In September, The Cotton Market Is Gradually Improving.

Enterprises can be seen in September. Finally, in September, the market is just what we are looking forward to, and finally usher in some good signs. It is mainly manifested in the following aspects:

First, the off-season retreat, the peak season is coming. "Golden nine silver ten" is a major feature of the traditional market. This year's "Kim Gu" is also true. First of all, grey fabric business feedback, starting from late August, grey fabric inventory began to rise continuously, at the end of August and the beginning of September. Secondly, the statement of all kinds of dye charges in dyeing factories is rarely seen in the circle of friends recently. According to many people in charge of dyeing factories, the dye fee is not up or down, which brings good benefits to the cost of yarn and grey fabric products, and is also a major performance of the market from the off-season to the peak season.

Two, the expected end of raw material is strong. Since late August, the price of domestic cotton and other textile materials has gone through a sharp decline. At present, the price is expected to hit bottom. First, cotton fell to its lowest level in recent years. As of September 3rd, Zheng cotton CF1909 contract closed 11965 yuan / ton, down 35 yuan / ton, recently around 12000 yuan / ton hovering. The spot market is weaker. On the 3 day, the price of the pick up of the 3128 class machine picked cotton in the inner regulatory warehouse dropped to 12200-12300 yuan / ton, while the 4128/4129 (breaking strength 28cN/tex and above) picked up only 11900-12100 yuan per ton. The "double 29" Southern Xinjiang hand picked cotton price is quoted at 12700-12800 yuan / ton. The industry has said that cotton prices have dropped to a low level in recent years, which is a serious cost upside down. In the short term, cotton will maintain a more stable pattern, which is more advantageous than disadvantages for textile mills. Second, other raw materials will maintain a low level of weakness, but the possibility of a big fall is unlikely. In September 3rd, the price of Jiangsu DESAY polyester fiber staple dropped slightly, and the 1.4D*39mm polyester staple fiber reported 7200 yuan / ton, compared with the beginning of this week, the price changed little, and sales volume was generally large. Many textile mills said that as the upstream raw materials stabilized or played a certain role in supporting the yarn. In particular, the raw material is in the low position, and the future is easy to rise or fall.

Three, part of the textile enterprise efficiency is not as bad as the market reflects. For the whole market, in 2019, many textile factories were losing money and failing to operate. However, many people ignore the other manufacturer, but they are still making good progress. Recently, JL, Jiangsu, Zhejiang and other provinces are mainly spinning market, and some enterprises have improved their orders. According to a factory in Weifang, Shandong, 21S high distribution ring spinning pure cotton yarn was quoted at 20900 yuan / ton, and the current price of 32S high spinning ring pure cotton yarn is 22300 yuan / ton, which is flat compared with the previous week. In addition, on the same day, the 32S polyester yarn of the factory was quoted at 15800 yuan / ton (the factory was opened by ballot), and the price changed little at the beginning of this month. According to some manufacturers, although the recent orders have not been particularly improved, enterprises have already used low cost raw materials, and the yarn profit margins are still good. And some big factories have better operating efficiency and bring some impetus to the market.

To sum up, although there are many pressures on Sino US trade wars, such as mutual tariff increases, devaluation of RMB and environmental protection, many enterprises are also striving to improve, especially in September. Therefore, September and October can be expected.