Yarn mills lower product grades, fabric mill inventories increase slightly

Recently, several small and medium-sized weaving companies in Guangdong, Shandong and Jiangsu have reported that since mid-June, foreign trade companies, clothing companies, intermediaries, etc. have sent fewer orders, and grey cloth stocks have increased slightly (occupying a certain amount of working capital). Concerned about the second wave of the recent outbreak of the new crown epidemic, companies plan to take advantage of the Dragon Boat Festival holiday for a week. On the one hand, companies have purposely reduced production (domestic sales in autumn and winter have come to an end, and orders for spring 2020 have not yet fallen) to reduce the risk of overstocking of conventional grey fabrics; on the other hand, the prices of cotton and cotton yarn have continued to rise recently, and the prices of end products such as fabrics and clothing have been fully accepted. The pressure caused the weaving factories and middlemen to make too thin profits or even lose money.　　According to the survey of midstream cotton spinning enterprise customers, the company's operating rate has recently been lowered compared with May. The demand for OE yarn and 10-16S ring spinning by weaving mills and clothing companies has decreased significantly. In addition, the demand for carded and combed yarns of 50S and above continues to decline. Some large and medium-sized yarn mills in Shandong, Jiangsu, Zhejiang and other places have suspended production of 60S and above (mainly digesting inventory, and can arrange for large orders according to requirements) and shift to focus on production C21S, 26S, 32S, 40S and JC40S. A spinning mill in Henan stated that the company’s 60S carded and combed yarns have been discontinued. Considering that they will continue to be sold domestically in the second half of 2020, the spring of 2021 will also mainly require conventional 21S-40S. Therefore, to ensure production, focus on surprise production. Carded cotton yarn can be put into storage if the order is insufficient.　　 It is understood that the phenomenon of 'downgrade' of domestic cotton yarn and grey cloth is more common. First, the yarn count is dominated by 26S, 32S, and 40S. In the past few years, some companies that only spin 40S and above have also begun to lower their product grades; second, the grade of cotton matching has also declined (real estate cotton purchases are relatively active), Xinjiang's high-quality 'double 29, double 30' lint is mostly priceless; The third is to abandon low-profit export orders, step up the domestic sales layout, actively reduce product grades, and ensure that the variety of products meets customer needs. Article Keywords: 　 Yarn Factory Cloth Factory