Market Dynamics: Cotton Textile Market Just Needs Replenishment, Production And Sales Continue To Be Weak

At present, the world economic and trade situation is still complex and grim. The new coronavirus mutation, tight supply chain, accelerated inflation and rising commodity prices have increased the threat to economic growth. China's economy has been recovering steadily. However, there are new downward pressure on the economic operation, and it is facing many challenges to maintain stable operation on a high base. In order to timely track the operation of cotton textile enterprises and understand the changes in the cotton textile market, recently, China Cotton Textile Industry Association conducted a large-scale survey on major cotton textile related markets in China for the 29th time. The following are the reflections of local markets, cotton textiles and related enterprises:

　　 Raw material Market

Xinjiang cotton: Recently, the domestic cotton spot market is relatively low, and the cotton quotation in the new year is gradually increasing, and the quotation of Xinjiang 3128b hand picked cotton is about 22000 yuan / ton. With the re upgrading of epidemic prevention and control and the cold snowfall in most areas of Northern Xinjiang, the export of new cotton will be affected to a certain extent. At present, the downstream market is still cold, cotton textile enterprises to supplement the library is expected to weaken, the cotton market is expected to maintain a light Market in the short term.

Jiangxi viscose: viscose staple fiber market stable, sales to viscose yarn factory just need replenishment. According to the difference of quality and settlement method, the price of viscose staple fiber is 12800-13000 yuan / ton. Due to the repeated epidemic situation, especially the foreign new coronavirus Omicron has a certain impact on the downstream market confidence. It is expected that the stable and relatively flat market in the near future will be maintained until the end of the year. The downstream mills have a strong wait-and-see mood and purchase more cautiously.

Jiangsu polyester staple fiber: the price of polyester staple fiber remains weak, and the current price is about 6900 yuan / ton, which is higher than the recent low of 6770 yuan / ton. The influence of "dual control" continued, and some production lines were shut down due to limited power and sales. Staple fiber prices continue to fall, some enterprises put into production new production lines, production enterprises fight price war, downstream just need to replenish, deal according to the order to negotiate.

　　 Yarn Market

Jiangsu vortex spinning line: the production of the enterprise is at a normal level, the performance of vortex spinning viscose yarn is general, and the blended varieties are relatively good. It is expected that the current dull market will continue for a period of time, and the enterprise pressure will increase.

Shandong cluster pure cotton low count yarn: the overall operation of the enterprise is normal, the cotton price is temporarily stable in the near future, and enterprises purchase on demand. At present, the market purchase and sales are flat, and the power restriction situation has been alleviated, but the basic principle of yarn supply exceeding demand has not changed, and the enterprise's profit is low. Non order production enterprises yarn sales slow, inventory is high, combed Siro yarn sales situation is better than ordinary cotton yarn. It is expected that the price of raw materials will continue to decline in the future, but there will be no significant fluctuations.

Jiangsu high count yarn: the production and sales rate of Jiangsu high count yarn is normal, which can reach more than 90%, but the profit is less than that of the same period in previous years. Domestic sales are slightly insufficient, and the foreign trade market is better than the domestic market. With the decrease of cotton inventory, the price of new cotton is higher and the profit is compressed. Whether the late market is good, enterprises are still waiting to see.

Shandong differential yarn: at present, the market is in the off-season, the orders are reduced, and the delivery time is 1-2 months. The enterprise starts with full load. Most products are order spinning, and a small part are ordinary products. The product price is adjusted according to the market situation. Due to the lack of domestic demand and the increase of enterprises producing differentiated products, the market competition pressure is increasing, and enterprises are not optimistic about the future market situation.

Peixian viscose yarn: the market purchase and sales of viscose yarn are slow, and the downstream market is not confident enough. At present, it is mainly based on rigid demand. The quotation of ring spinning r30s is mostly in the range of 17800-18300 yuan / T, so the negotiation space is expanded. Weaving mill inventory accumulation, shipment psychological enhancement, the current market has no obvious signs of improvement, the short-term market is expected to remain weak.

