According to feedback from some textile and garment enterprises and trading companies in Guangdong, Jiangsu and Zhejiang, etc., as Zheng cotton and Zheng cotton yarn were strongly closed at the daily limit on October 8, the basis quotation and fixed price of domestic cotton spot prices skyrocketed, and some cotton spinning mills Cotton yarn quotations have been suspended one after another. Cotton yarn traders in coastal areas no longer offer external quotations. The entire cotton yarn market is reluctant to sell, and the wait-and-see sentiment is rising rapidly.
A textile import and export company in Shanghai said: “Since October 5, cotton yarn has been almost unavailable overnight. I called the yarn mills and traders I have cooperated with for many years to inquire. , all reported that sales were temporarily suspended without quotations, and cotton yarn transactions in Shaoxing, Nantong, Changzhou and other light textile markets were sparse.”
As for the reasons why cotton spinning mills have closed sales and are waiting to see their stocks, most of the industry has summarized the following three points: First, Zheng Cotton and ICE have risen in turn, and cotton spinning mills have adjusted the pace of cotton yarn quotations. It lags behind significantly and will take time to repair. If we keep up with the increase in cotton futures quotations, it is likely to lead to the loss of a large number of customers. Secondly, the power curtailment measures sweeping across Jiangsu, Zhejiang, Henan, Shandong and other provinces have affected the production capacity of cotton spinning mills to varying degrees. The supply capacity of cotton yarn has declined. Most yarn mills are focusing on completing early orders and are somewhat unable to accept new orders for medium and long-term projects. Finally, due to the sharp increase in cotton futures, the profits of a certain proportion of small and medium-sized yarn mills have narrowed significantly compared with September, and even price inversions have occurred. , cotton spinning mills are quilt covers, so they stock up yarn for sale, waiting for gray cloth, fabrics, clothing and other terminals to be digested. </p
