Yarn Prices Rose Or "Empty Cheque".

After the Spring Festival, the outbreak of new crown virus pneumonia continued, while the yarn went against the market. According to feedback from some enterprises in Shandong, Hebei and Jiangsu and Zhejiang provinces, less than a month since February 10th, the domestic conventional yarn has risen by 200-400 yuan / ton, and individual high and high count combed yarn has risen by nearly 1000 yuan / ton.

However, with the gradual control of the epidemic, this week, the yarn showed an upward trend of fatigue. Why? According to the market introduction, the main reasons are as follows:

First, the downstream start-up rate has increased, and the market supply has increased. With the acceleration of resumption of production and rehabilitation in addition to Hubei and Wuhan, the start-up rate of textile enterprises has gradually increased and market supply has increased. In March 5th, the head of a medium-sized textile enterprise in Dezhou, Shandong, said that the factory mainly produces 21S, 32S and combed 32S, and its capacity has recovered about 50%. The inventory of finished goods is steadily increasing due to the reasons of transportation capacity and orders. The rise in inventory caused by the increase in start-up rate has become a "stumbling block" for price rise. In addition, in recent years, the government has introduced a number of tax exemption and fee reduction policies to encourage enterprises to resume production and resume production capacity as soon as possible. The effect is obvious, but because the business system has not yet fully recovered, the enterprises that have made rapid progress in production have a bigger future.

The two is that the grey cloth rises temporarily. 2 most of the grey cloth market has risen rapidly since the middle of last month. According to the feedback from traders in Shengze, affected by the epidemic, the capacity of weaving enterprises was low after a year, resulting in a shortage of grey cloth. In particular, some best-selling varieties, such as imitation silk, T400 and so on, many traders have hoarding goods. Data show that since mid February, most categories of grey fabrics rose by 0.2-0.4 yuan / m, and individual gains were even higher. The rise of grey cloth directly promotes the rise of yarn. However, with the recent increase in the production capacity of grey fabrics, the supply and demand gradually keep up. The rise of grey fabrics has shown signs of weakness, and even some of the weaving mills are selling at a reduced price, which brings great pressure to the yarn.

Three, the lack of orders is the greatest resistance to yarn rising. According to many traders in Shandong, Hebei and other places, the rise in yarn was mostly "empty" and the actual turnover was very small. Recently, textile enterprises have not received the order very well. Large factories still have a small number of new ones. At the same time, affected by the spread of the epidemic in the world, the domestic and international cotton prices fluctuate greatly, so that the yarn quotation of enterprises is lost. In March 5th, the global epidemic became more and more serious. Terminal consumption was hit hard. Many international orders were cancelled and destroyed. It is expected that the order of textile enterprises will continue to decrease in the near future.

To sum up, although the domestic textile enterprises return to work to reach more than 95%, but because of less orders and high inventory pressure, most textile mills can not achieve full load production. Under the pattern of oversupply, the resistance of yarn rises is heavy, and there is a recent risk of callback.