Henan pure cotton yarn: in the near future, the production of pure cotton yarn is basically stable, but the transaction is less, the price of cotton yarn is weak and downward, and textile enterprises still focus on de stocking. Downstream demand is still low, and small batch purchase is needed. Due to the fluctuation of market price, the order is unstable, and the wait-and-see sentiment is strong. It is expected that the current situation of light production and sales will continue until around the Spring Festival, and enterprises have high inventory and look forward to the market after the Spring Festival.

Jiangsu color spinning: in recent years, the overall operation of color spinning market has been stable, with the operating rate of more than 90%. At present, the orders are in the transitional period between spring and summer and autumn and winter, and the inquiry is insufficient, and the trading atmosphere is still low. But overall, this year's orders are better than last year. At present, most downstream customers are developing new versions for next autumn and winter. It is expected that orders will increase before and after the Spring Festival.

Fujian non cotton yarn: in the near future, the market price has shown a more obvious decline, in which viscose staple fiber raw materials have a more obvious decline. The order situation has not been restored and the market vitality is not good. Affected by the Omicron variant, the market is not confident enough in the future market, and it is still facing challenges in the future.

Xinjiang pure cotton yarn: at present, the enterprise production is normal, yarn inventory continues to increase slightly, and the sales situation is more and more severe. Cotton to maintain rigid demand, procurement on demand. Near the end of the year, the downstream customers will have more and more market pressure without the support of orders. The enterprise should first ensure the opening rate, follow the market price, adjust the product structure in the later stage, and improve the yarn count.

Guangdong cotton yarn: yarn inventory increases, raw materials are purchased with use, dare not accumulate a large number of stocks, the current cotton price volatility, further decline risk is still very high. As the enterprise's early yarn mainly uses reserved cotton as raw material, the profit is relatively guaranteed. If the new cotton spinning yarn is purchased according to the current market price, there is no profit basically, and the company is cautious about the future market trend.

　　 Fabric Market

Jiangsu grey cloth: the opening rate of enterprises is more than 95%, and the order on machine is about 10 days. With the decline of raw material prices, customers wait and see to place orders near the end of the year, focusing on the withdrawal of funds. Long staple cotton, horse cotton, Australian cotton 60 yarn prices remain high, tight supply, the price of this kind of grey cloth slightly increased, but sales are relatively flat, new product quotation and order less. It is expected that before the end of the year, brands and cloth companies will place fewer orders.

Guangdong denim: Recently, denim yarn price has shown a downward trend, oec10 British cotton yarn price is about 17000 yuan / ton, the price of indigo dye is running at a high level, the operating rate of the enterprise reaches more than 95%, the downstream inquiry volume is more, and the order is more cautious. At present, enterprises mainly focus on clearing inventory to prepare for the Spring Festival holiday. Sales are relatively smooth and inventory is slightly down.

Lanxi grey cloth: yarn price fell, trading is still depressed, market just need to purchase. Affected by factors such as buying up or not buying down and payment collection near the end of the year, the market's wait-and-see mood is rising, terminal orders are light, inventory is further increased, and production and sales are unbalanced. Some enterprises have taken the initiative to control production capacity. Near the end of the year, the risk of the epidemic continues. It is estimated that the market situation before the year is not optimistic. If the market continues to be depressed, enterprises will not rule out the possibility of early holiday.

Jiangsu yarn dyed fabric: the overall market is weak, and the opening rate is basically stable. The price of raw materials in the upstream fluctuated at a high level, and the yarn price decreased. Among them, the price of high count pure cotton yarn dropped significantly. The downstream customers had a strong wait-and-see mood and placed orders cautiously. The enterprises did not have enough orders and the fabric prices were loose. The increase of production costs, the rise of people's rate and exchange rate, combined with the rise of sea freight, have put pressure on the profits of enterprises. For the future market, the support of enterprise confidence is limited, and they are more cautious and wait-and-see attitude.

Hubei pure cotton: Recently, the market is light, the price of raw materials is weak, and the price of grey cloth is becoming loose, and the pressure of enterprises is increasing. Downstream wait-and-see sentiment is still strong, there are a small number of small orders, currently maintain a low opening rate, product inventory began to accumulate. At present, the domestic and foreign markets are under great pressure, and it is expected that this state will continue and the future market is not clear.

(source: China Cotton Textile Industry Association)