In late July, cotton futures and ICE futures all stopped falling, and some cotton merchants slightly increased the spot price of Xinjiang cotton, but the cotton spinning market is still relatively deserted. Through contact with textile enterprises in Shandong, Henan and Hebei, the company generally said that the cotton yarn is difficult to raise, and the order pressure is still relatively large.
In recent years, the bad voice of the real economy has been fermented every once in a while, and this year has become more intensive, and the clothing store has swept the world. According to a US data, as of July, there were 7,062 retail outlets closed in the US this year, and the number of stores closed for the year is expected to reach a record 12,000.
The heads of garment enterprises in Zhengzhou, Hebei and Shijiazhuang, Hebei Province, said that due to the serious homogenization of commodities, the life expectancy of clothing products has become shorter and shorter under the competitive environment of imitation. In July of this year, large wholesalers, garment factories and physical stores that were closed down in various places were experiencing a new wave of closing stores.
According to the port trader, the impact of the outer yarn has also intensified. Since June this year, China's main port logistics area and bonded area have been full of yarn, and the inventory is mostly over 100,000 tons. As of late July, it has reached a historical high of 120,000 tons. In addition, the price difference between imported yarn and domestic yarn has gradually narrowed. At present, the domestic medium-sized textile enterprise C32S has a yarn supply price of 21,700-2,1900 yuan/ton (the national storage cotton and cotton ratio accounts for more than 50%), while the port C32 has a high distribution package for India, Vietnam, Pakistani yarn prices are also mostly at 21800-22000 yuan / ton. In contrast, the imported yarn quality index is good, the dyeing consistency is high, and the grey yarn and fabric enterprises prefer to use imported yarn.
Under the pressure of imported yarn impact and the closing trend of clothing stores, the status quo of textile enterprises with low orders and high inventory is clouded. On the 24th, a person in charge of a textile factory in Shandong said that the spinning capacity of the factory exceeded 170,000 spindles, but the order was less than half of the production capacity. The company was looking for orders while the production was limited, but the inventory was still rising. It is understood that in general, the inventory of textile enterprises is no more than 15 days, and enterprises with more than 30 days of inventory this year abound. Under high inventory, corporate capital turnover is not working, and the procurement of raw materials is more difficult. Doing everything possible to destock has become the main goal of the recent textile enterprises.
Faced with a weak market environment, the contradiction between supply and demand is prominent, and the support of cost is weak. Textile enterprises mainly rely on the implementation of pre-orders, but the price increase is difficult, and the price of medium and low-yield yarns is not guaranteed. Although the recent Sino-US trade negotiations have released good news, the impact on the textile market is limited. For the yarn products in the off-season, the bearish factors occupy the leading position. In addition, the market is very clear that the negotiation prospects are subject to large changes and may be short-term. Prices will remain weak.
Jiangyin Jinmeng Textile Co., Ltd. specializes in production and management: polypropylene high-strength yarn, woven geotextile, high-strength polypropylene industrial yarn, polypropylene industrial yarn, polypropylene high-strength yarn, woven geotextile fabric, bag cloth, geotextile, engineering fiber, woven high-strength industrial Filament geotextile, engineering staple fiber, polypropylene high-strength yarn.
Textile observation: fermentin
