At the recent Imported Yarn Forum meeting, Huarui Information Product Manager He Xiaosi analyzed the changes in production and sales of gray fabrics and import trends. The main contents include the following parts.
1. Analysis of changes in production and sales of gray fabric market. Sales in the gray fabric market have been sluggish this year, and prices have gradually dropped. In order to control inventory and ensure capital turnover, companies have shipped goods at low prices, maintained capital, and even operated at a loss. Affected by the policy of releasing and releasing reserves, domestic cotton prices are distorted and fail to fully reflect the relationship between supply and demand. Due to non-cottonization and the difficulty in releasing demand, downstream cost support has weakened, and companies have continued to focus on volume, making it difficult to make profits. The use of medium and low-count imported yarns to produce gray fabrics and the direct import of gray fabrics have impacted the domestic market and greatly changed the market competition pattern.
2. Import status and regional distribution. At present, exports are slowing down rapidly, but imports are growing slightly, indicating that the external demand market is still relatively weak and international competitiveness has declined. Under the guidance of policies, the inversion of domestic and foreign price differences is the main reason for the growth of imports. Domestic enterprises are under great pressure to produce conventional varieties, and the production of medium and low-end varieties has become more difficult. Imports are concentrated geographically. In the cotton gray fabric market, Bajie dominates. In the polyester-cotton gray fabric market, Indonesia is the only one. The domestic market share is eroded, but the single region limits the outbreak of import volume.
3. Influencing factors and development trends of the market outlook. It is difficult to reverse the trend this year, and it will be more of a process of cotton prices returning and gauze prices bottoming out. The main issues of concern include: 1. The “barrier lake” problem of state-owned cotton reserves; 2. The weakening of export support and the difficulty in resolving the contradiction between supply and demand; 3. The problems of high policy and cost pressure and tight funds.
Finally, he concluded that: 1. The cumulative decline in gray fabric prices has been large, but it has not yet exited the downward channel. At present, companies mainly maintain low prices and focus on volume, with small profit margins; 2. The market reform process continues to accelerate, and the price difference between domestic and foreign cotton has narrowed, and some The transferred orders are expected to return to the country; 3. The import channel is single (pay attention to whether the tariff on imported Indian gray fabrics can be cancelled) and the price difference between domestic and foreign prices tends to return, and the import market has reached an inflection point.
