Market Analysis: China'S Demand For Cotton Yarn Has Been Squeezed Out.

< p > here the world is < a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > a target= "_blank" href= "_blank".

< /p >

< p > national rules for direct subsidy will be announced soon, and the market is highly concerned.

Recently, according to the investigation of textile enterprises in Shandong, Hebei, Henan and other places to understand their current situation and future plans, the following are the following: < /p >

< p > first, the focus of domestic cotton yarn prices has been greatly reduced.

In the 1-7 month of 2014, the focus of domestic cotton yarn prices dropped sharply. The market demand for products was backward, and the cost of raw material purchasing was the main reason for the decline of < a href= "//www.sjfzxm.com/news/index_s.asp > cotton yarn price < /a >.

In July 15th, a person in charge of an enterprise in Weifang, Shandong said that the price of C32, JC32 and JC60 in the middle of July 2014 dropped by 300 yuan / ton, 500 yuan / ton, 4000 yuan / ton respectively, to 25200 yuan / ton, 28000 yuan / ton, 33800 yuan / ton, respectively, 1.18%, 1.74%, and 1.06%. respectively. It is understood that the average area of the blended yarn for pure cotton yarn increased in 2014 2014, and the import yarn impacted the low and medium yarn Market of China.

During the first half of this year, the cotton reserve price dropped from 18000 yuan / ton to 17250 yuan / ton, and the processing cost of cotton yarn decreased accordingly, and the market price decreased in the same direction.

< /p >

< p > Second, the mainstream cotton mill operating rate continued to decline.

According to some enterprises in Shandong and Hebei, the average operating rate of cotton mills above the the Yellow River River Basin in the first half of 2014 was only about 6 percentage points, a decrease of nearly 10 percentage points over the second half of 2013, and a sharp decrease of nearly 15 percentage points compared with the first half of 2013.

A person in charge of an enterprise in Shijiazhuang, Hebei, said that in 2014 and March, because of the unclear policy of the upstream market of cotton yarn, the local textile enterprises had a strong wait-and-see mentality, and started more cautiously. The operating rate was only less than 5-6 percent in 2.

After the adjustment of the policy of dumping and storage in April, the rate of operation began to pick up slowly. But after entering June, the a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > the industry off-season is coming, the operating rate has dropped, and the market is expected to continue to decline after the peak season.

< /p >

< p > Third, the mainstream spinning mill maintained its deficit.

It is understood that in the first half of 2014, the mainstream market of pure cotton yarn was in a state of deficit.

In July 15th, an enterprise in Weifang, Shandong, reflected that their enterprises mainly produced C21, 32, 40, JC32 and 40. The quotations were: 24200 yuan / ton, 25000 yuan / ton, 27000 yuan / ton, 28100 yuan / ton, 29300 yuan / ton. According to the cost accounting, the spinning profit is currently at 400-450 yuan / ton.

But comprehensive calculation is not a loss.

The company official said that the average loss of their pure cotton yarn in the first half of the year was 1226.8 yuan / ton.

Because of the cancellation of the temporary purchase and storage policy this year, and the dumping and storage of raw materials, the price of raw lint has dropped sharply, and the demand for downstream market is not good. The price of cotton yarn has been correspondingly reduced. Cotton spinning processing cotton yarn is basically in a state of loss.

< /p >

< p > Fourth, 2014 market outlook in the second half.

The market of cotton yarn in the second half of 2014 will probably change with the ups and downs of cotton prices.

Due to the high spot stock of cotton, the pressure of stock pressure is going to force the spot price to continue to decline. < a href= "//www.sjfzxm.com/news/index_c.asp" > spinning < /a > cost will drop sharply.

In view of the future cotton space is full of imagination, the price track of domestic cotton yarn will also be downward.

Taking the high C32 branch as an example, it is estimated that the price of cotton yarn will be reduced by at least 200 yuan per ton or more by the end of August.

The price difference between blended yarn and pure cotton yarn will also be reduced by 200-500 yuan / ton, and the cotton yarn market will still maintain a high price of pure cotton yarn and low price of blended yarn.

< /p >