The cotton yarn slides to the cost of the enterprise dilemma

On May 21, some textile enterprises in the Yellow River Basin and the Yangtze River Valley reported that the capital chain of domestic cotton processing and production is still in tension. The price of cotton yarns and cotton fabrics slides below the cost line. Finished products such as cotton are faced with processing losses. Work stoppages cannot be reconciled. Dilemma. Domestic cotton yarns are in a state of priceless market. Manufacturers are diligently digesting their inventory to avoid further tightening of the capital chain.

The supply of cotton is fundamentally surplus. The demand for domestic cotton stockpiling and stockpiling is not very strong. Imported cotton stocks are a bit strong, but the surplus of cotton supplies has not been fundamentally improved. In recent days, the price of imported cotton has remained at a high level of consolidation, and the high-end cotton trade in domestic ports has been booming. The main reason is that imported cotton is more in line with market demand than domestic cotton in terms of quality and price. Yesterday (20th), Qingdao Port SM1-3/16 reported for 2012/13 was 19,300 yuan/ton, and Australian cotton new flower M1-5/32 was reported at 19,500 yuan/ton. The quality is general and there is room for price negotiation. Dealers report that the current inquiry is acceptable. Indian cotton S-61-5/32 reported 17600-17700 yuan / ton, the price is relatively implicit, taking the goods is not fast. The current domestic and foreign cotton prices have fallen to less than 2,000 yuan/ton from more than 3,000 yuan/ton at the time of the Spring Festival. The main cotton price of Zhengzhou 1501 was stagnated near 16,000.

Increased production and restricted production of textile enterprises increased into May. Most domestic companies still raised their volume by lowering their quotation, but they did not produce much. Not only did the production volume continue to decrease, but more and more differentiated cotton yarn products were produced. In terms of domestically produced cotton yarns, the current situation of domestic cotton yarn enterprises continues to deteriorate, and pure cotton yarn products survive the attack of blended yarns and imported yarns. The mill's enthusiasm for production and processing is low, mainly in the middle and low yarn products. The pressure of conventional carded cotton and coarse yarns is too high. The market price of high-grade cotton yarns, combed cotton yarns, and high-count yarns (fine-count yarns) since late May does not appear to be lower than that in the previous period. The average price reduction range is 200-300 yuan/ton. At present, the demand for imported yarn is relatively high in some regions. The fact that traders have relatively low stocks in the hands causes prices to rise slightly by RMB 100-300/ton. It is expected that the imported yarns will not have the possibility of further upward adjustment.

Imported yarn supply and demand exactly balance the imported yarn varieties staggered production strategy more in line with market demand. The imported yarn market is currently stable, and the inventory of goods in the hands of small and medium-sized traders is lower than the normal value. The two factors of low stocks and moderate prices support the development of the prices and volume of imported yarns. The price of imported yarns by individual traders since the end of May had a modest increase of around RMB 100/ton, and the main supplier was affected by the tight supply, but the overall shipment was generally low. The buying and selling atmosphere in the domestic cotton yarn market is relatively flat. The price difference between imported yarns and domestic yarns on carded ring-spinning textiles continues to shrink. At present, 32 domestic yarns are 800-1000 yuan/ton higher than imported yarns, and the price gap between them is reduced by 300-400 yuan/ton compared with the previous month. However, the price advantage of imported yarn is still evident. According to the market reaction, the demand for cotton yarns of downstream weaving enterprises is relatively stable, but the gap between the quality of imported yarns and domestic yarn products is small, and the price gap is also greatly reduced. The intense competition has caused the domestic yarn prices to fall slightly.

The demand for cotton yarn was lower than that in the middle and mid-May of the previous year. The provinces of Guangdong, Fujian, Jiangsu, Zhejiang, Shandong and other provinces slightly accelerated their shipments of pure cotton yarn, but they were still inferior to the peak season level in previous years. The market reflected that the total amount of cotton yarn demanded by downstream fabricators was relatively normal in May, but due to the diversion of imported yarns to the domestic yarn market, the domestic yarn market demand was still weak. The cotton grey cloth market did not change its weakness and trading remained light, with only a small amount of restocking. The overall market price of cotton yarn tends to be downgraded, and the degree of profit loss from cotton yarn processing continues to deepen.