Cost Impact On Demand Is Not Obvious, Cotton Yarn Fell After Rising In August

1、 Price quotation

According to the data of the business agency, the cotton yarn market rose in August. The price of 21s cotton yarn was about 24700 yuan / ton on the 1st day and 25450 yuan / ton on the 31st, which was 3.04% higher than the end of last month and 34.30% higher than that at the end of last month.

2、 Market analysis

The cotton yarn market rose along with the cotton price in August. Affected by the outbreak of the epidemic at the beginning of the month, the cotton yarn market was weak. After that, the cotton and cotton yarn futures market rose. Yarn enterprises had psychological expectations for high price cotton. In addition, their own inventory was low. Cotton yarn enterprises had strong willingness to stand up for high cotton prices, providing driving force for high cotton prices.

In the middle of the month, with the rise of cotton market, cotton mills raised the price of cotton yarn again. The sharp rise of cotton yarn market led to the increase of grey cloth production cost, and textile enterprises slowed down the procurement and maintained a wait-and-see manner. The new epidemic situation in foreign countries is coming back again, and textile orders are returning to China. In the case of "Jinjiu" peak season approaching, the market has optimistic expectations for the future market, and the confidence of textile enterprises is gradually strengthened. With the increase of cotton yarn price, the transaction resistance will increase and the production profit will be reduced. However, the orders of downstream weaving factories have not been significantly improved, and the follow-up is weak.

At the end of the month, the overseas financial markets fell sharply, consumer confidence plummeted, cotton prices at home and abroad fell, and the cotton yarn market began to fall. Downstream cotton yarn traders inquiry and hoarding enthusiasm cooling, cotton yarn price trend pressure is significantly greater than cotton, enterprise quotation slightly reduced.

3、 Downstream industry chain

After August is the traditional peak season for orders and production in autumn and winter. The textile industry will usher in the peak season of traditional gold, silver and ten, and the inventory of downstream fabric enterprises has not significantly accumulated. After this period of time, the cotton price has risen sharply, the acceptance of raw material price increases has been improved, and generally optimistic about the future market situation. When the peak season comes, the downstream may increase the purchase of raw materials. The high price of cotton yarn at the end of the month makes the downstream grey fabric market trading weak, the production profit of grey fabric end is thin, the business risk of enterprises is increased, and the acceptance degree of high price cotton yarn is reduced.

At the same time, affected by the continuous spread of global epidemic situation, rising prices of international bulk commodities and structural imbalance of global transport capacity, textile foreign trade orders are under pressure, the bargaining power of terminal textile and clothing export orders is weakened, and the downstream pressure may eventually force the upstream to cool down. The early period of jinjiuyin-10 is too high, and the later period is weak. The differentiation of textile mills is more and more obvious. The quotation of large and medium-sized textile mills is firm, and the profit of small enterprises is obvious. Cotton yarn after the market to see downstream orders, short-term fluctuations in cotton prices remain weak.