Cotton Yarn Downstream Consumption Is Not Good, Enterprise Inventory Increases

Zhou (4-8 July)

The growth is uneven. The the Yellow River River Basin has a good weather and cotton grows fast, while the Yangtze River Valley is growing slowly because of heavy rain.

According to market analysis, cotton production in the next year will probably decrease by more than 20%.

Bullish psychology increases.

Due to the difficulty of meeting the market demand, the turnover is still hot, and the auction price is rising. Some enterprises are asking for more input.

Zheng cotton prices fell, as of last Friday, Zheng cotton 1701 contract closed at 14350 yuan / ton, compared with the previous week fell 385 yuan / ton, futures price shocks.

But the market thinks that although Zheng cotton is oscillating, it is still at a higher price.

As of July 9th, the main selling price of real estate cotton in the mainland market was 13800-14200 yuan / ton, Xinjiang cotton was 14250-14600 yuan / ton line, up 50-100 yuan / ton compared with the same period in the previous week.

Real estate cotton has also maintained a high price. Up to now, the price of 3128 grade real estate cotton in Shandong and Hebei in the Yellow River basin is also around 14100 yuan / ton, rising 100 yuan / ton.

Affected by rising prices of raw materials, cotton yarn prices continued to rise during the week.

In July 9th, the price of combs 21S, 32S and 40S in a textile factory in Shandong was 18300 yuan / ton, 19800 yuan / ton, 22400 yuan / ton respectively, and the overall price level rose 100 yuan / ton compared with the previous week.

In addition, the price of some jet spinning and high count yarn remained stable.

In recent years, the stock of raw materials for textile enterprises has increased, most of which have been maintained between 19-27 days, and the inventory of finished products has increased.

According to a textile manufacturer in Hebei, the inventory of medium and low count yarn and conventional yarn has increased rapidly in recent years. Their enterprises now have 17 days of 32S storage, up 2 days from last week.

In terms of external yarn, port inventory has increased over the past week, with a total volume of about 75 thousand tons.

As of July 9th, the price of RMB C32SA+, C21SA+ and OE20S yarn was 21000 yuan / ton, 19600 yuan / ton, 16500 yuan / ton respectively, and the price of India OE21S and Vietnam OE21S yarn was only 14500 yuan / ton, 14300 yuan / ton, which was basically flat compared with last week.

Sales are slightly slow due to the reversal of internal and external yarn prices.