Cotton Spinning Enterprises Continue To Leave Yarn Prices Stabilized

At the end of early January, textile mills in all parts of the country went on holiday, and many manufacturers were facing the end of stocking.

It is understood that Shandong, Hebei and other places cotton prices stabilized, sales slack. Although the downstream traders of the pure cotton yarn have higher enthusiasm for taking goods, they are more bullish on the market outlook, but as the textile enterprises enter the holiday mode one after another, the market purchase and sale are gradually light. In January 9th, the price of 20300 cotton / pure cotton yarn with C32S in Shandong was quoted as RMB $21500 / ton (including short distance transportation and tax). The general quality of the combed C40S was about 21500 yuan / ton, and the quality of the compact spinning C32S was better. The price of the product was stable.

Cotton yarn prices have risen by an average of 300-600 yuan / ton since late December, but due to the simultaneous rise of upstream cotton, the actual profit margins of textile mills have not been significantly expanded. Since the end of December, Xinjiang cotton's basic bid and a quotation have risen by 500-600 yuan / ton, covering up the yarns.

Overall, yarn costs will also rise as cotton prices rise. If the yarn rises later than expected, the company will bear the risk of loss. Therefore, most of them dare not buy raw materials at high price, but rely mainly on wait-and-see. In addition, as of this week, many of the downstream fabric manufacturers have already had a holiday, and the yarn purchase has been gradually discussed. Many mills believe that enterprises are facing higher upstream costs and lower consumption pressure. At this time, the most secure solution is static braking.