Market Rational View Yarn Price Rise After Market Expectations

In recent days, the price of cotton futures has risen sharply, and the price of domestic yarn has been rising. However, the volume of follow-up is limited, for two reasons: first, near the new year, the stock of enterprises has basically stopped. At present, the large enterprises in the lower reaches are ready to stock up, and many small businesses are buying with them. Many of them have already been on holiday. With the price of cotton yarn rising sharply, some factories prefer to leave in advance. The two is profit accounting. After a year of big reshuffle, both downstream factories and trade yarns are already more rational, and are less likely to be dominated by the emotional psychology of buying or selling. Due to the impact of the first phase of the Sino US trade war, market confidence has recovered, and some of them are expected to have recirculation. However, due to the short season, there are not many orders in the short-term market, and the price of grey cloth is also very low.

Although the market has been relatively calm in the past few days, we are generally optimistic about the market after the Spring Festival. Although the price increase is earlier than expected, it is also expected by most people, and the price of grey cloth has also been raised. Despite the slight price increase in the short run, we are somewhat expecting the post holiday market.