From the survey point of view, in July, enterprises in Jiangsu, Zhejiang, Guangdong, Shandong, Henan and other places reflected that orders for bedding, denim, shirts and medium thick grey fabrics were warmed up. Enquiries and purchases of OE yarn and C10S-C32S cotton yarn began to warm up (the port's import of low import cotton yarn also obviously improved).

 

Downstream raw materials such as weaving, clothing and so on are low in stock. In mid May, taking into account the intensification of Sino US trade friction, most cotton mills, weaving mills and garment factories took stock strategy in a timely manner, reducing raw materials and reducing the finished products. Moreover, from the feedback of enterprises, the effect of inventory clearance was obvious, so since the downstream enterprises in July, once they received orders from both inside and outside, they must replenish their raw materials.

 

Comparing domestic and foreign cotton yarn, domestic yarn still has strong competitiveness, and is still the first choice for downstream enterprises. At present, the price of Chinese made C32S yarn in Jiangsu, Zhejiang and Guangdong markets is 21500-21700 yuan / ton (using 30%-50% reserve cotton), while the price of self winding yarn in port, customs clearance, India, Pakistan and Vietnam C32S is generally 21800-22000 yuan / ton, which is higher than that of domestic yarn 200-500 yuan / ton.

 

In addition, with the CY2001 disk price calculation, the cotton yarn period is now upside down to 1200 yuan / ton (obviously higher than cotton), so cotton yarn futures will fall ahead and stabilize in advance.