On October 12, the price of domestic cotton yarn fell significantly, and the market transaction was relatively cold.
In Binzhou, Shandong Province, the price of 32S for ring spinning, common carding and high configuration is 24300 yuan/ton (ex factory price, tax included), and the price of 40S is 25300 yuan/ton (as above). Compared with this Monday (10th), the price is 200 yuan/ton. According to the feedback of enterprises in Dongying, Liaocheng and other places, the price of cotton yarn is temporarily stable. However, in the actual transaction process, downstream enterprises generally require the cotton mill to give 200 yuan/ton of profit. In order to keep the old customers from losing, more and more enterprises are loosing their price mentality.
The yarn prices in Zhengzhou, Xinxiang and other places in Henan Province dropped significantly. On the 12th, Zhengzhou market reported that the price of conventional yarn generally fell by 300-400 yuan/ton. For example, the prices of C21S, C26S and C32S of high configuration ring spinning are 22500 yuan/ton (delivery price, tax included, the same below), 23000 yuan/ton and 23600 yuan/ton respectively, down 400 yuan/ton from Monday (10th). The price of high matching compact spinning cotton yarn was also not spared. For example, the prices of high configuration compact spinning C21S and C32S in Xinxiang are 23200 yuan/ton and 24200 yuan/ton respectively, down 300 yuan/ton from Monday (10th).
According to the market analysis, there are three main reasons for the decline in yarn prices: first, the decline in market raw material prices has dragged down yarn. As of the 11th, crude oil prices had fallen for two consecutive trading days. Will the fall of crude oil price cause the downstream chemical fiber materials to follow? Facts have proved that the chemical fiber raw materials that have risen to a higher price have been moved by the wind. On the 12th, the quotation of polyester staple fiber in the Yellow River basin was 8000 yuan/ton, down about 50 yuan/ton compared with yesterday. In addition, the recent price of real estate cotton also showed a slight decline.
Second, downstream demand is still relatively weak. Since this month, the number of small and medium-sized weaving enterprises in Shandong, Henan and Guangdong has increased, and the start-up rate of some denim, towel and low-end bedding enterprises has dropped to about 50%. Therefore, the sales of yarns below 32 have slowed down significantly.
Third, the raw material inventory of the cotton mill rose rapidly, and the pressure of destocking was great. According to the feedback of yarn mills around the country, the raw material inventory of manufacturers with more than 50000 spindles has exceeded 30 days, and some have reached more than 40 days. Especially on the 7th day of the National Day, most of the cotton mills were slow in shipping, which led to the challenge of working capital. A person in charge of a cotton mill in Henan said that part of the funds would be returned to pay workers’ wages.
The key problem now is that market players are not confident in the future market. Influenced by the current complex situations at home and abroad, such as inflation, RMB devaluation and Russia Ukraine confrontation, enterprises are basically afraid to gamble on the market with inventory. Under the influence of liquidity psychology, it is also reasonable for yarn prices to decline.
Post time: Oct-31-2022