The yarn market has improved, but it is still far from the 'peak season'

Ended the 'Golden September' which was not very 'goldGenerally speaking, the yarn market in September has disappointed the expectations of the industry. As of October 10, the average domestic C32S price closed at 20,452 yuan/ton, almost the same as last week. This year’s market’s 'continuous decline' has hurt textile companies. As can be seen from the above chart, downstream demand has improved since September. Both cotton yarn and grey cloth operating rates have recovered, and grey cloth stocks have 'finally' recovered. The highest over the years fell to the same period last year. The inventory of finished products in most textile enterprises has also fallen to a certain extent, but it is still high compared to previous years. At present, textile enterprises maintain the strategy of buying and using cotton, and the basic inventory is about one month. In terms of varieties, pure cotton yarn companies have suffered the most. Blended yarn and specialty yarn companies have a relatively good life. Many pure cotton companies have begun to increase the application of non-cotton fibers and diversify their varieties to better resist market risks. Affected by seasonality, the medium and high count yarns, which had been slow to sell in the past few months, have recently recovered more obviously, and the high-end 40 combed yarns are still in short supply.　　 According to the National Day holiday survey, about 68.6% of companies chose a holiday for the National Day, but more than 30% of companies did not have a holiday. About 42.88% of the companies on holiday have between 1-3 days. Most companies have the same number of holiday days as last year, but nearly one-third of the companies also said that the number of holiday days has increased compared with the past. Some textile companies did not have it last year. This is the first time this year. It can be seen that due to the deserted market this year, textile companies have fewer orders, especially when close to the National Day holiday, market transactions are almost stagnant, so more companies choose to take a holiday. However, the overall holiday time is relatively short. Because of the wear and tear of equipment and the loss of personnel, textile companies dare not take the holiday for too long.　　 As of October 10, the FCY Index C32S index closed at 21,190 yuan/ton, the same as last week. The price difference between internal and external yarns is also relatively close. The inventory of imported cotton yarn declined throughout September. Although the overall supply of cotton yarn in the cotton yarn market exceeded demand in September, and cotton yarn prices were mainly weak, the shipments of traders improved significantly from the previous month. Customs data shows that from January to August 2019, the import volume of pure cotton yarn was 1,256,500 tons, a year-on-year decrease of 6.55%, and the import volume decreased by about 90,000 tons year-on-year, but the data did not take into account the fact that some Pakistani cotton yarns did not enter the customs data. . In terms of exchange rate, after the great devaluation of the RMB exchange rate in August, the exchange rate in September stabilized or even appreciated slightly. After the holiday, a new round of Sino-US consultations is imminent. Although the US Department of Commerce previously blacklisted some Chinese companies, which once made the prospects of negotiations between the two countries more worrying, today, according to relevant sources, there are negotiations between the two countries. The positive news came that the RMB exchange rate rose sharply by about 700 points, approaching 1%, the largest since August 13.　　 In short, many people's expectations for the peak season have come to an end. Although the performance of the market has improved slightly recently, it can only be described as subpar and cannot be compared with the boom in previous years. In the context of international political and economic instability and the failure of the Sino-US trade war to improve, companies still receive few orders, and prices are difficult to rise. At present, the overall profit level of textile enterprises is relatively low, mainly to protect customers and workers. Although the exchange rate has slightly reduced the cost of foreign exchange settlement for imported yarn, since the current cotton yarn market is still in a situation of oversupply, it remains to be questioned whether it can take a wave in the near future. Article Keywords: 　 Yarn Market