Recently, Zheng cotton futures exceeded the 17,000 yuan/ton mark and rose sharply for two consecutive days. Downstream textile companies also followed suit and raised cotton yarn prices.
According to feedback from textile enterprises in Jiangsu, Shandong, Hebei and other places, due to the sharp rise in cotton prices, in order to ensure the production profits of enterprises, the price of cotton yarn has been increased by 200-500 yuan. Yuan / ton. Since most textile companies produce yarn according to the “production is determined by sales” model, and supply needs to consider the acceptance of fixed customers, textile companies are more cautious in raising prices. At present, the purchase and sale of high-count gauze is relatively smooth, and the resistance to price increases is slightly weak. However, the shipment of some low-grade gray fabrics is slow, and there is strong resistance to accepting price increases. A textile company in Shandong said that cotton prices have risen rapidly in recent days, and the high-priced cotton has far exceeded the price during the Spring Festival. The current textile market is in the off-season, and midstream and downstream companies will definitely need some time to accept the increase.
Although the short-term surge in cotton prices has put certain pressure on downstream industries, some companies have stated that based on the current order schedule in the textile market, most companies’ orders can be scheduled to 8 At the end of the month, a few companies can wait until October. As the peak season of “Golden September and Silver October” approaches, textile companies have greater expectations for follow-up orders. Judging from this year’s operating conditions, yarn profits have remained at a high level, especially for medium and high-count yarns, with profits basically ranging from 1,000 to 2,000 yuan/ton. If winter clothing orders increase in the future, the profits of individual textile companies will double this year.
The recent price increases of cotton and cotton yarn have further consolidated the industry’s bullish confidence. However, it is still more than a month before the launch of new cotton and the arrival of the peak textile season. Market parties will still Achieving stable returns and preventing unexpected adverse risks are top priorities. </p
