After the National Day, the prices of raw materials such as cotton and cotton yarn rose rapidly due to the return of orders and the recovery of downstream demand. Recently, the yarn market has returned to rationality after a surge. At present, both textile mills and traders basically wait and see the market. Then, after orders are transferred domestically and yarn prices have risen, what is the current operating situation of yarn companies in various regions?

Before National Day, most cotton spinning mills have relatively high cotton yarn inventory. The high level of cotton yarn inventory puts a lot of pressure on corporate capital turnover, but after the holiday, the soaring prices of cotton and cotton yarn futures have brought good opportunities for cotton textile companies to destock.

 

Driven by the return of orders and the “Double Eleven” shopping carnival, the order situation of yarn companies has improved significantly compared with the previous few months. This has also been confirmed by spinning companies in various places. However, regarding the future market conditions, most spinning companies say that the uncertainty is still large.

 

For fabric companies, the rise of upstream raw materials such as cotton prices and yarn prices will undoubtedly increase their production costs, but the prices of fabrics have not risen with the rise in raw material prices.

 

Since mid-to-late October, the cotton yarn futures price has dropped from 22,260 points to 20,630 points, down to 1,630 points, or 7.32%. The sharp drop in futures prices had a serious impact on cotton yarn spot sales. Not to mention the drop in spot sales prices, sales have slowed down significantly, and the turning point of textile enterprises’ inventory has appeared.

 

As of November 5, the overall cotton yarn inventory of textile enterprises is still not high. However, inventory is an important factor affecting the operation of textile enterprises. The quotations of textile enterprises in various regions currently vary greatly. One of the factors causing this phenomenon is that some textile enterprises currently have low inventories and are unwilling to lower prices. However, most textile companies are still producing pre-orders, and many are still at full capacity. As for the later stage, although there are some orders, the downstream prices are also very demanding.

 

The person in charge of textile enterprises has revealed that the crazy market in October may pay a heavy price after the “Double Eleven”. That is to say, the winter clothing sales are not good, and it is difficult for clothing customers to pay the balance, extending the debt.

 

Another industry insider analyzed that not all manufacturers in the market can receive large orders of hundreds of thousands of meters or millions of meters. At the same time, the market orders are very sensitive to prices and not strict to fabrics.