Price trend

According to the Commodity Market Analysis System of SunSirs, after the holiday, under the influence of favorable macro policies, the price center of the cotton yarn market continued to shift upwards, but overall purchase and sales remained stable. As of October 11, 2024, the reference price of 21S cotton yarn in the domestic Shandong region was around 23,000 RMB/ton, an increase of 1.77% compared to the previous period; The reference price for 32S cotton yarn in the market was 24,300 RMB/ton, an increase of 1.78% compared to before the holiday.

Analysis review

After the holiday, the price of Zhengzhou cotton yarn futures fell, and the market atmosphere was strong with a wait-and-see attitude. Downstream textile factories were cautious in their procurement, and inquiries about orders and prices were mostly made, resulting in fewer actual transactions. In some markets, the C32s ring spinning price was 22,000-23,000 RMB/ton, while the high tight C40s price was 23,000-24,000 RMB/ton. Some manufacturers raised their cotton yarn prices by 200-500 RMB/ton. Against the backdrop of the peak season, the increase in market orders was limited, coupled with the rise in raw material cotton prices. After yarn companies raised yarn prices, downstream acceptance was not high, and companies still lacked confidence in future demand.

During the National Day holiday, textile companies had tight orders, and after the holiday, the operating load increased, leading to a gradual recovery in production atmosphere for some manufacturers. As of October 10th, the operating load of mainstream textile enterprises was 73.6%, with a month on month increase of 1.66%. During the holiday season, some manufacturers oversold cotton yarn, resulting in a slight decrease in inventory for textile companies. As of October 10th, the yarn inventory of major regional textile enterprises was 25.1 days, with a weekly decrease of 1.18%.

In terms of raw materials: As of October 11th, the domestic Zhengzhou cotton futures were fluctuating and falling, the supply pattern continued to be loose, macro sentiment cooled down, and prices returned to fundamentals. With the decline in futures prices, the purchase price of 40% cotton by machine picking has fallen to 6.3-6.4 RMB/kg, and it is expected that cotton prices may fluctuate to be weaker in the next week.

On the demand side: The downstream fabric market has resumed normal operation after the holiday, but orders were scarce, making it difficult for the fabric market to rise. The price differentiation between upstream and downstream in the industry chain was obvious, and the transmission of terminal prices was not smooth. The manufacturer was cautious in purchasing raw materials and was considering lowering the start-up rate after the end of the production order.

Market outlook

After the holiday, the operating rate of textile enterprises slightly rebounded, and finished product inventory continued to decline, with a slightly better production and sales margin. As of October 11th, downstream follow-up orders were slow, and traditional peak season orders had not performed as well as the same period. Coupled with the decline in raw material prices, the market maintained a cautious and wait-and-see attitude, and it is expected that cotton yarn prices will fluctuate next week.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.