Blank Market: The Market In July Is Obviously Weak, And Foreign Demand Is Not Optimistic

In the past month, the domestic cotton price has risen steadily, but the cotton yarn price is still in the decline channel. The market demand for grey cloth is light, and the overall price is weak. Some enterprises can only control the inventory level of products by reducing production, and the startup rate has slightly decreased.

one

Raw material Market

Since July, the turnover rate of reserve cotton has been maintained at 100%, which has given a certain support to the cotton price. The domestic cotton price has risen steadily. Textile enterprises actively bid for reserve cotton, and the purchase and sales of cotton spot market are cold. On August 6, the domestic price of 3128b cotton was 12470 yuan / ton, up 200 yuan / ton compared with the same period of last month. Cotton prices rose, yarn prices fell, textile enterprises continued to increase business pressure, raw material procurement to buy as you use, most of the cotton inventory in about a month, down from the previous month.

Pure cotton yarn market into the industry off-season, market orders further reduced, yarn sales overall light, prices continue to fall. The conventional products with relatively good sales in the early stage also began to fade, some enterprises reduced the price by 200 yuan / ton, and the sales of combed pure cotton yarn and rotor spinning pure cotton yarn were not good, and they were basically in a state of price and market. The increase speed of textile enterprises' inventory was accelerated. The yarn inventory of the surveyed enterprises exceeded one month, and the capital pressure increased greatly. The comprehensive start-up overall decreased compared with the previous month, maintaining the level of about 70%.

two

Grey fabric Market

Since July, the grey fabric market has obviously weakened, especially in the late July, weaving enterprises are short of orders, and enterprises with orders are mainly scattered small orders. The sales situation of conventional products is not good, the price is stable and weak, and some enterprises reduce prices to promote sales, but the effect is not ideal. In terms of varieties, there is still rigid demand in the market of conventional varieties, and the sales situation is relatively good; a small number of transactions of low count pure cotton grey cloth, the price is stable and weak; the overall demand for high count and high density varieties is weak, and the price continues to fall.

From last month's cumulative inventory rate, the enterprise's inventory rate is still lower than that of the last month, but the enterprise's inventory rate is still lower than that in the last month. In terms of profit, since July, cotton yarn prices have continued to decline, and grey cloth prices have fallen with the yarn prices. In the case of insufficient orders, the market competition is fierce, and the actual transaction negotiation space is large. The investigation enterprises said that the loss margin has expanded compared with the previous month, and the capital turnover is difficult.

three

Future prospects

At present, the number of confirmed cases in foreign countries is still increasing. Affected by the epidemic, the U.S. economy is facing great difficulties. More than 3600 enterprises have applied for bankruptcy protection, and the recovery of foreign demand market is not optimistic. From the domestic point of view, after the overall epidemic situation has been effectively prevented and controlled, the economic and social operation has gradually become normal. In August, according to the market situation in previous years, the market inquiry and proofing will increase before the traditional peak season. With the increase of downstream orders, the production of weaving enterprises is expected to gradually recover. However, this year, affected by the epidemic situation and the uncertainty of international trade relations, the market heat may not be as hot as in previous years.

The above is for reference only