Cotton Market Is Booming Season Is Expected To Gradually Increase

The price of conventional pure cotton yarn has not yet fallen out of the weak market. It is expected that there will be little chance of reversing the market in the first half of 2015.

Although the profit of medium and high count cotton yarn is acceptable, the downstream demand has not been effectively released. It is expected to be at a steady state. The bleaching and long staple cotton high count yarn will continue to rise at a later stage, but there is little room for improvement.

In addition, the price difference between conventional imported cotton yarn and domestic cotton yarn is not large, which will become a normal condition, while the import volume of imported 40 pack or bleached products will be increased compared with last year.

It is understood that individual textile enterprises value the packet bleaching market, and use Vietnamese textile enterprises to produce high C32S to pport to the Chinese market for sale, with considerable profits. Later this phenomenon may increase.

Pure cotton yarn price is stable and weak.

In pure cotton yarn, the price of conventional pure cotton yarn is weak, and the middle and high branches keep stable. The compact spinning is better than the ring spinning, the ring spinning is better than the air spinning, and the top grade yarn is better than the low grade yarn.

The first quarter is coming, the traditional textile peak season has arrived. Can the cotton spinning peak season be reflected in this year? By comparing the price trend of pure cotton yarn in 2013, it has been found that the characteristics of the peak season of pure cotton yarn are obvious in recent years.

Among them, in 2013 1-5 months, C32S price remained at 26000-26200 yuan / ton, the price showed an upward trend; in 2014 1-5 months, the C32S price was 24500-25500 yuan / ton, and the price showed a downward trend, and the price of C32S was 20500-21000 yuan / ton in 2015.

From the perspective of price comparison, the price of C32S in 2015 decreased significantly compared with that in 2014, with a decrease of 4000 yuan / ton. However, C32S has not stopped at present, and is in a stable and negative state.

Combined with the downstream orders and raw material trend, it is estimated that the probability of C32S cotton yarn inversion in the first half of this year is unlikely to be maintained.

High count yarn may increase slightly in the latter stage.

Imported yarn and

Spreads narrowed to normal.

Since 2014, the price difference between imported yarn and domestic yarn has narrowed down. The price of the imported yarn and the domestic yarn were basically flat at the end of 2014, and even appeared to hang upside down.

Taking C32S as an example, as of April 8th, the price of India yarn was 20000-20400 yuan / ton, and the price of domestic yarn was 20500-21000 yuan / ton, the difference between them was 400-500 yuan / ton, compared with 1000 yuan / ton in previous years.

Obviously narrowed.

Does the narrowing of the price difference mean that the imported yarn has no advantage? The problem has been discussed since last year.

According to the insiders, the textile factories that have been used to using imported yarn will still choose imported yarns under the condition of stable suppliers and stable quality of goods, because imported yarns still have advantages over domestic yarns in terms of strength and net weight settlement.

However, some textile factories have abandoned imported yarn instead of domestic yarn.

There is another point to note. Recently, some textile mills reflect the increasing quality of India cotton yarn, which affects the downstream customers to some extent.

In addition, this year, the market is concerned about bleached cotton yarn, which has attracted a lot of import traders and textile enterprises. In order to cater for the domestic demand for package bleaching, many traders and textile enterprises are turning their attention abroad, and Indonesian yarn has become the focus of attention.

Domestic yarn is profitable theoretically.

Since the second half of 2014, the profit of pure cotton yarn has been turning into profit in theory. When the new and old cotton is alternately, the profit margin is larger, and it reaches more than 1000 yuan per ton at some time. However, with the price of cotton yarn falling along with the price of cotton, the profit margin of cotton yarn is narrowed.

Conventional pure cotton yarn has a small profit, medium high or high grade pure cotton yarn profit is still available, the current JC60S profit margin is mostly above 1000 yuan / ton, but because of low output and small demand, its comprehensive profit is not necessarily cost-effective than producing 40 or 32 yarn.