Why Does Yarn Continue To Seek Bottom

Recently, many textile enterprises feedback that the price of pure cotton yarn, polyester yarn and man cotton yarn is still low, especially in July, the market is more worrying. The main manifestations are as follows:

1. Cotton yarn has fallen to the bottom, still no rebound signs. On the 14th, a person in charge of a cotton mill in Zhengzhou, Henan Province, introduced that the prices of 21s and 32S of common combed yarn were 17500 yuan / ton and 18500 yuan / ton respectively. Since the beginning of June, the price of conventional yarn has decreased by 500-700 yuan / ton. After entering July, the price of conventional yarn continued to decline slowly and boiled frogs in warm water. I wonder when this situation will come to an end. Combed yarn also showed a downward trend. Take comber 40s as an example: on the 14th, a factory in Binzhou, Shandong Province, quoted 21900 yuan / ton, which was 2100 yuan / ton lower than the peak of 24000 yuan / ton in March this year. According to the manufacturers, since this year, combed yarn has been in a "cliff type" decline. From the middle of March to the beginning of May, the combed yarn has plummeted by nearly 2000 yuan / ton. Since the middle of May, it has not only fallen.

2. Polyester yarn affected by raw materials, the recent drop continued. According to the feedback from some small and medium-sized mills in Henan, Hebei and other places, as of the middle of July, the mainstream quotation of pure polyester yarn t32s in the market was 9600 yuan / ton, and the higher quotation was also below 10000 yuan / ton; the mainstream quotation of t45s was around 11000 yuan / ton, and the recent market was mainly falling. From the trend, pure polyester yarn since May can be described as ups and downs. Take t32s as an example, from May to July, it rose first and then fell, the high point was around 10000 yuan / ton, and the recent price was low.

The market has paid more attention to the trend in the later period, but there is a general lack of confidence. According to an industry source, the cumulative decline of pure polyester yarn in 2020 is more than 2000 yuan / ton, and we are eager for the price to return to the level at the beginning of the year. The cotton yarn continued to search for support. According to market feedback from various regions, since July, the human cotton yarn has been oscillating downward. As of July 14, the r30s price of a factory in Dongying, Shandong Province, was 12000 yuan / ton, down 100 yuan / ton compared with last Friday (10th) and 2300 yuan / ton compared with the beginning of March this year. According to the analysis, the main reasons are as follows:

First, the United States, India, Italy, Spain and other countries "re blockaded", making foreign trade orders more difficult. Affected by the epidemic, many states in the United States suspended the economic restart plan, India's Uttar Pradesh announced the re blockade, Spain returned to the closure state, Italy extended the state of emergency In addition, from July 9, the United States resumed to impose 25% tariff on some excluded goods. As a result, domestic enterprises' trade orders are even worse. They have no choice but to switch from export to domestic sales and have to trade in low prices for sales.

Second, the raw material market is always difficult to restart, which objectively drags down the yarn. According to local traders and dealers, as of the middle of July, the quotation of Xinjiang machine picked cotton of "double 29" in the mainland was 12500 yuan / ton (delivery, public order, with ticket), and the quotation of "double 28" was around 12300 yuan / ton, which was about 100 yuan / ton lower than the price center of the previous week. Compared with the first day of the first day in Shandong Province, the price of staple fiber decreased by RMB 544mm / D in the first-line market of Shandong Province. At present, the mainstream price of viscose staple fiber is 8600 yuan / ton, which is also in the decline channel. Therefore, the raw material market is difficult to start, objectively drag down the yarn market.

Third, the market pessimism spread, the main body dare not enter the market easily. In 2020, the global epidemic situation has not yet been controlled in some countries; the international crude oil price has plummeted, and so far there has been no obvious improvement. The whole international situation is turbulent and unstable. Under the "cash king" mentality of the main bodies, there are many obstacles to economic recovery.

To sum up, yarn bottoming process or will continue, the main body of the market should be cautious operation, ready for industry reshuffle.