Big Factory Small Factory "Double Day" Printing Yarn Domestic Sales Improved, Resulting In Price Increase

As of August 6, cy c32s pure cotton yarn reported 18515 yuan / ton, down 20 yuan / ton compared with last week. From the perspective of the general environment this week, the cotton textile industry chain seems to be picking up. In the second quarter of 2020, the prosperity index of the textile industry will reach 51.0, returning to the expansion range. Over the same period, the capacity utilization rates of textile and chemical fiber industries reached 70.3% and 77.1%, respectively, up 3.1% and 2.7% compared with the first quarter (China's Manufacturing Purchasing Manager Index PMI was 51.1% in July, up 0.2% from the previous month). As of July, the PMI of manufacturing industry has been operating at more than 50% for five consecutive months). However, according to the investigation of some small factories, it seems that they have come to a completely different conclusion, which can be described as "a double heaven of ice and fire"

As of August 6, the cc3128b cotton index closed at 12362 yuan / ton, up 109 yuan / ton from last week. And cotton yarn prices are still down, making the current theoretical profit and loss of textile enterprises fell to a new low point in nearly a year. And as the most cost-effective reserve cotton can be said to be mixed "wind and water". In one month, 23 trading days, not only 100% of the national cotton reserves were sold, but also the bid price increase was always at a high level. But even so, compared with Xinjiang warehouse single cotton advantage is still alive. At the same time, the state-owned cotton can also be in the warehouse on the geological charge, for the textile enterprise capital turnover to bring convenience. Secondly, although the quality of national storage cotton is quite different from that of Xinjiang warehouse single cotton, it is very suitable for the production of low count yarn in the current market. However, the small and medium-sized enterprises that want to buy more than 100 tons of cotton bales are difficult to support by small and medium-sized enterprises, which only need more than 100 million tons of cotton. In view of this, many textile enterprises choose to cooperate with traders for win-win results. Some traders completely "backdoor" textile mills, "put on the vest" and participate in the reserved cotton auction, and the actual cargo rights are 100% owned by the traders, of course, the textile enterprises will also get a benefit fee of dozens of yuan per ton; other textile enterprises not only provide reserve cotton bidding qualification to traders, but also choose a part of reserved cotton for their own use. On the one hand, it can lock in cotton resources in advance, on the other hand, it can deepen the contact with traders, which can make full use of and give full play to the financial advantages of traders.

On the basis of the continuous weakening of cotton yarn shipment, the inventory of textile enterprises significantly accumulated. As of August 6, China's yarn inventory index rose to 32.7 days, a new high in nearly three years. Due to the single product form, some small enterprises choose to reduce production or even stop production under the premise that the effect of de stocking is not obvious and they can not receive orders from large factories. In some areas, the proportion of cotton mills with less than 20000 spindles is even higher than 40%. In order to survive, some medium-sized enterprises have tried their best to survive. Many textile enterprises choose to "determine production by sales", and how many orders they receive and how many cotton and other raw materials are purchased to minimize the risk of capital occupation and cash flow collapse. And for these small and medium-sized enterprises after the withdrawal of the low-end yarn market, not only there is no "wheel space", but is filled by large factories "tight fit". It is understood that several cotton textile enterprises with more than 100000 spindles in Hebei, Henan and Jiangsu are currently operating at 80% - 85%. Many large enterprises suspend the production of 60s and above cotton yarn, and can "order spinning" according to customers' needs, and directly give up orders with low profit or too small quantity.

As for imported yarn, as of August 6, the spot price of FCY index c32s converted into RMB was 18382 yuan / ton, down 16 yuan / ton compared with last week, and the domestic and foreign prices continued to be inverted. Due to the slow progress of international anti epidemic, the consumption demand of textiles and clothing is still low, and the export orders of China's downstream cloth factories have not improved. At present, the spot price difference of imported cotton yarn is at a low level, and traders may change from profit to loss under the fluctuation of exchange rate, so there is a certain risk in ordering. Among them, due to the increase in demand for combed yarn in the local market, the price difference of c32s between the internal and external price of c32s fell from 400 yuan / ton in early July to 80-100 yuan / ton. This ordering advantage is very small, and it is easy to change to upside down due to the drop of exchange rate or spot price. Secondly, the profit of Indian cotton mill selling to India is more considerable. According to the feedback from the factory, India sells to the domestic price The price is about 2.24-2.27 USD / kg. At the same time, the uncertainty of Sino Indian relations is also one of the concerns of purchasers. For example, the opening inspection of Indian goods and charging additional customs clearance fees have increased the time cost and ordering cost of buyers.