Will the decline in raw materials lead to a decline in cotton yarn prices
“Since the cotton reserves came out, the price of cotton has dropped a lot.” On the 30th, a person in charge of a textile company in Shandong said that taking their factory as an example, the cotton auctioned in early March and the recent The price difference of cotton auctioned and stored is about 700 yuan/ton. Their factory is a company that mainly produces pure cotton yarn. The price of raw materials has dropped so much. On the one hand, the company has expanded its profit margins, but on the other hand, it feels the signs of a price war among its peers.
“We heard that some manufacturers have slightly lowered the price of conventional yarn.” The person in charge said that on the 30th, the prices of carded 32S and 40S produced by their factory were 23,400 yuan/ton and 24,600 yuan/ton respectively. yuan/ton, both unchanged from yesterday. But they know that some surrounding manufacturers promise to give downstream discounts of 100-200 yuan/ton during actual order transactions. This kind of “overt stability and covert reduction” action directly affects companies that stick to prices.
It is understood that as the price of reserve cotton has dropped by 700-800 yuan/ton, the profits of most fabric factories have turned from negative to positive, and some companies have considerable profit margins. For example, a pure cotton textile factory in Zhengzhou, Henan Province mainly produces carded and combed yarns with a count of 50S and below. The current profit margin of spinning yarn is 1,000-1,300 yuan/ton. However, manufacturers also have unspeakable secrets, mainly in two aspects: in terms of orders, apart from old customers, it is more difficult to acquire new customers. In order to attract some new customers, their factory offers some preferential policies. Second, for example, the current market sales of carded 32S, combed 32S, and 40S are relatively smooth, but the sales of other high-fine combed and high-match yarns are not satisfactory. In addition, the demand for some medium and low-count yarns is also weak. In order to attract customers, companies have also implemented price reductions on some spinning yarns that are selling slowly.
As one market person said, there are still many difficulties in China’s spinning yarn market. The price of upstream raw materials has fallen. In fact, it is a good time for Chinese textile companies to adjust yarn prices again and improve their comprehensive competitiveness. . In addition, the inventory pressure of pure cotton and natural cotton cloth has been relatively high recently, and the price has remained stable. On the 30th, the price of C40*40 133*72 63″ poplin from a factory in Jiangsu was 7.5 yuan/meter, and the price of C21*21 108*58
The price of 63″ yarn card is 8.68 yuan/meter, and the price is stable.
“There may be a price reduction process for cotton yarn in the near future.” The market person said that the price of cotton from the state reserve has shown a stable trend recently, but the price level has dropped by about 800 yuan/ton compared with the beginning of the reserve round. , when the decline in raw material prices is fully transmitted to fabric factories, it is estimated that price reduction promotions may become a trend. Second, the downstream market has not improved significantly, and the price of imported yarn has continued to fall recently, which also gives domestic yarn a sense of price crisis. Therefore, a decline in cotton yarn prices may not be far away.
The prices of chemical fiber and viscose products have fallen recently. On the 30th, the price of 1.4D direct-spun polyester staple fiber in Jiangsu and Zhejiang was 7500-7800 yuan/ton, and the actual order transaction can be discounted by about 200 yuan/ton. The price center dropped by nearly 200 yuan/ton compared with last week. The price of viscose staple fiber is 16,700-17,000 yuan/ton. Manufacturers say there are not many orders, and actual orders are generally around 16,500 yuan/ton. Due to the decline in the prices of chemical fiber and viscose raw materials, the prices of some blended chemical fiber fabric yarns, pure polyester-cotton, and rayon cotton yarns have fallen slightly recently, which will also bring a negative atmosphere to the market.
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