Why Is Cotton Yarn Price Stable And Gradually Low?

Since the beginning of this year, affected by the new crown pneumonia epidemic and the adverse situation of Sino US relations, the spot price of cotton market fluctuated continuously, but the cotton yarn market failed to follow the market. This is undoubtedly a great pressure for textile operators who are still struggling to keep the machines running, the enterprises from collapsing and the employees eating.

According to the understanding of some mills in Yancheng, Jiangsu Province, with the scale of 20000-50000 spindles, the price of cotton yarn, especially the combed yarn, has remained unchanged in the changing cotton market. In the last ten days of July, the average ex factory price of the local textile enterprises' combed 32S is about 18500 yuan / ton, even if there is any adjustment, the range is very small. According to this price, the profit of enterprise is limited except cotton cost and labor cost. The market and sales of high count yarn are also cold. Textile enterprises of different sizes are sticking to the principle of fair price sales, and the inventory of raw materials and products is kept to the minimum.

At this stage, the recovery of domestic textile sales and the temporary improvement brought about by the transfer of foreign trade to domestic sales are neither the essence of the market nor can it continue for a long time. Many small and medium-sized enterprises reflect that the situation of receiving orders in the near future is more difficult than that in the first half of the year. Industry analysis shows that the distribution of domestic cake, the imprisonment of foreign trade, and the future changes of Sino US diplomatic and economic and trade frictions are unpredictable. There are many uncertainties in the operation of the textile industry, and the current and future fatigue of the textile industry will be reflected and developed.

After entering the second half of the year, due to the closure of downstream foreign trade market and sluggish high-end consumption, the production and operation situation of some textile enterprises is not ideal. In the middle and low-end textile and clothing manufacturing sector, in addition to the production and sales of protective textile products for medical and health needs, such as surgical clothes, protective clothing, masks, etc., the production of yarn products for other industries, such as clothing, bedding, toys and so on, has been reduced due to the obstruction and poor sales of the downstream, resulting in the low start-up rate, slow delivery and sluggish consumption level Tourism production is difficult to increase, and the price has no room to rise.

From the long-term perspective of development, economic development determines social consumption. The downturn of textile and clothing market consumption leads to the difficulty of cotton price rising and cotton yarn selling and rising. What we can do is to improve the quality of products, reduce the production cost, and expect the epidemic situation and friction to pass as soon as possible.