Price trend

According to the data of SunSirs, the price of 32S cotton yarn in Shandong on the 5th was 26,250 RMB/ton, down 2.05% from the previous month.

Analysis review

The cotton yarn market remained weak, and the decline in cotton prices had restored the profits of yarn companies. As the "golden September and silver October" approaching, the delivery speed of finished products has accelerated, and market orders have recovered to a certain extent compared with the previous period, but the degree of improvement is limited, and the inventory is mainly replenished at low prices.

The fundamentals of upstream cotton have not changed significantly, and the supply and demand side is strong outside and the pattern of weakness inside continues. Approaching the new cotton market, the supply pressure will gradually increase. The price of cotton fabric in the downstream remained stable as a whole. Weaving factories in Shandong, Zhejiang and other regions reported that the order situation had improved, and the inventory fell compared with August, but the consumer demand was still weak, and the destocking rate of finished product inventory was relatively slow.

Market outlook

In the future, it’s needed to pay attention to the order situation. In the short term, the cotton yarn market will be weak and sorted out.

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