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Yarn prices rise, pure cotton enterprises are under great pressure
Recently, the price of cotton yarn in Hebei, Shandong and Henan has continued to rise. However, due to the pressure of cost and capital, in December, there has been an increasing trend in textile enterprises to stop work and limit production.On the 6th, the prices of C21S, 32S, and 40S of a factory in Shandong were 20,100 yuan/ton, 22,300 yuan/ton, and 23,600 yuan/ton, respectively, up 100-200 yuan/ton from yesterday. According to the company's feedback, the recent sales of conventional pure cotton yarns are acceptable. In addition, the company would rather reduce the operating rate and maintain a low inventory operation method. The finished product inventory of the company is 9-10 days. At present, the cost of cotton yarn is still upside down at 500-800 yuan / ton. In order to reduce losses, enterprises either reduce the raw materials or increase the price of cotton yarn. Although Zheng cotton has fluctuated violently recently, the cotton spot is as stable as a rock, and textile companies can only raise the price of cotton yarn. As of the 6th, the price of cotton in the Jilu region was 16,400 yuan/ton for hand-picked cotton "Double 29" in Xinjiang, and the price of machine-picked cotton 3128 was 16,000 yuan/ton.
In addition to pure cotton yarn, the market of pure polyester yarn and polyester-cotton yarn also rose. As of the 6th, the prices of T65/C3521S, 32S, and 45S of a factory in Hebei were 14,000 yuan/ton, 15,300 yuan/ton, and 17,900 yuan/ton, respectively, up 100-150 yuan/ton from last Friday (2nd).
According to the analysis, there are two reasons for the rise in the price of blended yarn: First, the price of polyester staple fiber has recently rebounded. As of the 6th, the price of 1.4D direct-spun polyester staple fiber in Hebei, Shandong and Jiangsu and Zhejiang areas was 7550-7750 yuan/ton, an increase of 50-100 yuan/ton compared with last Friday (2nd). The market believes that the recent stabilization of the polyester market is conducive to the spot of polyester staple fiber, and the recent price focus may continue to rise. Second, the sales of polyester and cotton yarns are good, and enterprises take the opportunity to raise prices.
According to market feedback, the raw material prices of enterprises producing polyester-cotton yarn and pure polyester yarn are relatively low, and the profits are relatively abundant, which can be said to be worry-free for production and sales. And pure cotton yarn enterprises are under heavy pressure. First of all, raw materials are scarce. Recently, there have been continuous reports from textile companies that due to the difficulty in exporting cotton from Xinjiang, many have signed purchase and sales contracts and paid for the goods, but because the wagons cannot be coordinated, cotton cannot be exported. Secondly, almost all cotton companies and middlemen require cash payment, otherwise no transaction will be made regardless of whether the price is high or low. "This is a big test for the ability of textile enterprises to pay for their funds." A market source said that many enterprises had to continue to reduce the operating rate because they could not pay for the goods. Especially near the end of the year, there are more and more places where companies use money, and the pressure on corporate funds is increasing day by day.
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