In early January, small and medium-sized cotton spinning mills and weaving factories in Guangdong, Jiangsu, Zhejiang, Shandong and other places have been on holiday one after another. The light textile markets in Foshan, Zhongshan and Zhejiang are also about to close. Cotton yarn inquiries and trading volumes have gradually declined. Logistics outages have increased in some areas, and the transportation volume of cotton yarn, gray cloth, fabrics, etc. has declined, and the entire downstream consumer market has entered a holiday rhythm.
A cotton yarn trader in Shaoxing, Zhejiang said that it plans to close on Friday (the 22nd of the twelfth lunar month) and open on the 10th of the first lunar month. The cotton yarn market before the holiday shows three characteristics: First, OE yarn shipments have dropped to a certain extent, and the performance is not as good as C16S-40S ring-spun cotton yarn; secondly, orders for JC32, J40S and carded C60S cotton yarns rebounded weakly, and quotations increased slightly; thirdly, C40S and below count cotton yarns were spun using imported cotton such as US cotton, Brazilian cotton, and Indian cotton. The transaction volume is not as active as Xinjiang cotton yarn.
Cotton enterprises in Xinjiang, Henan and other places have reported that there have been obvious differences between domestic large and medium-sized textile enterprises and small-scale textile enterprises recently. Large traders and textile enterprises are still actively making inquiries and issuing purchase contract invitations, and are willing to replenish their stocks before and after the Spring Festival. For Xinjiang’s cotton resources are in storage. Contracts were signed many years ago and railway shipments will be organized later this year. However, small cotton companies and textile companies have been on holiday one after another and no longer purchase or sell Xinjiang cotton. There is a strong wait-and-see atmosphere before the holiday. Taking into account factors such as pre-holiday shipments, widespread temperature and snowfall across Xinjiang, and expectations for the Zheng cotton CF2305 contract to exceed 15,000 yuan/ton, the quotations of Xinjiang cotton processing companies have significantly reduced, and the entire cotton market has gradually entered a period of stagnation.
Ginning companies in Aksu, Kashgar and other places said that since late December, some large cotton trading companies have placed actual orders to purchase machine-picked cotton in southern Xinjiang. At the same time, they have lowered their procurement targets, focusing on purchasing 3127A/B and strong 26cN/tex. Low to medium quality lint. According to industry analysis, because low-index, low-grade cotton has relatively low premiums or does not meet the conditions for generating warehouse receipts, some processing companies have plans to process and collect payments quickly before and after the Spring Festival, so buyers and sellers can reach a deal quickly.
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