Low Market Demand Further Narrowing Of Price Gap Between Inside And Outside Yarn

After the good news of Sino US trade, the market has been buoyed up for several days, but the market has been weakening again recently, and the market mentality has been restored cautiously. As of July 25th, the domestic C32S average price was 21222 yuan / ton, down 20 yuan / ton compared with last week. Pure cotton yarn can not be raised, the price will be calm. Manufacturers said that the characteristics of the recent pure cotton yarn are high and high price, stable price and small orders, and the production of old orders is the main. Sales of medium and low branches and low grade yarns are still available, but the profits are low and individual costs are upside down.

Tracking enterprise data shows that 1-6 months, sales of yarn decreased by 8.96% compared with the same period last year, and sales volume decreased by 5.47% year-on-year. As the downstream orders have not changed significantly, the market wait-and-see sentiment is still strong, and some parts of the region enter the peak period of summer electricity consumption, the production of electricity is affected, and the rate of opening up is still widespread. Up to now, China's yarn stock index is about 23 days, and the starting rate is 57.1%. Many textile enterprises take measures to deal with them positively, protect their profits after production, and make every effort to ensure orderly production, smooth capital turnover and stable staff turnover.

From the view of raw cotton, the good news of Chinese enterprises purchasing agricultural products in the United States was released again on the evening of 21, causing the sharp rise and fall of Zheng cotton futures. On the 22 day, the main CF109 of zhengmian increased about 265 yuan / ton, or 2.04%, at the end of 13230 yuan / ton. On the 23 day, it closed down at 13080 yuan / ton. On the 24 and 25 th, the CF109 contract jumped back to the 13255 line. However, allowing futures to "run wild", the spot is still limited, the price volatility is not big, there is no market price. According to feedback from local textile enterprises and middlemen, recent enquiries and purchases have been significantly reduced, mainly because we still have no confidence in the market outlook and worry that the price of lint will fall again. A few enterprises that replenish raw materials are also different in terms of their own business conditions. Cotton textile raw materials with relatively good operating conditions are relatively high inventory of raw materials, mainly in order to maintain the consistency of cotton blending quality. The raw material inventory of textile enterprises with weak operating conditions is very low. Some of them consider suspension of production and vacation, and reserve cotton can mainly meet the requirements of production. No matter what kind of procurement strategy, the purchasing mentality of textile enterprises is generally cautious, and the control of raw material procurement cost is further tightened.

Generally speaking, the 7-9 month is the peak season for China's textile and clothing sales, which is conducive to the bottom up of the price of gauze. However, in recent years, the sound of real economy has been fermented every once in a while, but this year it is more intensive. According to a US data, as of July, 7062 retail outlets in the United States were closed this year, and the number of stores closed for the whole year is expected to reach a record 1.2. Many garment enterprises responsible person said that due to the serious homogenization of goods, in the competitive environment of imitation, the life of clothing products is becoming more and more short. In July this year, the large wholesalers, garment factories and shops that were closing down everywhere are encountering another wave of "closing stores". Under such a big background, although the stock of grey fabric has declined this week, the rate of starting up has also been decreasing.

Comparing domestic and foreign cotton yarn, the domestic yarn with 30%-50% reserve cotton still has strong competitiveness, and is still the first choice for downstream enterprises. But with the narrowing of the price difference between imported yarn and domestic yarn, and the stock of reserve cotton is few, the impact of outer yarn will become more intense. According to the survey, 7 mid month late, the domestic medium-sized textile enterprises C32S yarn offer 21700-21900 yuan / ton (national cotton and cotton assorting cotton accounted for more than 50%), and port C32 high package bleaching India, Vietnam, Pakistan yarn quoted price is also more than 21800-22000 yuan / ton, comparatively speaking, imported yarn quality index is good, dyeing consistency is high, grey fabric, fabric enterprises preferred imported yarn. In addition, according to port traders, since June of this year, China's main port logistics area and bonded area are full of yarn, most of which are stored at more than 100 thousand tons. By the end of July, it had reached a historical high of 120 thousand tons.

To sum up, the recent Sino US trade has good news, but for the domestic yarn in the off-season, the negative pressure is still greater. It is too early to say "rising" in the off-season, and the prospects for Sino US trade remain great.