Why is the price of cotton yarn steadily decreasing?

Since the beginning of this year, affected by the new crown pneumonia epidemic and China-US relations, the spot price of the cotton market has fluctuated endlessly, but the cotton yarn market has failed to follow the market. This is undoubtedly a huge coexistence of practical and psychological pressure for textile operators who are still rushing to ensure the operation of the machine, ensure that the enterprise does not collapse, and ensure that the employees eat under the exhaustion.　　According to some 20,000-50,000 spindles spinning mills in Yancheng, Jiangsu, in the changing cotton market, the price of cotton yarn, especially carding, has remained unchanged. In mid-to-late July, the average ex-factory price of 32S carded by local textile companies was around 18,500 yuan/ton, even if there were adjustments, the range was very small. At this price, companies will have limited profits after removing cotton costs and labor costs. The market and sales volume of high-count yarns are also cold. Spinning enterprises of various scales are sticking to the same price sales, and the raw materials and product inventories are suppressed to the minimum.　　 At this stage, the recovery of domestic textile sales and some temporary improvements brought about by the conversion of foreign trade to domestic sales are neither the essence of the market, nor can it continue for a long time. Many small and medium-sized enterprises report that the recent order situation is more difficult than in the first half of the year. Industry analysts believe that the distribution of domestic cakes, foreign trade restrictions and Sino-US diplomacy, economic and trade frictions will be unpredictable in the future. There are many unknowns in the operation of the textile industry, and the current and future fatigue of the textile industry will be reflected and developed.　　 After entering the second half of the year, due to the closure of downstream foreign trade markets and sluggish high-end consumption, the production and operation situation of some large-scale textile enterprises is not ideal. In the mid-to-low-end textile and clothing manufacturing sectors, except for the protective textile products needed for medical and health care, such as surgical gowns, protective clothing, masks, etc., the production and sales are increasing, and the production and sales of yarn products in other industries such as clothing, bedding, toys, etc. Due to downstream obstruction and poor sales, production has been reduced, the operating rate is low, the delivery of goods has slowed, and the sluggish consumption level has made it difficult for upstream production to increase volume, and there is no room for price increase. From a long-term perspective of development, economic development determines social consumption, and market consumption such as textiles and clothing is sluggish. It is a normal market supply and demand relationship that makes cotton prices difficult to sell and cotton yarns are difficult to sell. What we can do is still improve product quality. Go up and bring down production costs, hoping that the epidemic and friction will pass as soon as possible. Article Keywords: 　 Cotton Yarn Price