Cotton Futures Downward, Whether It Directly Led To The Sale Of Cotton Mills.

In May, Zheng cotton plummeted many times, and the price reached a new low in the past two years.

With the decline of Zheng cotton, cotton yarn futures also followed closely, creating a record low.

Futures prices downward, cotton and cotton yarn spot price center of gravity has gradually been explored.

Grade 3128 cotton at the beginning of the month was 15450 yuan / ton, down to 14220 yuan / ton in May 23rd, or 7.5%.

Cotton yarn CYT32 at the beginning of the month was 13500 yuan / ton, down to 12650 yuan / ton in May 23rd, or 6.3%.

Domestic C32S at the beginning of the month was 23980 yuan / ton, down to 23520 yuan / ton in May 23rd, or 2%.

The price of cotton yarn has also been reduced to the grey cloth, resulting in the downward trend of the price of grey cloth.

In addition to raw materials, there are other reasons for the current sale of cotton mills.

First, the off-season is ahead of schedule, and orders are reduced.

In 2019, the whole cotton grey fabric market maintained a "peak season" and "off-season".

After the Ching Ming Festival, the order of the weaving factory was significantly reduced, and the order was finished.

Therefore, in the case of order shrinkage, the way that the weaving factory wants to get the order is to lower the price and reduce its profit, and the price war is inevitable.

Two, external demand is weak and exports are decreasing.

According to statistics from the General Administration of customs, China's textile and clothing exports totaled $75 billion 764 million in the 1-4 months of 2019, down 4.22% from the same period last year. The total export volume of textiles was 36 billion 671 million 800 thousand US dollars, up 0.76% over the same period last year. The total export volume of garments was 39 billion 92 million 100 thousand US dollars, down 7.60% from the same period last year.

In April, the total export volume of textiles and clothing totaled 19 billion 460 million US dollars, down 8.72% from the same period last year.

From the data, the growth of China's textile exports is declining.

In the case of shrinking export orders, cotton mills have turned their attention to the domestic market.

Three, inventory backlog, preferential shipment.

Due to the reduction of orders, the weaving mill produces regular varieties to ensure the normal operation of the machine and to prevent the loss of workers, but at the same time, it also causes a backlog of inventory.

In order to return the funds, sales are the first choice for weaving mills.

The fundamental reason for the downward price of grey cloth is that the market demand is weak, and the pressure on the cotton mill can never be released.

At present, the price of raw materials will bring a bit of pressure to the textile mills to release the pressure, but it will eventually be limited.

Nowadays, Sino US trade frictions are continuing. The textile industry in Southeast Asia is also constantly nibbling the share of the Chinese market, and the weakening of market demand is also reasonable. Therefore, cotton mills should optimize the industrial structure, increase the added value of products and increase the core competitiveness of products, so as to enable enterprises to go further.