After The Beginning Of The Year, The Price Of Cotton Yarn Is Calm, Manufacturers Actively Offer To Wait For The Market To Resume.

At the beginning of the new year, the long holidays of the Spring Festival ended. As of February 14th, the average price of domestic C32S was 22992 yuan / ton, compared with that before the holiday. Workers in various industries are returning to work. According to Xinhua news, Shandong, Anhui, Jiangsu and other places textile enterprises have started many, although the order is temporarily less, but in order to maintain their livelihood, have started production.

Most textile mills in Shandong have gradually started offering quotations, but due to the festive atmosphere, manufacturers are mainly overhauled by equipment, and the normal operation still takes several days. It is understood that many textile factories in Shandong are the first to start with the business department, and some stock manufacturers actively offer quotations. Some of them have no product inventory, and manufacturers also make an early quotation according to the cost of raw materials and the future market, and actively seek the order products. Most manufacturers plan to start production after fifteen of the first month.

Most of the textile enterprises in Anhui will return to work before and after the Lantern Festival, and a few large textile enterprises will resume production in February 11th. It is understood that most textile mills before the Lantern Festival resumption is mainly aimed at stabilizing workers and preventing workers from running too late. From the current rate of resumption of enterprises, most textile mills have more or less the phenomenon of loss of workers, and the rate of commencement is lower than before. Therefore, recruiting new employees has become the top priority of the post textile mill. In addition to recruiting new workers through the local talent market, some textile factories have also sent workers to Henan and other populous provinces to recruit workers. Some textile mills have introduced the "old belt and new" incentive policy to recruit new employees.

And the Jiangsu area is not much better. Due to the snowfall and rain during the Spring Festival, it has brought difficulties for the employees to return to the factory smoothly. At present, the local talent recruitment meeting is more lively, and the enterprises lack more staff. But for a variety of reasons, some textile workers' front-line staff outflow phenomenon still exists. When the downstream market is deserted and the efficiency of products is greatly improved, it is very difficult for enterprises to develop and operate. When choosing the required talents, we should also consider the proportion structure of labor expenditure and product production cost. Therefore, the current recruitment situation belongs to many consultants and low success rate.

At present, the spinning enterprises have started to make pre order orders and arrange the distribution of logistics. The procurement of raw materials and cotton yarn sales are mostly at a standstill. Even if there are mainly oral inquiries, the actual turnover is small. In addition, two days after the commencement of the festival, Zheng cotton showed a large margin, first fell and then rose, and the trend of shock adjustment did not decrease, which inevitably disturbed the buying and selling chords of the enterprises. Many enterprises have indicated that they will transform and upgrade in the future by phasing out backward production capacity and replacing higher production equipment with higher automation. Some enterprises plan to reduce production and marketing scale after the plan, and some enterprises adjust the operation of enterprises after watching the market trend. Generally speaking, after the beginning of the year, the overall situation of the yarn market is still relatively calm. There is no wonder in buying and selling, and the pursuit of firm efficiency is steady. Whether the mills or traders are still waiting for the market to recover.

As for the import yarn, as of February 14th, the spot price of FCY Index C32S was 22884 yuan / ton, compared with last month's slight rise of 8 yuan / ton. In January 2019, when the RMB exchange rate was in appreciation, it rose from 6.8881 yuan to 6.7493 at the end of the month, and the appreciation rate was about 2%. In February, the exchange rate was in turmoil. The appreciation of the RMB exchange rate was beneficial to the import yarn, and the cost of import yarn settlement decreased. After the start of the year, traders' shipments have not yet been launched, but the number of traders has started to increase, and the stock level of traders is rising. Traders ordered large quantities in the middle of 2 months and arrived in Hong Kong in -3. The supply pressure is expected to be formed in late February and early March. Therefore, the supply side still has some pressure, which is mainly determined by the downstream demand. Demand is still uncertain, and the market is cautiously optimistic. Sino US trade negotiations have a huge impact on cotton supply and demand and market mentality.

It is worth noting that the comprehensive and progressive trans Pacific Partnership Agreement (CPTPP) came into force in Vietnam in January 14th. CPTPP phased out 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened protection of intellectual property rights. Joining the CPTPP has brought an unprecedented market to Vietnam. I believe that Vietnam's demand for textile raw materials will expand in the near future. This can also explain why Vietnam's yarn price increases in recent years are greater than those in other countries.