Yarn prices have fallen by more than 500 yuan/ton since April, enterprises are frightened

In recent days, the cotton raw material market has gradually risen, while yarn is going in the opposite direction. According to textile companies in Shandong, Hebei and other places, since early April, most yarns have fallen by more than 500 yuan/ton, and some have reached 700-800 yuan/ton. The details are as follows: 　　 1. Pure cotton yarns generally fell, and enterprises were frightened. On April 13, the quotations of carded yarns C21S, C32S, and C40S from a factory in Binzhou, Shandong were RMB 18,000/ton, RMB 19,000/ton, and RMB 20,100/ton, respectively. Compared with last Monday (6th), the price dropped by 500-600. Yuan / ton. Low-count and low-dispersion yarns fell simultaneously. As of the 13th, the quotation of OEC12S at a factory in Gaoyang, Hebei Province was 13,000 yuan/ton, down 600 yuan/ton compared to April 6. According to the analysis, there are two reasons why pure cotton yarn has fallen so much. First, the price of cotton plummeted in March and April. Recently, low-cost raw materials have been transmitted to textile enterprises. Data shows that after the Spring Festival, cotton prices have fallen by more than 3,000 yuan/ton. For example, the pick-up price of Xinjiang’s “Double 28” hand-picked cotton dropped from around 13,500 yuan/ton to around 10,500 yuan/ton in early April. At present, most textile mills have begun to use the cotton purchased after the Spring Festival, and the cost has dropped significantly. Second, the company is in a state where there is nothing to do. Recently, the foreign epidemic situation has become more serious, a large number of overseas orders have been cancelled, and the number of orders received by enterprises has decreased significantly. According to many business owners, in March and April, business orders were reduced by at least 50%, and individual companies reached 70%-80%. There are few orders and high sales pressure. In order to compete for limited orders, companies are competing to reduce prices to attract orders. This is the main reason for the recent sharp drop in yarn prices.　　2, polyester yarn falls first and then stabilizes. Recently, polyester yarn prices in various places have also fallen off the cliff. As of April 13, the price of pure polyester yarn 32S in a factory in Dongying, Shandong was 9,700 yuan/ton, which was nearly 400 yuan/ton lower than last week. On that day, the price of polyester-cotton yarn 45S in Shandong, Hebei and other places was 15,400 yuan/ton, down by around 500 yuan/ton compared to the previous week. However, according to many manufacturers, polyester yarns are currently in a dilemma. The main reasons: First, there are few orders and high sales pressure, and companies can only reduce prices to attract orders. According to some manufacturers, the backlog of downstream grey fabrics has been very serious recently. On the one hand, grey fabric manufacturers have reduced the pressure; on the other hand, they have reduced the purchase of raw yarns or purchased raw materials on credit. The only option for polyester yarn manufacturers to destock is to reduce prices. The second is the recent rise in the upstream polyester short market and the significant increase in polyester yarn production costs. According to reports, as of April 13, the price of 1.4D*38mm direct-spun polyester staple fiber in Shandong was at 5850-5900 yuan/ton, which was nearly 700 yuan/ton higher than last week. The fundamental reason for the rise in polyester shortfalls is that OPEC and other oil countries reached an agreement to cut production by 10 million barrels per day last week, and international oil prices have risen in response to the wind. The market predicts that the bottom of the international crude oil market may end in the future, which will have a positive impact on the entire chemical fiber market. Therefore, polyester yarns have been in a dilemma between the ups and downs recently. If the polyester staple market continues to rise, polyester yarn companies can only increase their quotations.　　3. The price of rayon yarn has fallen and the inventory has risen, and the enterprise has been embarrassed and overwhelmed. As of April 13, Shandong and Hebei regions had rayon yarn R30S quotations at 13,000 yuan/ton and R40S quotations at 14,000 yuan/ton, down nearly 500 yuan/ton from the previous week. Talking about the decline in the price of rayon yarn, the reason is still that there are few orders and high inventory pressure. On April 13, many textile company bosses stated that the demand for rayon yarn has been significantly weakened recently, and everyone’s inventory has risen by more than 30%. However, the market for viscose staple fiber is mainly stable recently. On that day, the mid-end price of viscose staple fiber was around 9,100 yuan/ton, and enterprises were cautious in taking the goods.　　 In summary, affected by the international epidemic, domestic and foreign trade have collapsed across the board, overseas orders have been hit, and companies have become the only option to reduce prices. It is expected that the yarn will keep running at a low level in the near future. Article Keywords: 　 Yarn Price