China Cotton network news: According to the feedback of several cotton spinning enterprises in Anhui, Shandong and other places, with the overall increase in the factory price of cotton yarn since the end of December by 300-400 yuan/ton (since the end of November, the price of conventional comb yarn has increased by nearly 800-1000 yuan/ton, and the price of cotton yarn of 60S and above has mostly increased by 1300-1500 yuan/ton). Destocking of cotton yarn in cotton mills and textile markets continued to accelerate.

Up to now, some large and medium-sized textile enterprises yarn inventory down to 20-30 days, some small yarn factory inventory down to 10 days or so, in addition to the downstream weaving factory/fabric enterprises directly before the Spring Festival, but also with cotton yarn middlemen open stock and textile enterprises initiative peak production, reduce production and other measures.

From the survey, most of the weaving enterprises in Jiangsu and Zhejiang, Guangdong, Fujian and other places plan to put on the “Spring Festival holiday” in late January, start work before February 20, and the holiday is 10-20 days, basically consistent with the last two years, and has not been extended. On the one hand, downstream enterprises such as cloth factories worry about the loss of skilled workers; On the other hand, some orders have been placed since mid-to-late December, which need to be promptly delivered after the holiday.

However, according to the survey of some of the cotton yarn line inventory, return of capital textile enterprises, the current sales of C32S and below the number of cotton yarn, cotton mill is still generally a loss of about 1000 yuan/ton (early January, domestic cotton, cotton yarn spot price difference of 6000 yuan/ton below), why cotton mill also carry the loss of shipment? Industry analysis is mainly restricted by the following three points:

First, near the end of the year, cotton textile enterprises need to pay staff wages/bonuses, spare parts, raw materials, bank loans and other expenses, cash flow demand is larger; Second, after the Spring Festival of cotton, cotton yarn market is not optimistic, only to fall bag for safety. Textile enterprises generally believe that export orders in Europe and the United States, Bangladesh and other export orders and terminal spring and summer orders are only phased good, difficult to last; Third, since 2023/24, domestic cotton yarn consumption demand continues to be sluggish, yarn accumulation rate continues to shock higher, textile enterprises in the transaction difference, loss of wide double pressure “breathing” difficulties, coupled with the middle link to stockpile a large number of cotton yarn price grab, so once there is an investigation/demand pick up, the first choice of textile enterprises must be light warehouse, Give yourself a chance to survive.

Source: China Cotton Information Center