Insufficient Follow-Up Of Cotton Yarn Orders

Recently, affected by the repeated epidemic situation abroad, the fluctuation of raw material prices and the insufficient follow-up of follow-up orders, the price of cotton yarn dropped slightly by 500 yuan / ton, and the price of some varieties with higher early growth rate fell by 1000-1500 yuan / ton. Affected by the epidemic situation, foreign trade orders decreased significantly. After the "double 11" of domestic trade, orders were not followed up enough. Large cotton yarn orders were few, and market transactions were mainly in bulk and small orders. At present, most cotton yarn orders continue to the end of November, and some enterprises continue to the middle and late December. After that, the orders are not good. It is expected that with the speed of cotton yarn accumulation in the future, the trend of yarn price callback may accelerate.

Slow inventory accumulate

Affected by the repeated epidemic situation and the rapid rise of raw material costs in the early stage, most foreign trade orders were waiting-and-see, and various brands were delayed to sign up for orders, and the inquiry of new orders was very few, and some orders of varieties flowed out of Southeast Asian countries. In terms of domestic trade orders, with the end of the "double 11" orders, the replenishment orders after the "double 11" have not been followed up, the follow-up orders are not ideal, and the traders' wait-and-see mood is aggravated. Last week, Shandong cotton textile orders fell 3 days. In the later stage, the epidemic situation is still repeated. Under high operating load, cotton yarn inventory has begun to accumulate slowly. The follow-up of new orders is insufficient. The sustainability of orders in December is not good. The scheduling time of Shandong cotton textile enterprises may continue to decline.

Compared with the same period last year, Shandong cotton ring yarn inventory increased by 13 days. After the rapid rise in the early stage, cotton yarn transactions continued to fall this week. Enterprises still focused on processing orders in the early stage, but the new orders were insufficient. The cotton yarn price dropped by 500-1000 yuan / ton, which led to a strong wait-and-see atmosphere in the market. Cotton yarn inventory continues to accumulate, but remains low.

In terms of raw materials, with the fluctuation and fall of cotton price, and the multi order arrangement of enterprises, some cotton spinning enterprises purchase cotton at the low price near 14000 yuan / ton according to the order to the end of November. The state-owned storage cotton, warehouse receipt cotton and imported cotton are highly concerned. Some enterprises also say that Australian cotton is banned, Xinjiang cotton price is high, and the current order processing profit is meager. This week, Shandong cotton spinning enterprises cotton inventory available 38 days, 3 days more than last week, 6 days more than the same period last year.

The starting load decreased slightly

This week, textile enterprises started a small decline in load, of which Shandong cotton textile enterprises start load is more than 70%, medium and large textile enterprises start load is more than 80%. Although the recent vibration of Zheng cotton has dropped, and the new orders in the lower reaches have dropped significantly, the orders of cotton spinning enterprises have been arranged to the end of November, and the orders of some home textiles and other varieties can be arranged to the end of the year, and the cotton textile enterprises continue to rush for orders with high load. In the later stage, the follow-up of new orders is insufficient, and cotton yarn inventory has begun to accumulate slowly. If the sustainability of orders in December is not good, the operating load of cotton spinning enterprises may continue to decline in the later period.

In view of the short-term cotton price rebound of more than RMB 15000 / set, and the cotton price of Zheng Huabao will rebound in the short-term range of more than RMB 15000 / set, and the cotton price of Zheng Huabao will rebound in the short-term. Lack of raw material support, coupled with poor follow-up orders, cotton yarn prices will be weak downward. It is suggested that textile enterprises should ship goods at the right price, strengthen customer communication, and reasonably use futures instruments to hedge risks. In the short term, we should also pay attention to the domestic and foreign epidemic situation, vaccine progress, and news trends of Sino US relations.