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[Why do yarn prices continue to find the bottom? Textile sales are slowly climbing.]
Release date:[2020/7/20] Read a total of[147]time

Although demand is slowly recovering, many textile companies have recently reported that the prices of cotton yarn, polyester yarn and rayon yarn are still dominated by downturns. Especially in July, the market is even more worrying. The main manifestations are as follows:

   1. The pure cotton yarn has fallen to the bottom and there is still no sign of rebound. On the 14th, a person in charge of a spinning mill in Zhengzhou, Henan Province introduced that the prices of carded yarn 21S and 32S were RMB 17,500/ton and RMB 18,500/ton respectively. Since the beginning of June, the quotations of conventional yarns have fallen by 500-700 yuan/ton. After July, they continued to fall slowly and boiled frogs in warm water. I don't know when this situation will end. Combed yarn also shows a downward trend. Take the combed 40S as an example: on the 14th, a factory in Binzhou, Shandong Province quoted an ex-factory price of 21,900 yuan/ton, which was a cumulative drop of more than 2,100 yuan/ton from the high of 24,000 yuan/ton in March this year. Manufacturers said that since the beginning of this year, combed yarns have fallen off the cliff first, plummeting nearly 2,000 yuan/ton from mid-March to early May, and since mid-May, the decline has continued.

   2. Polyester yarn has been declining recently due to the influence of raw materials. According to feedback from some small and medium-sized yarn mills in Henan, Hebei and other places, as of mid-July, the mainstream price of pure polyester yarn T32S in the market was 9,600 yuan/ton, and the higher price was also below 10,000 yuan/ton; the mainstream price of T45S was 11,000 yuan/ton Nearby, the recent market is also dominated by declines. From the trend point of view, pure polyester yarn has been experiencing twists and turns since May. Take T32S as an example. From May to July, it rose first and then fell. The high point was around 10,000 yuan/ton, and the recent price was low.

   How to trend in the later period, the market has a high degree of attention, but everyone's confidence is generally insufficient. According to an industry insider, in 2020, pure polyester yarn has fallen by more than 2,000 yuan/ton, and everyone is eager to return to the level of the beginning of the year. Renmian yarn continued to dive down to find support. According to market feedback from various regions, since July, rayon yarn has been oscillating downward. As of July 14th, the price of R30S from a factory in Dongying, Shandong was 12,000 yuan/ton, which was 100 yuan/ton lower than last Friday (10th), and the price dropped by 2,300 yuan/ton compared with the beginning of March this year. Why does the yarn continue to bottom out recently? According to analysis, the main reasons are:

   First, the United States, India, Italy, Spain and other countries "re-block", making foreign trade orders even more difficult. Affected by the epidemic, many states in the United States have suspended their economic restart plans, Uttar Pradesh in India announced a re-blockade, Spain has returned to the state of lockdown, and Italy has extended the state of emergency... In addition, starting from July 9th, the United States will resume levying some exclusion lists 25% tariff. Therefore, the trade orders of domestic enterprises are even more terrible. They have no choice but to export to domestic sales and have to exchange sales at low prices.

   Second, the raw material market has always been difficult to restart, which objectively drags down yarn。 According to traders and distributors in various places, as of mid-July, the quotation of the inland double 29" Xinjiang machine-picked cotton is 12,500 yuan/ton (pickup, official decision, with ticket), and the quotation of "Double 28" is around 12,300 yuan/ton。 Compared with the previous week, the center of gravity dropped by around 100 yuan/ton。 As of the 14th, the mainstream price of 1。4D*38mm direct-spun polyester staple fiber in Shandong, Hebei and other places was 5,400 yuan/ton, down 100 yuan/ton from the previous week。 Tons, compared with the beginning of July, fell by 500 yuan/ton。 At present, the mainstream price of viscose staple fiber is 8600 yuan/ton, which is also in a downward channel。 Therefore, the raw material market is difficult to open, which objectively drags down the yarn market。

   Third, market pessimism spreads, and various entities dare not enter the market easily. In 2020, the global epidemic situation has not yet been controlled in some countries; international crude oil prices have plummeted, and there has been no significant improvement so far. The entire international situation is turbulent and unstable, and the "cash is king" mentality of various entities has brought numerous obstacles to economic recovery.

   To sum up, the process of yarn bottoming may continue, and the main players in the market should exercise caution and prepare for a major reshuffle of the industry.

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