Market Dynamics: The Number Of Orders In The Market Remains To Be Observed. The Price Of Cotton Yarn Drops Slightly

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Cotton yarn prices fell slightly. As of August 23, 2024, the market reference price of 21S pure cotton yarn in Shandong Province was 22600 yuan/ton, 200 yuan/ton lower than last week's price, or 0.73% lower; The market reference price of 32S pure cotton yarn was 23500 yuan/ton, down 375 yuan/ton from last week, or 1.57%

Narrow decline in inventory: the current market turnover is slightly better than the previous period, with increased shipments and a narrow decline in cotton yarn inventory of textile enterprises. As of August 23, the yarn inventory of textile enterprises in major regions was 27.4 days, with a decline of 1.79% on a weekly basis. However, the manufacturers said that most of them were profit giving, and the actual profit was insufficient. At present, the market was more stable, and the yarn price was bottomed out and stabilized, and adjusted according to the market.

Start up increase: the market has a compact arrangement of coarse count yarns, and the orders have been maintained until the middle of September. High count yarns have not improved significantly, but just need to be shipped, and the export orders are better than domestic sales. The overall textile enterprises started up in the week. As of August 23, the startup load of textile enterprises in mainstream regions was 69.1%, with a month on month increase of 2.83%.

Part of the price: the OEC16S produced in Xinjiang arrived at 15300 yuan/ton with tickets, the C10S produced in Henan Province arrived at 20900 yuan/ton with tickets, the C40S produced in Henan Province arrived at 24200 yuan/ton with tickets for package bleaching, the C32s ring spinning price in some markets was 21800-22800 yuan/ton, the high tension C40s price was 22800-23500 yuan/ton, and the OE32s package bleaching package dyeing cotton yarn price was 19500-9900 yuan/ton.

In terms of cost: the price focus of cotton this week moved up slightly, and the trading performance was flat; Cotton prices have bottomed out and picked up. Traditional seasonal orders have been issued sporadically. The overall mood of the industry has improved. It is expected that cotton prices will fluctuate in the coming week.

Demand: A small number of foreign trade orders were delivered in succession within the week, and the domestic trade thermal fabric increased slightly compared with the previous period. Most of the orders were just placed, and the overall order quantity was low. Always pay attention to the issuance of new domestic and foreign trade orders. Some grey fabric manufacturers have resumed production after holidays, and the operating rate of the grey fabric industry has risen slightly. However, in the case of weak terminal demand, the operating rate of grey fabric manufacturers still needs to be improved. As of August 23, the operating rate of weaving mills nationwide was 42.3%, up 3.4% month on month. Next week, with the gradual warming of the "Golden Nine Silver Ten" atmosphere, there may be signs of improvement in the on-site construction, but the overall improvement is limited.

Future market outlook: upstream new cotton is about to come into the market, with a strong production increase expectation. The superimposed cotton commercial inventory is higher than the same period, and the cotton supply pattern is loose. The downstream demand is marginally better before the peak season, and the market trading atmosphere is gradually warming up. Weaving factories are opening up, and the demand side is recovering periodically, which has boosted the confidence of the textile market, but the order quantity and sustainability remain to be seen, At present, there are still few new orders in the yarn mill. The upstream and downstream supply and demand are in a weak pattern. The market is lack of favorable conditions, and the short-term yarn price is difficult to show a bright performance. It is expected that the price of pure cotton yarn will run smoothly in the short term, and the price will be stable and rising in the medium and long term.