years. "One step at a time, one cannot reach a thousand miles". Although most textile enterprises do not belong to emerging industries and high-tech industries, they are related to the guarantee of our basic living conditions of clothing, food, housing and transportation. The efforts of generations of textile workers also deserve more attention and respect.


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