Market Analysis: Cotton Yarn Fabric Demand Or Cooling After The Spring Festival

 

At present, what factors affect and restrict cotton mills and middlemen to purchase large quantities of medium and high-quality cotton? It can be summarized as follows:

 

1、 Xinguan epidemic is not only out of control again in Europe, America, South Korea and Japan, but also in some parts of China. Textile and clothing enterprises and consumer terminals are worried about receiving orders and delivery in the first half of 2021.

 

2、 Since December, cotton yarn prices have risen sharply, but the price rise of grey cloth, fabric and clothing is not smooth, and the pressure may appear in the second quarter.

 

3、 The industry is worried that with the "retaliatory" recovery of textile and clothing domestic and export sales from October to December 2020, which will lead to the overdraft of global consumption capacity, and the uncertainty of the epidemic development in the first half of 2021, and the demand for cotton yarn, grey cloth and fabrics after the spring Festival or periodic oscillation cooling.

 

4、 With the epidemic situation in India, Bangladesh, Vietnam and other countries under control, production, transportation, export and trade continued to recover, textile and clothing brands and retailers' orders from Europe, the United States, Japan and other countries are speeding up the outflow of orders from China, while the imports of cotton yarn and grey cloth in China have stabilized at a high level.

 

According to customs statistics, in 2020, China imported 1.9 million tons of cotton yarn, a year-on-year decrease of 2.7%; however, from September to December 2020, the import of cotton yarn was 700000 tons, with a year-on-year increase of 11.1%, so the situation of domestic yarn is more delicate.