Yarn and cloth continue to descend

Yarn and cloth continue to descend

Recently, new cotton has been listed in Xinjiang. According to the general manager of a textile company, the new cotton purchased in Xinjiang is already in transit. The transaction price is 16,800 yuan per ton (publicly fixed, gross weight), and the cost of returning to the company will reach 17,600 yuan per ton, which is higher than the original national reserve cotton. The auction price has declined, and the price of the original State Reserve Xinjiang Cotton auction has been around 1.72-1.78 yuan per ton. Although some stocks are in the mainland, the returned enterprises have to reach 1.83-1.85 million yuan per ton. However, the prices of new cotton in Grade 3 in Hebei and Shandong are about RMB 1,000 higher. Despite this, due to the difference in the quality of cotton, Sichuan textile companies still prefer Xinjiang cotton.

Due to the downtrend of the cotton market, the wait-and-see atmosphere of the cotton industry chain has not ended. According to the reports of relevant textile companies, the yarn and cloth market is very quiet, and the prices of various companies are alternately lowered. This week a textile company C 32x21 133x76 66.5 "twill quote 10.00 yuan / meter, down 0.60 yuan; C 40x40 133x72 67" twill quote 7.50 yuan / meter, down 0.40 yuan; T65/C35 20x16 120x60 63" yarn card quote 9.00 yuan / m, down 0.20 yuan; T65/C35 32x32 130x70 67" twill quote 6.90 yuan/m, down 0.20 yuan; T80/C20 21x21 124x67 63" (Sinochem) yarn card quote 7.60 yuan/m, down 0.40 yuan. But there are still Some varieties offer the same price. According to the introduction of the general manager of the textile company, some varieties can still be sold at this price level, and there are also cases where individual products are in short supply. The reason is that there is a demand for the production of seasonal products for printing and dyeing in Houdao. Second, these varieties do not match the industry. In the case of a crash of a similar enterprise, there are currently more than 170 air-jet looms in the textile company, and the variety change is very convenient, together with the smooth sales of seasonal products, so the inventory pressure is relatively light.

As the pressure on industry stocks generally rises and the operating rate drops, the purchase of raw materials is also greatly affected. Recently, the price of polyester staple fiber in various regions in China has dropped to about 9,000 yuan per ton. The output of polyester staple fiber in Sichuan is not large, but the demand is large and the transaction price is relatively high. According to relevant textile companies, this week Huiwei Shi polyester staple fiber prices have dropped to 9,500 yuan/ton, which has dropped by more than 300 yuan from the previous week. This is a recent wave of large declines, but it is also higher than that of the province by 500 yuan.

Recently, the news that the country has drastically reduced cotton import quotas is a common concern in the industry. All the textile companies have reported that such a policy is fundamentally undesirable: “Restricting quotas will reduce the pressure on domestic stocks? Can we limit yarn and cloth imports? If yarn, After the cloth imports are blown out again, can the domestic textile enterprises survive? How can you not digest the national reserve cotton stocks if the spinning companies can't afford to work?” Despite fierce wording, it can be seen that the company is indeed being forced. The truth is also quite straightforward. According to the company's report, in the past, many textile companies in Sichuan received an import quota of 894,000 tons per year. Since the beginning of last year, they have not heard any news. They hope that the relevant state departments will increase the transparency of their policies and give them proper treatment.

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