Market Situation: Cotton Yarn Market Follows The Cost Shock

2023/10/3 19:59:00 14

The cotton yarn market follows the cost shock. The current "golden nine and silver ten" peak season is not good enough. The new orders of downstream textile enterprises are less than expected, and the overall level is lower than that of the same period in previous years. Most of them keep small orders, and it is difficult to increase the price of cotton yarn. When the spinning profit of the mainland textile enterprises is lost, the quotations are mostly stable, and there is still room for actual negotiation. At the same time, with the sharp rise of domestic cotton prices, the cost of cotton used by textile enterprises has increased, and the ability and willingness to accept high priced cotton are not strong. Chemical fiber products have obvious price advantages, becoming alternatives for textile enterprises, which puts pressure on domestic cotton prices. Some textile mills have reduced production, and the market confidence is insufficient. From the perspective of orders, most of them are small orders, and the number of orders is lower than that at the beginning of the month, and follow-up orders are generally insufficient.

Future forecast: In general, although the tension between cotton supply and demand has eased and the demand has not been as large as expected, the spot price of cotton is still relatively strong. As the acquisition period of new cotton is approaching, the expectation of rush harvest of seed cotton is still strong, considering the excess capacity of ginning plant, although it has weakened compared with the previous period. From the current price of hand picked cotton, it is roughly maintained at more than 9 yuan/kg, and the relatively high price forms a certain support for the cotton price.

It is believed that before the festival, cotton prices remained high and volatile, and some textile enterprises may still have the need to continue to replenish stocks after the long holiday, and continue to pay attention to the replenishment of textile enterprises. The downstream textile end continued to report that the peak season was not strong, which made the market cautious about the prospects of cotton demand. Later, it waited for the changes in the opening price and market sentiment of the centralized listing of new cotton, as well as the recovery of the demand end in October.