Looking Forward To The Market Recovery, Yarn Sales Are Still Weak

From the feedback of Cotton Traders and processing enterprises in Henan, Shandong, Hubei and other places, Xinjiang cotton inquiry, transaction and delivery after the Dragon Boat Festival improved to a certain extent compared with June, "double 29", "double 30" and other high-quality warehouse single cotton trading also hit the bottom and rebounded.

The price of "double cotton picking machine" was increased from RMB 12450 to RMB 12600 per day. With the continuous rebound of ice and zhengmian, the mentality of individual traders and ginning plants has also changed, resulting in the phenomenon that they are reluctant to sell or deliberately raise their prices substantially.

In the past week, the domestic cotton futures prices continued to rebound, while the terminal prices and orders of grey cloth, textiles and clothing did not improve. Some spinning and weaving enterprises in coastal areas implemented joint production restriction and price protection. Cotton consumption demand continued to fall, and the profits of gauze factories fell to even upside down. Therefore, some small and medium-sized cotton mills were unable to do their best because they were "under the enemy". Jiangsu Yancheng, Xuzhou and other local textile enterprises reported that since the end of June, the demand for c32s and c40s high-school matching common combed yarn in Guangdong, Jiangsu and Zhejiang markets has also slowed down, and jc50s and above cotton yarn orders have not improved for three consecutive months. Therefore, the market is expected to continue to increase the number of textile enterprises that reduce production, take turns on holidays or even stop production in the middle and late July.