According to the commodity market analysis system of SunSirs, the price trend of the cotton yarn market is stable this week, and the price shows the characteristics of stable and falling.

As of June 6, the spot price of 21S cotton ring spinning in Shandong Province is about 22,165 RMB/ton, down about 50 RMB/ton from last week; the spot price of 32S cotton ring spinning is about 23,725 RMB/ton, down about 50 RMB/ton from last week.

Market overview: The overall cotton yarn market is sluggish this week. Most textile companies are on holiday during the Dragon Boat Festival. New orders after the festival are limited, and a small amount of inventory is accumulated. However, the price of cotton is high, and the cost of textile companies remains high. Textile companies still focus on stabilizing prices on the surface, and there is room for negotiation in actual transactions. Downstream purchasing intentions are cautious, and the overall operating rate remains low. As textile companies continue to accumulate inventory and operating pressure gradually increases, yarn prices are expected to have further room for downward adjustment.

At present, all parties in the market are still mainly on the sidelines, waiting for further clarification of relevant news on tariff policies.

Machine start-up situation: This week, the machine start-up rate of textile enterprises has been slightly reduced. At present, the market is obviously in the off-season. Some small textile enterprises have implemented staggered start-up to reduce inventory pressure, and the machine start-up of large textile enterprises has basically remained stable.

As of June 5, the machine start-up load of textile enterprises in mainstream regions was 74%, a decrease of 0.40% month-on-month.

Inventory situation: New orders of textile enterprises are limited, and downstream traders purchase according to orders. The market digestion is slow. Most textile enterprises have accumulated inventory. Some large factories in Xinjiang have an inventory of about 35 days, and mainland enterprises have an inventory of about 15-22 days.

As of June 5, the yarn inventory of textile enterprises in major regions was 29.7 days, an increase of 1.02% week-on-week.

Cost side: The cotton market as a whole fluctuated and operated weakly during this week. The average price of domestic 3128 lint cotton was 14,573 RMB/ton, a week-on-week decrease of 0.03%. Among them, the price of machine-picked cotton in Xinjiang market was 14,150-14,450 RMB/ton, and the price of local cotton in the mainland was 13,700-14,100 RMB/ton.

Weak demand: Recently, the cotton grey fabric market has weakened due to the off-season and the international situation. Prices have generally adjusted, but there are few transactions. Weaving mills lack confidence in the future market and have a clear weak outlook. At present, weaving mills have fewer orders on the machine, new orders are not available, shipments are slowing down, and grey fabric inventory is accumulating. Weaving mills are not willing to produce under the weak market conditions, and they remain cautious about purchasing cotton yarn.

Forecast for the future market: Overall, the US trade policy is still full of uncertainty, and the market has entered the off-season of demand. Textile companies are generally under pressure and are worried about the sustainability of orders in June and July. The current market demand is weak, yarn destocking is slow, and the hidden price reduction phenomenon in the spot market may continue. The market is still in the bottoming stage of "weak reality and weak expectations". The overall price of cotton yarn is weak. In the future, we need to continue to pay attention to the impact of changes in tariff policies on the increase or decrease of downstream orders.

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