Cowboy Market: Foreign Trade Orders Return To Domestic Market In July

In the past month, the spot price of cotton in China has continued to rise, while the price of denim yarn of different specifications has fluctuated, and the price of indigo dye has remained stable; in terms of fabrics, the recovery of European and American markets is weak, and some orders in Indian market have returned, and denim manufacturers have accelerated the layout of domestic market.

1. Raw material Market

Since August, the domestic cotton spot price has continued to rise. On August 21, the domestic spot price of 3128b cotton was 12650 yuan / ton, up 280 yuan / ton compared with the same period of last month.

From the perspective of denim yarn manufacturers, although cotton prices have increased, yarn prices have varied. The price of ring spun pure cotton yarn of 10 tons has increased by 200 yuan / ton compared with last month, while the price of rotor yarn is slightly lower than that of last month. In order to reduce the pressure of inventory, most denim yarn manufacturers have reduced their prices for promotion. At present, the yarn inventory is about 45 days, 5 days less than that of last month.

In terms of dyes, the sales volume of indigo dyes in August was the same as that in July. The current situation of oversupply led to intensified competition among enterprises, and the price remained low. The average ex factory price was about 38500 yuan / ton, which was the lowest since this year.

2. Denim Market

From the production situation, up to now, the capacity utilization rate of key denim enterprises has been maintained at 65%, which is the same as that of last month.

Compared with that in the same period last year, the number of orders placed by Chinese and American enterprises in the same period of last year was lower than that of some European and American brands. It is worth noting that due to the more severe epidemic situation in India at this stage, some orders have returned to China.

From the perspective of domestic market, China's social life and production order continues to improve. On the one hand, enterprises are tapping the potential of domestic demand and actively exploring and developing the domestic market; there are also a few fabric enterprises extending to downstream clothing, directly facing the consumer market, and actively docking with domestic brands, and increasing product development for the domestic market.

3. Future prospects

From the perspective of international market situation, the multiple crises caused by the epidemic situation continue to ferment, and the economic recovery and development are still facing great pressure and challenges; from the domestic market situation, the domestic economic situation is stable and good, and the market consumption potential needs to be further released.

Under the new pattern of domestic large cycle as the main body and domestic and international double cycle economic development, denim enterprises are thinking and exploring new development path, taking domestic demand market as the key direction and accelerating the layout of domestic market.

(the above contents and data are from the sample survey of denim enterprises, for reference only. Please indicate the source: China Cotton Textile Industry Association.)