Ji Lu Yu: Xinjiang Cotton Sales Heating Up Downstream Market Downturn (12.2-12.6)

This week's raw materials: Xinjiang hand picked cotton 3128B recently quoted prices basically maintained 13000-13300 yuan / ton level, Hebei and other places of the mainland cotton prices are constantly lowered. At present, there are a few enterprises in the cotton market, and some individual manufacturers are ready to stock up before the year to bring the market into motion. However, most downstream businesses take into account the costs and risks, and the overall market climate is sluggish. The market outlook is not clear enough, and they dare not rush to purchase. Moreover, most manufacturers' financial situation is not optimistic, so they try to slow down their pace and move forward steadily. But in the light of the current information, the stalemate of the market has broken through in recent days, and the downstream has already been eager to go to the performance of Xinjiang's procurement. It is estimated that the cotton market will gradually develop towards the good side. The current price of polyester staple fiber is basically stable at 6500-6700 yuan / ton. The price of big polyester manufacturer is slightly higher and stronger, but at the end of the year, the intensity of arrears and delivery is reduced and the control is stricter. The most stressful raw material is viscose staple fiber manufacturers. Prices continue to go down, they want to stabilize prices, but the downstream market demand is not strong enough, resulting in huge pressure on shipment.

Throughout the week (December 7th -11), the overall sales volume of the Hebei Luyu yarn is flat. According to the feedback from the downstream, most of the grey fabric factories are the reduction of orders, the small profit margins, and the decline of the start-up rate. The current situation of textile mills has significantly reduced the yarn sales volume of the spinning enterprises. At the end of the year, the accounts receivable are the main ones. The decrease of the production and marketing rate undoubtedly increases the inventory pressure. Therefore, some spinning enterprises in Shandong market adopt the strategy of continuing to lower the yarn price, especially the yarn manufacturers of the middle grade will have greater preferential treatment for the actual products, and strengthen the strength of the shipment at the end of the year, so as to ensure that the funds can be returned to the cage in time and strive for the normal operation of the new year. Under such circumstances, the quotation of all kinds of yarns in the market is also very disorderly, and the gap between the price and the variety is sometimes very large.