The price of cotton yarn crazy cotton factory dilemma

Driven by the increase in cotton prices, the prices of cotton yarns were substantially followed in early July, and conventional yarns rose by 500-1,000 yuan/ton. The downstream weaving mills have received varying degrees of strength, with positive bullishness and rising prices. This is the game between psychologically bullish cotton and weak basic demand.

Cotton yarn prices crazy

In early July, the cotton yarn market experienced a rare madness, one price per day. Some factories in Hebei said that the four-day price increases by textile companies three times were 300, 300, and 500 yuan/ton, respectively; some plants in Anhui said that the transaction price of C32S rose by about 600 yuan/ton; some weaving factories in Chongqing indicated that the purchase price of C40S was from 21,000. Rose to 21,600 yuan / ton. Although the current high price of pure cotton yarn is difficult to deal with, but the high price is not loose, C40S reported higher 22500 yuan / ton, C32S higher reported 22,000 yuan / ton.

Cotton cloth follows but hesitates

The price of cotton grey fabrics has already been abolished in late June and the low prices tend to be firm. After the rise of pure cotton yarns, some weaving factories have actively followed up and prices have been adjusted. The prices of C40S varieties are relatively high, and the actual increase is concentrated at 0.1-0.2 yuan/m. Home textile fabrics have seen a slight increase in yarn consumption. Regional prices in Shandong are relatively high. In addition, price hikes have occurred in factories with a certain scale, which is close to the situation of large-scale cotton yarn manufacturers. However, in Hubei, Chongqing, and Shaanxi, there are also a large number of weaving mills that want to go up and down. The main reasons for this are the lack of under-confirmation of orders, and the fact that inventory is a priority. Corporate fundamentals are under pressure. Although they want to rise, they do not dare to blindly adjust prices.

In the current market, the trend of cotton is still strong. Some of the more active companies think that cotton can rise to 16,000 yuan/ton or even 17,000-18,000 yuan/ton. However, there are already factories that refuse to increase prices, and the actual loss of grey fabric is 0.1 yuan/meter. The discontinued production and the disagreement increased. Judging from the current situation, the raw materials of small and medium-sized factories can only last about ten days. Therefore, weaving mills finally choose to cut production or stop production, or purchase high-priced yarns. This game of high-priced raw materials and weak fundamentals will slowly produce results in late July. The mentality of rising prices of cotton fabrics is still in force. Whether we can follow up smoothly will depend on whether the cotton yarn cotton will support living after the cuts in production and production have stopped.

Due to the cotton price hikes in the past three months, industry confidence has a certain basis. The price of pure cotton yarn has risen for more than ten days. Some weaving factories have followed up, and companies that have not raised their prices have also raised their prices. However, they have been weighed down by the reality. Although weaving factories do not want cotton to fall, we cannot afford high-priced cotton yarns in production. In the next stage, the entire cotton fabric weaving factory will soon face the situation of not raising the price and it will take a holiday. Whether the grey cloth can achieve a full rise will need to wait and see after the game. result.