'Golden Nine Silver Ten' is coming soon, can cotton yarn 'ride the wind and waves'

In recent years, the trend of trade counter-globalization has become more and more obvious, and the 2020 epidemic will reduce domestic and foreign consumption, and China's textile and clothing products, which are highly dependent on exports, have been hurt. The main contradiction in the current textile market is insufficient demand. The country has also proposed a new development pattern of 'dual cycles　　 As of mid-August, because the downstream market is in the traditional off-season, the production and sales of the downstream gauze market have not improved. Spinning companies’ operating rates, profits, and orders have declined to varying degrees, and textile companies’ cotton yarn inventory continues to increase. Then, the traditional peak season of 'Golden Nine and Silver Ten' is coming soon, can downstream demand increase as scheduled? 'Shandong cotton spinning enterprises have shown a continuous downward trend in the number of order scheduling days, and market orders are mostly loose orders and small orders. Recently, cotton yarn orders are still not good. Enterprises are actively receiving orders, but subsequent orders have not yet increased. Some companies have reported that foreign trade orders are slowly increasing. However, the sustainability of orders is not good, and the capacity is insufficient. In addition, there are still uncertainties in Sino-US trade relations, and companies are cautious in receiving orders. The later market focuses on the return of foreign trade orders and the recovery of domestic demand, as well as the dynamics of Sino-US trade relations.' Said Chen Caijuan, a cotton yarn researcher at Creative Information.　　 It is understood that the overall start-up load of textile enterprises has shown a downward trend since June. At present, the start-up load of cotton spinning enterprises in Shandong is mostly around 55%, and the start-up load of medium and large textile enterprises is mostly 50%-70%.　　 The reporter found that since June entered the off-season, cotton yarn inventories in Shandong cotton spinning enterprises have continued to increase, and the data as of last week has increased by 27 days over the same period last year. With the deepening of the off-season in the domestic market, poor domestic orders, slow transactions in the domestic cotton yarn market, cotton spinning enterprises continue to accumulate cotton yarn.　　In terms of raw materials, due to tight funds and insufficient foreign trade orders, some large textile companies are cautious in purchasing raw materials, and still adhere to the principle of as-used and retrieving. Some companies purchase domestically stored cotton and imported cotton to reduce costs. After February, the cotton inventory of Shandong cotton spinning enterprises continued to decline. As of last week, the raw material cotton inventory of cotton spinning enterprises was 27 days, which was 7 days lower than the same period last year.　　 'Raw material prices continue to rise, and textile companies lose more money.' Chen Caijuan said that since April, the price of raw cotton has risen oscillatingly, while the price trend of cotton yarn has continued to weaken, and the profits of cotton spinning enterprises have been continuously compressed. At present, the theoretical average profit of pure cotton carded ring spinning high-distribution 32-count cotton yarn is -1486.39 yuan/ton.　　 In fact, the most important factor affecting demand at present is the epidemic and Sino-US relations. Global epidemic control has not been as smooth as imagined. Failure to effectively control the global epidemic will lengthen the recovery of cotton consumption. Under the influence of Sino-US trade friction, the pace of industrial transfer to Southeast Asia has been accelerated. If Sino-US relations deteriorate, production capacity will continue to shift, leading to a decline in domestic cotton consumption.　　 It is worth noting that the central bank has recently increased its net investment again. In the past six months, the world's major economies have increased their currency in different ways, and inflationary pressures have increased in the later period. 'From a fundamental point of view, new flowers will be launched around September, the price of seed cotton may open lower and higher, and there will be more speculation due to factors such as the superimposed U.S. cotton hurricane. The textile demand will slowly improve. Expectations remain unchanged. Rebound at the end. Pay close attention to the progress of the domestic and international epidemic situation and the progress of Sino-US trade relations.' Chen Caijuan said. Article Keywords: 　Cotton Yarn