Market Analysis: Pay Attention To The Recent Trend Of Domestic Cotton Textile Market

 

However, the increase in the quota of sliding standard tax has a limited impact on the domestic cotton market as a whole. On the one hand, the number of additional issuance is only 400000 tons, which is not much compared with previous years. Moreover, the announcement is significantly ahead of schedule in previous years, which is conducive to market digestion. On the other hand, the quota is only limited to the increase of trade quota, which keeps traders and middlemen out of the door, belonging to point-to-point investment. Due to the strict cotton ban in Xinjiang, for some export-oriented enterprises, there is a rigid demand for imported cotton. This quota is conducive to the cotton textile enterprises to reduce costs, and at the same time, it can also minimize the impact on domestic cotton prices.

Most of the domestic ginning plants are still willing to stand up for the price. Although the demand for repayment of some ginning plants has increased and a small amount of goods have been reduced, the selling pressure is not large for the time being. Downstream demand continues to be poor, the market expectations of the peak season replenishment has not come, textile enterprises to reduce cotton consumption, purchasing willingness is not strong, just need to purchase mainly, raw material inventory is still declining. The overall market situation of cotton yarn market is relatively flat, the downstream demand has not improved significantly, and the shortage of orders has hindered the delivery of cotton yarn. At present, the inventory pressure of yarn mills is generally large, and the inventory days have increased to nearly one month.

Grey fabric, overall gray cloth sales are still light, large single long single is still insufficient, the price center of gravity has been reduced. Due to the small number of new orders, the current stock accumulation of finished products is serious. At present, the inventory days of cotton grey fabric are still maintained at more than 1 month, which is at the highest level in recent five years, and the pressure to go to the warehouse is still large.

In addition, the recent geopolitical turmoil and the conflict between Russia and Ukraine have affected the textile and clothing orders of many countries, and the global cotton consumption may not be as expected. Since March, the epidemic situation in various parts of China has been aggravated, and the terminal clothing retail is facing the risk of order cancellation or delay, and the short-term epidemic situation will further drag down the domestic textile market demand.  

On the whole, the national development and Reform Commission recently issued 400000 tons of sliding standard tax quota, but due to the limited quantity and point-to-point delivery, the impact on the domestic cotton market is limited. At present, the domestic upstream ginning plants are still willing to stand out, and the sales progress of new cotton continues to be slow. The lower reaches of the peak season is not brisk characteristics, textile enterprises mainly to just need replenishment, finished goods inventory continued to rise.  

In recent years, the epidemic situation in many places in China has been aggravated, further hindering downstream consumption. In recent months, under the logic of return of futures and cash, short-term lower support still exists. However, the global production increase is expected to remain unchanged in the next year. The demand growth rate is expected to peak and fall, and the supply and demand pattern will probably turn loose.