According to the Commodity Market Analysis System of SunSirs, the price of cotton yarn has slightly decreased this week (8.3-8.9). As of August 9, 2024, the reference price for 21S pure cotton yarn in the domestic Shandong region is 22900 RMB/ton, which is the same as last week's price; The reference price for the 32S pure cotton yarn market is 23950 RMB/ton, a decrease of 500 RMB/ton or 2.04% from last week's price
Price trend
The traditional off-season for textiles remains the same, with cotton yarn futures prices falling sharply. The market has a strong wait-and-see atmosphere, and downstream customers are in urgent need of purchasing. There is a single negotiation, and the market is mostly focused on inquiries to lower prices, with actual negotiations continuing to be weak. The high temperature weather continues, market demand is weak, orders are low, and the industry's enthusiasm for starting production is not high. During the week, the overall start-up of textile enterprises decreased. As of August 9th, the start-up load of mainstream textile enterprises was 67.4%, a decrease of 1.03% compared to the previous month. Factory production restrictions have increased, and low-priced cotton yarn is selling smoothly in the market. Airflow spinning cotton yarn orders are better than ring spinning, and some factories have tight orders, resulting in a narrow decline in cotton yarn inventory. As of August 9th, the yarn inventory of major regional textile enterprises was 28.2 days, with a weekly decrease of 1.74%.
Analysis review
Zheng cotton futures have fallen sharply, traders have lowered their basis settlement prices, and cotton inventories remain high. Coupled with expectations of increased production in the new season, this has suppressed prices; Downstream has entered the traditional off-season end, and the market has low expectations for peak season orders. It is expected that cotton prices may fluctuate and fall in the coming week.
In terms of weaving, the traditional "Golden September and Silver October" peak season market is approaching, but the textile industry still has low expectations for the peak season performance, and terminal demand is relatively scarce. The demand for autumn and winter orders is slow to start, coupled with the recent impact of high temperature weather, some weaving enterprises are still in a state of production stoppage and restriction. Currently, the average operating rate of fabric factories is 38.30%, with a weekly decrease of 0.60% and a year-on-year decrease of 0.51%.
Market outlook: The domestic cotton yarn market prices have slightly declined, and the operating rate of textile enterprises still shows a downward trend. Textile enterprises strictly control production and sales, and some factories offer discounts on actual orders, resulting in a slight reduction in finished product inventory. The decline in raw material prices and lack of confidence among textile enterprises have led to lower expectations for the peak season of "Golden September and Silver October". The market is cautious and observing, and it is expected that cotton yarn prices will fluctuate next week.
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