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    Up Or Down? Spinning Enterprise'S Mentality Behind The Strong Yarn Price

    2020/10/26 10:52:00 0

    Yarn Price

    On the evening of the 21st, the state announced that it would purchase 500000 tons of cotton from December 1 to March 31. Although there are three consecutive working days when the difference between domestic and foreign cotton prices exceeds 800 yuan / ton and the quality requirements of cotton rotation are still high, it is generally believed that the introduction of the rotation policy is a support for Zheng cotton, so the trend of the night market is particularly concerned. Zheng Mian never lacked surprise. The night trading began to dive after a small shock. The main contract 01 fell to 14350 yuan / ton, and then rebounded to a certain extent, closing at 14505 yuan / ton. This unexpected decline can be said to offset some people's worries about Zheng Mian's new round of speculation, which helps everyone return to rationality and think more.


    Today, Xiaobian also continued to visit two enterprises with 50000 spindles in Xiajin. Their products are mainly pure cotton yarn, and one produces part of modal yarn. The raw materials are all in about two months. Since the beginning of October, the yarn price has increased by about 3000 yuan / ton. In recent two days, cotton has dropped from the high level, but the cotton yarn quotation is still high. Only the actual transaction will have a discount of RMB 2300. Behind the firmer price of cotton yarn, also reflects that after a period of time to inventory, textile enterprises have been "elated" and can turn passive into active. During this period of time, the market is booming, which makes textile enterprises not only wipe out the accumulated inventory, but also receive a lot of orders. For enterprises with two months' inventory, the actual cost of cotton 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, in the inventory of cotton before consumption, almost all profits can be bagged for safety.


    And the purchase strategy of new flowers is related to the cost of cotton after, enterprises are more cautious. Enterprise C has its own ginning plant to purchase cotton from Hebei and local areas. On two days, the highest purchase price broke through 4 yuan / Jin, and fell to 3.75 yuan / Jin on the 22nd, equivalent to about 14500 yuan / ton of lint cost (after deducting cottonseed profit), so it still has a comparative advantage in cotton cost. Moreover, this year's cotton clothing score is high, at the same time, all indicators are good, just in line with the cotton demand of enterprises. Enterprise D's business strategy is also very stable, in the low before the festival to buy a small number of new flowers, think that the decline is an opportunity, can be in low batches replenishment, but never catch up with the high. Enterprises think that from the perspective of downstream sales, about half of the goods are taken by middlemen, and many of them are stored in the hands of middlemen, rather than really digested by downstream demand. Therefore, this is the process of transferring inventory pressure from textile enterprises to traders, and traders will inevitably form pressure on the market when selling goods, so they are more cautious about the future market. In terms of raw materials, there should also be rotation after the rotation. This year, the overall supply and demand is still loose, and it is difficult to see a big rise. Therefore, it is considered that enterprises should follow the market to make their own part of processing profits and operate steadily instead of unilateral gambling.


    This year has been a difficult year for textile enterprises. Bankruptcies and bankruptcies occur from time to time. The enterprises that can run well and operate healthily like the ones we run to have their own unique competitiveness and characteristics. They not only pay attention to yarn quality control starting from raw materials, but also strive and cultivate markets in Jiangsu, Zhejiang, Guangdong and other places for many years. Although most textile enterprises do not belong to emerging industries and high-tech industries, they are related to the protection of our basic living conditions of clothing, food, housing and transportation. The efforts of generations of textile workers deserve more attention and respect.


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