Although The Market Is Slowly Recovering, Short-Term Cotton Yarn Trend Reversal Resistance Is Still Large.

In the autumn of September, more than half of Kim Gu's textile industry seems to be somewhat lacking in color. At present, the yarn market is hard to say, but the stock pressure has eased slightly, but the yarn price has continued to decline. Spinning enterprises have been saying that profits are thin, business is hard to do, the market atmosphere is light, and pessimism is spreading.

Prices will fall first.

According to my agricultural product network, the mainstream price of viscose staple fiber in the market is currently 10550-10600 yuan / ton, and the mainstream price of R30s is 15250-15300 yuan / ton. Since the beginning of the year, sticky short prices have been showing weakness. Although the price of chemical fiber industry chain has risen slightly recently, the overall price curve is still in a weak position, and the price of yarn has stabilized.

With the increase of the capacity of the industry and major enterprises, textile enterprises are sure to be able to place their orders in order to achieve peace of mind, while the demand side performance has not yet been transmitted. However, the price is difficult to exchange for a large number of, but not fast enough. Downstream customers still have small single outflows, but most of them are just needed replenishment. And considering the cost, manufacturers offer more stable prices, but the actual transaction is far lower than this price, the largest negotiated offer is still at least 300-500 yuan / ton.

Insufficient demand and stamina

Figure 22019 cotton textile sales statistics in Textile City

According to my agricultural product network, the sales volume of cloth market people is still not improving, and the overall trend is relatively mild. According to the preliminary investigation in Guangdong, the downstream orders were slightly better than those in the previous year, but fell by nearly 2-3 compared with the same period in the previous year. The performance in the peak season has shrunk seriously, and the weakness in the demand side has led to a more difficult environment for the textile industry.

Although there is uncertainty in the current macro environment, the pressure on finished inventory is still hard to digest in a short time, which makes the manufacturers dare not rush to replenish the goods. At this stage, there are many manufacturers who ask prices, but the actual volume is relatively small. Many traders say that because of their own financial pressure, they can not accept low price competition, stop shipping and wait for the market to flourish.

Warehouse pressure eased slightly.

Figure 32019 national yarn statistics of textile enterprises

According to my agricultural product network, the overall yarn stock of the current market is about 25 days, and the upper warehouse pressure has been relieved gradually, and the shipment has also increased slightly. The average load rate of the cotton mill is around 8, which has picked up slightly in the earlier stage.

Logically speaking, smooth shipment should indicate the coming of the peak season, but at the present stage, inventory digestion is mostly the result of letting sales promotion. According to spinning cost accounting, the profit of human cotton yarn came to a new low in June this year, and the profit of the industry dropped sharply. Although the price has picked up recently, the downstream customers are buying it at a price. In order to ensure the shipment and stabilize the source of tourists, the cotton mill can only reluctantly give up, and strive to maintain the balance of production and marketing.

To sum up, the price of viscose market has stabilized, and the yarn turnover has improved. However, the market mentality is still pessimistic. The resistance of short term cotton yarn market is still larger. The enthusiasm of downstream purchasing is not high, and the demand for off-season is still maintained. In addition, Sino US consultations are continuing, and viscose staple and cotton yarn will continue to maintain this price in the short term.

However, at the recent stage, the profit margins of the manufacturers were still moderate, and the demand performance was slightly warmer, and the market slowly recovered. In recent years, blended yarns and all kinds of new fibers have been sought after. The use frequency of human cotton yarn is getting higher and higher. Moreover, as a large garment country, China has a huge market volume. Although the sales volume of clothing in the first half of this year has obviously declined, the number of the total demand for single volume is not small, and the textile enterprises still have expectations for the future market.