Cotton Price Plummeting Support Insufficient Cotton Yarn Market Downward

According to statistics, the cotton yarn market has been declining since March. As of March 15, the business agency monitored the ex factory price of 21s cotton yarn in Shandong Province at 24225 yuan / ton.

Affected by the fall of Zhengzhou cotton, cotton yarn market delivery slowed down significantly since last week. Most yarn enterprises mainly wait-and-see, and the quotation remained stable for the time being. The prices of some products on the high side showed a downward trend. The prices of various cotton yarns dropped by 90-500 yuan / ton. As of last week, China's yarn inventory index was 8.8 days, China's yarn load index was 64.4%, cotton yarn inventory of textile enterprises was 5.1 days, cotton yarn inventory of weaving mills was 15.8 days, and pure cotton yarn factory load was 63.4%. Since the beginning of this year, cotton yarn prices have been rising, frequent price adjustments in the short term, it is difficult for customers to accept.

In terms of futures, since March, the main cotton yarn 2105 contract rose and then fell back. This week, the main contract settlement price was 23150 yuan / ton. Zheng Mian's 2105 contract fell below 15600 yuan / ton by the end of 16 days, and the settlement price was 15590 yuan / ton. The decline of futures makes the market wait-and-see mood increase, once cotton futures have any wind and grass, cotton yarn market will be turbulent.

Downstream: as of last week, the inventory of cotton grey fabric was 17.4 days, that of rayon grey fabric was 18.4 days, and that of domestic grey cloth was 17.8 days; China grey cloth load index was 65.3%. From the perspective of operation, grey cloth inventory decreased slightly, still at a low level. As most textile enterprises still have orders in their hands, which are in the peak season of the market at present, there are also many orders to April to May. The raw material inventory of downstream weaving mills is still relatively sufficient. The customers who just need to purchase are mainly sporadic and wait-and-see.

For cotton yarn, affected by the cotton market, the current cotton spot market has been lower since March, as of the 16th 3128b price 15989 yuan / ton, down 3.55%, the market trading cautious. At present, the inventory of cotton yarn and grey cloth is still at a low level. In the long run, the price of cotton yarn has limited downward space and is expected to be adjusted mainly in the short term.