According to feedback from several cotton spinning mills in Shandong, Henan and other places, as the main ICE cotton futures contract fell below 85 cents/pound, the Zheng cotton CF2105 contract fell below the 15,500 yuan/ton round mark, 3-5 Domestic and domestic sales orders in the month were lower than expected, and weaving mills’ enthusiasm for inquiry and delivery of cotton yarns has significantly cooled down. Some yarn mills have taken the initiative to lower their cotton yarn quotations due to overstocking of gauze or insufficient short- and medium-term orders after the Spring Festival. The entire cotton yarn and gray fabric market has been in a state of “rainy weather is coming” with the wide-ranging correction of raw materials such as Zheng cotton and polyester staple fiber. building” situation.
A yarn mill in Jiangsu said that since March, although the quotations of imported cotton yarn from India, Pakistan, Vietnam and other places in the light textile markets of Jiangsu, Zhejiang, Guangdong and other places have fallen slightly, it is still difficult to complete transactions. Bonded + customs clearance cotton yarn stocks continue to rise, exacerbating enterprises’ concerns about the decline in domestic cotton yarn prices.
Judging from the survey, some cotton textile companies are in a dilemma. On the one hand, downstream cloth mills, fabrics and clothing purchasers are demanding price cuts. On the other hand, prices have been adjusted several times in just over a week from the end of February to early March. If the company continues to significantly reduce the price of cotton yarn and blended yarn, the company’s reputation and ability to enforce contracts will be questioned.
A textile company in Zhengzhou, Henan said that the Zheng cotton CF2105 contract has fallen by more than 1,500 points (spot quotations from ginners and traders have fallen by 800-1,000 yuan/ton). According to renewed discussions with downstream customers, Negotiating the contract price (when the price of cotton rises or falls by more than 800 yuan/ton), the factory plans to lower the price of carded yarn by 200-300 yuan/ton to test customer reaction. If it is difficult to accept and digest, the reduction may be expanded to 300-500 yuan/ton. Yuan/ton, after all, the prices of cotton, polyester staple fiber, viscose staple fiber, etc. fluctuate widely, which will have a relatively large impact on the entire cotton textile, clothing, foreign trade and other links. The upstream and downstream industrial chains need to work together to deal with it. </p
