Yarn Prices Are Subject To Material Drag And Price Pressure Falls.

Recently, the pressure on upstream raw materials has dropped, dragging down the yarn market. Since the beginning of this week, the price of yarns in Hebei, Shandong and Henan provinces has been running smoothly, and the price of some medium and low yarn prices has dropped slightly, and the market pessimism is still there.

Yesterday (July 9th), Zheng cotton early in the market was driven by an increase in the decline of cotton imports, the afternoon ended in the limit, the day line growth of the Yin line, intra day trading volume enlarged, holdings increased. Affected by the price drop of Zheng cotton, the spot price of cotton spot and reserve cotton also dropped. In July 9th, the average price of cotton reserves was 12773 yuan / ton, down 259 yuan / ton compared with the previous trading day. According to the feedback from Xinjiang enterprises, the quotations for "double 29" and "double 28" machines for picking cotton in the 9-10 days were 14800-14900 yuan / ton and 14600-14700 yuan / ton respectively. In Hebei, Shandong and Jiangsu and Zhejiang provinces, the "double 29" gross price of the machine picked cotton in Xinjiang was 15500-15600 yuan / ton, which was reduced by 100-200 yuan / ton compared with last Friday (5).

The yarn is dragged down, the price continues to bear pressure, and the pure cotton yarn rises abruptly. In July 10th, the mainstream prices of pure cotton yarn 21S and 32S were 20500-20700 yuan / ton and 21300-21600 yuan / ton respectively, compared with July 5th. Many manufacturers said that the recent orders did not improve significantly, especially after the cotton futures and reserve cotton prices plummeted, yarn prices stagflated. A textile company said: "inventory pressure is very large, this week is expected to continue to lower prices."

It is also understood that some PTA factories have stopped feeding and opening up repair recently, and polyester production has been cut down. The price of polyester staple fibers has stabilized slightly. The narrow fluctuation of raw materials has little effect on the market of pure polyester yarn. However, the trading volume is light recently, and the negotiating range is larger under the pressure of shipment, and the price of the polyester staple is reduced to the center of price. In July 10th, the price of T32S in a factory in Shandong was 13200 yuan / ton, down 200 yuan / ton compared with 9 days, and the trading price of ring T/C 32S (65/35) was 16600 yuan / ton, down 400 yuan / ton compared with 9 days.

Because there are many variables in the Sino US trade negotiations, it is not yet certain whether Zheng cotton will continue to explore the bottom. If differences increase, cotton prices may still have some downward space. The downward trend of the yarn market is obvious, the business attitude is pessimistic, and the overall situation is unfavorable to the yarn market. The market expects that the price center of gravity may continue to move downward in the near future.