Market Analysis: Why The Trading Volume Of Pure Cotton Yarn Market Is Gradually Declining

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The turnover of the pure cotton yarn market has gradually declined, and the downstream has been on holiday, so the market atmosphere has cooled. The current inventory of cotton spinning enterprises is generally low, and some factories are in the process of production. The market of all cotton grey cloth is weak as a whole. Some textile mills report that new orders are available after the year, but the inquiry for export orders is still insufficient. The textile mills believe that the improvement after the year may be limited.

Under the pressure of the weakening macro-economy and the further accumulation of global cotton stocks, the overall trend of American cotton is still empty. Orders in the domestic market have not yet seen substantial positive results, and the sustainability of the rebound market driven by funds needs to be verified. There is pressure on Zheng Mian to withdraw speculative funds and hedge.

The International Cotton Advisory Committee (ICAC) released a report in January that 2022/23 is a difficult start for the cotton industry. In terms of production, the United States and Pakistan suffered from drought and flood damage respectively, while West Africa faced serious pest infestation. All these have caused serious damage to crops.

In terms of consumption, the fear of economic recession still keeps governments busy controlling inflation, and the decline of employment in retail, transportation and storage industries is also worrying, especially when many other industries resume recruitment. At present, ICAC estimates that the global cotton output is 24.27 million tons, and the consumption is 23 million tons, with the output higher than the consumption of 1.27 million tons.

According to the national cotton trading market, as of January 5, 2022/2023, Xinjiang has processed 4.3665 million tons of cotton, an increase of 42500 tons over the previous day, and a decrease of 551400 tons over the same period last year, a year-on-year decrease of 11.2%.

According to China Cotton Notary and Inspection Network, as of January 5, 2022, there will be 1030 cotton processing enterprises in the 2022 cotton year to process cotton and conduct notarial inspection in accordance with the requirements of the reform plan of cotton quality inspection system. 14772621 bales of cotton have been inspected nationwide, a total of 3.3321 million tons, an increase of 81800 tons over the previous day, a year-on-year decrease of 30.4%, of which 14552607 bales were inspected in Xinjiang, A total of 3.2829 million tons, 80100 tons more than the previous day; The inspection volume in the mainland is 220014 bags, a total of 49200 tons.