Henan: Textile enterprises return to normal production, cotton prices rise under pressure

On June 8, the reporter came to Henan to conduct research on the raw material procurement, order sales, and inventory of cotton spinning enterprises.　　According to the Henan Textile Association, the current cotton spinning industry in Henan Province presents a 'large-scale spinning and small-scale clothing' structure, with the textile industry accounting for 65%, clothing accounting for 20%, textile machinery and chemical fiber each accounting for 5%. After the Spring Festival, the resumption of work of cotton spinning enterprises in Henan Province is mainly divided into three stages. In the early stage of the resumption of work, the demand for cotton yarn in Fujian, Jiangsu and Zhejiang was relatively large, and the orders from enterprises increased. In the second stage, with the outbreak of the foreign epidemic, a large number of foreign trade orders were cancelled, and the sales of textile enterprises were shifted from export to domestic sales. This caused pressure on domestic yarn production and some enterprises stopped production. Since the local area is mainly export yarn, there is a lag period, so the cancellation of foreign clothing orders has little effect on yarn sales. Up to now, textile enterprises in Henan Province have gradually returned to normal. In the future, it is necessary to increase expansion efforts in domestic sales to ensure the normal operation of yarn production. In view of the current low cotton price compared to previous years and the cautious procurement of raw materials by textile enterprises, relevant cotton people believe that the current rise in cotton prices is mainly due to its low absolute price and price restoration. However, due to downstream consumption constraints, cotton prices do not exist. Continued to rise sharply, the short-term cotton price may still have the risk of shocks and corrections. Article Keywords: 　Henan Cotton Spinning Yarn Cotton Price Investigation