China's textile off-season is approaching high textile inventory

Last weekend, the United States released economic data showed that the US consumer confidence index fell sharply, the dollar continued to weaken, but US stocks plummeted, commodities accompanied by decline, ICE cotton prices lower, traders suppressed the price of intraday intraday cotton prices closed overcast . From the historical data point of view, due to the current listing season for new cotton, the supply of pressure on the market, the price will show a downward trend in the near future.

The fall in cotton prices on the outer disk affected domestic cotton prices, and the domestic spot cotton price went down. The domestic spot cotton prices oscillated and declined. The cotton merchants sold positively. The enterprises with large amounts of glutinous cotton quotations were loose, and the enterprises with small amounts of cotton and cotton were still firm. Due to the limited resources and low price, property cotton has remained stable. Xinjiang cotton prices have been reduced, but textile companies are firmly waiting to cast their reserves. Wait and see mood is strong and the market is in a stalemate. In addition, in the past two days, Hubei, Hunan, Anhui and other cotton-producing areas have more rainfall, which is unfavorable to the development of new cotton. The weather in the north maintains fine weather and new cotton grows well.

After entering July, under the influence of factors such as the arrival of the textile off-season, the pressure of policy control, and the continuous weakening of Zhengmian and electronic matching prices, cotton prices rose weakly. Cotton yarn prices in cotton mills and textiles markets in Shandong, Jiangsu, Zhejiang, Henan, etc. are generally reduced by 500-1,000 yuan/ton. With the textile market entering the traditional off-season, textile companies may worry about the situation of China's economy, textiles, and apparel exports in the second half of 2010. Intensified, the price of cotton yarn will be reduced or deepened.

While the production and sales of the domestic cotton spinning market is not satisfactory, the domestic polyester textile market is also facing the same problem. At present, the domestic polyester inventories continue to be high and the market sales rate is not satisfactory. The pressure on the stocks faced by the market is particularly evident on the domestic PTA futures market. Since May of this year, the domestic PTA price has entered an accelerated decline. According to statistics, since the beginning of May of this year, domestic polyester prices have dropped by 1,100 yuan/ton, and polyester chips prices have fallen by 1,000 yuan/ton, a big drop. However, the operating rate of domestic polyester production enterprises did not reduce production capacity, but instead maintained a relatively high level of market utilization rate. As a result, the inventory rate of the entire polyester textile industry chain including raw materials PTA, polyester staple fiber, and polyester filament increased significantly. The market demand can not be followed up in a timely manner, causing the market sales price to fall under pressure.

While high domestic textile stocks put pressure on the market, the market’s anticipation of national reserve deposits has led textile companies to reduce the purchase of textile raw materials from the market and the market demand has decreased. Domestic sellers are eager to ship to make the market supply. As the pressure increases, the price drops.

At present, the domestic economy is facing a problem of declining economic growth in the second half of the year. The economic data of the United States has been performing relatively weakly, and the European debt crisis has not been fundamentally resolved. Domestic inflation factors complicate the state's regulatory situation. All these factors will lead to a drop in domestic textile prices.