Cotton yarn weekly | price decline slowed gradually repair - profit
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In late April, the epidemic is still in the stage of development abroad, the yarn market overall weak city still, pure cotton yarn the overall price is still a downward trend, but the drop was clearly slowed in March.
As of April 23, the domestic C32S average closed at 19130 yuan/ton, rose last week fell 88 yuan/ton, the decline has slowed.
Contrast the whole march fell nearly one thousand yuan, since April domestic C32S average only fell 392 yuan/ton.
Cotton yarn price is slowing decline in part because cotton prices rebounded in April.
But boot aspects, there are some FangQi have cut production due to rising inventories of action, are not common, but the phenomenon of reducing production FangQi comprehensive inventories declined.
As of April 23, China yarn boot load index of 50.
4%, down from last week 1.
While FangQi cotton yarn inventory rose to about 29 days.
For basic foreign trade order has been cancelled, and many foreign trade enterprises to sale in domestic market, domestic orders appears unusually hot.
FangQi, enterprises have said to rob order, pay big price cuts, even so, most FangQi said, it is hard to get the orders, raw material procurement is also buy according to the order, did not dare to stock up.
Some raw material inventory loss serious, larger companies say mills, downstream co mainly is clean up the inventory goods, shipment mentality is relatively strong, no new orders, downstream of the mill can't purchasing raw material, human, plant, raw material costs, enterprises eager to delivery drained, repeatedly on sale, the situation of the market price war intensified, causing a vicious cycle of the market.
Some textile mills, simply limit production, a shift to relieve or holiday.
From spinning profits, although the theory of pure cotton yarn and raw materials from sight or 20 to calculate are in a good grade, but many FangQi early high inventories, far less than actual profit, if in accordance with the raw material price, prior to the cotton plunged FangQi mostly unprofitable, even there are a lot of losses.
And pure cotton yarn price decline is slowing after April, combined with previous high cotton gradually digestion, FangQi actual profit levels will be gradually restored.
Import yarn, affected by the epidemic situation abroad at present, India, Vietnam, Pakistan and other countries are affected by the large production, early & other;
The sealing & throughout;
Measures such as once the lockout southeast Asia FangQi recently in recovering, though far away from the norm also.
As of April 23, FCY Index C32S fold the renminbi spot price closed at 19884 yuan/ton, compared to the same period last week and fell 54 yuan/ton.
This week, Pakistan cotton yarn prices fell sharply, commercial activity began to slowly recovering, but after a nationwide ban on yarn demand is still not recover, sale in domestic market and export prices remain under pressure.
And India, as a result of cotton seeding time in 5 - mostly
In July, but for now, India's new crown outbreak think in mid-may, or even complete control in mid-june and gradually disappear hope is almost zero, impact on cotton planting inevitable.
Combined with Thailand, Vietnam and other places because of a sharp drop in output events such as drought and locust plague, lead to rising unemployment and domestic outbreak, domestic demand for food has been rising, more and more Indian farmers choose & other;
Reduced cotton increased food & throughout;
, this will in the future for a long period of cotton, cotton yarn exports hit.
To sum up, although the market is not very desirable, but with the outbreak, the domestic economy is slowly recovery, most companies still choose to insist, don't want to give up easily.
And southeast Asian countries continued low capacity utilization, at the same time, the international trend of Europe and the United States will gradually release in May, China order or get better.
Specific, of course, still depends on foreign control of epidemic, as textile, total want to better prepare for the worst and hope for the best.