When it comes to environmental protection, the textile industry is flooded with news about the shutdown of printing and dyeing, the shutdown of water spraying, and the shutdown of small-scale textile enterprises. These are all negative news for demand. But in August, a different scene appeared in the cotton spinning market.
The printing and dyeing industry, which has the greatest impact on environmental protection, has limited production or even shut down. However, starting in early August, the prices of disperse dyes and reactive dyes began to increase.
In mid-to-early August, the operating rate of the viscose short-term industry only dropped by 5 percentage points, but then the market amplified news about viscose production restrictions and shutdowns, which drove transactions. According to statistics, since the end of July, the operating rate of the viscose staple fiber industry has dropped by only 9 percentage points.
In late August, due to the “low, small and scattered” governance in Xiaoshan area, local recycling companies were shut down, which increased the consumption expectations of large chemical fibers, and polyester and short-term companies took advantage of the situation to rise together. According to statistics, among the eight recycling companies in Zhejiang that have been shut down, only two are General Fiber.
Environmental protection gimmicks stimulate demand whether it is released in advance or it is hype. Price increases fueled by short-lived news, while shocking, can easily dissipate.
Xinjiang cotton: On August 23, cotton farmers in the Yangtze River Basin cotton area began to pick and sell cotton, and individual ginning companies have also opened scales to purchase. According to on-site feedback on the purchase situation, the opening prices in the mainland this year are lower than last year. According to Xinjiang office personnel, the price of cotton in Xinjiang this year is likely to be around 6.5 yuan/kg, which will also be lower than the same period last year.
Yarn: The sales of pure cotton yarn are flat, with only small orders in batches being sold, and there are discounts in actual negotiations. Inquiries for mainstream conventional yarns have slightly increased, and sales of high-quality yarns are not smooth. The price of pure polyester yarn is relatively stable, and the overall trading volume is not large. The price of rayon yarn is under adjustment, and the sales volume of R10S is acceptable. The overall transaction volume of polyester-cotton yarn was low, and the price fell slightly in some areas. The price of polyester and viscose yarn was basically stable, and the trading volume of individual varieties increased slightly. At present, the inventories of yarn mills have been gradually increasing, mostly around 25-30 days. The operating rate has been slightly reduced in some places, and production may change depending on the sales of different specifications. The overall follow-up of later orders is not good, and manufacturers have insufficient confidence in the market outlook. .
Gray fabrics: The market has improved slightly recently, and the early lofting products have responded. With the fluctuation of cotton prices, the activity of the chemical fiber market has been promoted. Differentiated varieties, knitting, and the chemical fiber market have continued to grow. Although the pressure on environmental protection has increased, the prices of dyes and chemical materials have increased. With the increase in prices, the processing fees of various dyeing factories have been slightly increased, and business has improved.
The number of orders in the Yancheng market is gradually increasing, but no one seems to be excited. The scarcity of combed noil has caused the price of air-spun cotton yarn to rise all the way, and the cost of gray fabrics has also increased. Strict environmental protection regulations have also delayed delivery times. . If you are not careful with the orders in hand, you will lose money and earn money. The spring for textile people has not yet arrived.
The obvious rise in viscose staple fiber and polyester staple fiber has lasted for less than 5 days, and yarn companies have also been relatively slow to follow up. And with the end of phased stocking, the market returned to the demand situation, but found that the price and demand for gray fabrics still have not improved significantly. The market is very subtle and naturally presents a state that no one can act rashly. Everyone carefully protects the current price and market mentality.
The quietness of the yarn mills is mainly due to the feeling that the downstream acceptance of yarn prices seems to have reached a critical state. If the yarn prices continue to rise at this time, not only will it not be able to stimulate demand, but it will promote the rise of raw materials and increase its own cost pressure.
The quietness of chemical fiber factories may also be attributed to the fact that polyester and rayon yarns have been struggling to follow up too quickly due to the early surge. Moreover, the previous surge has completed their own shipping goals, and the latter holds the supply of goods and barely maintains capital according to the cost calculation of the day. Under such circumstances, there is no intention to continue to pursue higher prices, so it is of little significance to adjust the selling price again.
However, after experiencing this short-term stimulus, the orders of polyester staple fiber and viscose staple fiber factories have been extended. Among them, the order schedule of some polyester staple fiber factories in Fujian has been as long as half a month. Therefore, the local polyester yarn price cannot be separated from the cost in the short term. Price promotions ensure the sales of polyester yarn traders in Jiangsu, Zhejiang and Guangdong. The tight supply situation of mainstream viscose staple fiber enterprises may last until early September. It has been guaranteed that the prices of viscose and rayon yarn will not decline. Therefore, in the next half month, yarn mills can choose to stabilize prices and wait for the signs of the “Golden Nine”. Previously, the prices of raw materials and some yarns were relatively strong relying on the support of orders.