Price trend

According to the SunSirs' commodity market analysis system, yarn prices remained generally stable last week. Inland textile mills faced insufficient orders and increased inventory, leading to some price concessions. Large-scale factories in Xinjiang temporarily had no inventory pressure and maintain high operating rates, while downstream fabric mills were operating at lower rates and ere significantly pressuring for lower prices. As of November 21st, the spot price of 21S cotton ring-spun yarn in Shandong was around 21,900 RMB/ton, unchanged from the week before last; the spot price of 32S cotton ring-spun yarn was around 23,175 RMB/ton, down 25 RMB/ton from the week before last.

Market Analysis

Last week, large-scale cotton mills in Xinjiang maintained a decent order intake, with operating rates remaining at 90%. Inquiries and shipments of cotton C32 and C40 yarn remained stable, and companies faced low inventory pressure. However, in the Guangdong and Jiangsu-Zhejiang markets, pre-sales of Xinjiang-produced C40S and above high-count compact Siro-spun yarn increased, impacting orders for similar high-count yarns from inland textile companies. Inland textile companies faced limited orders, resulting in a slight accumulation of finished product inventory, with some companies offering discounts to secure deals. Coupled with low cotton prices, this suppressed cotton yarn prices, and prices are expected to fluctuate in the short term.

Operating rates: Although it's the off-season, orders within Xinjiang were still acceptable, with operating rates generally maintained at around 90%. Operating rates in other parts of China were at 60-70%, and there was no significant inventory pressure by November 21. As of November 20th, the operating rate of textile mills in major regions was 65.5%, a decrease of 0.15% from the previous week and lower than the same period last year.

Inventory Situation: Despite the off-season in Xinjiang, sales were brisk, and textile mills in inland areas were experiencing slight inventory buildup, but there was temporarily no inventory pressure. Large Xinjiang mills had approximately 35 days' worth of finished yarn inventory, while inland mills maintain 11-15 days' worth. As of November 20th, yarn inventory at major textile mills in key regions was 30.12 days, unchanged from the previous week.

On the cost side: The cotton market fluctuated throughout the week. Trading activity in the spot market was weak recently, with many transactions occurring at fixed prices. Downstream restocking intentions were weak, with existing orders being fulfilled. As of November 21, the home textile market was active, while the apparel market was generally weak. The cotton market is expected to fluctuate slightly downwards in the short term; attention should be paid to downstream order activity.

On the demand side: Downstream weaving operations remained at a low level. As of November 20, the cotton textile operating rate was 46.34%, unchanged from the previous month.

Market Forecast:

The cotton yarn market is expected to continue its volatile trend in the short term. As the textile market enters the off-season, downstream weaving operations remain at a low level, and raw material procurement is cautious. Yarn prices will be adjusted according to the actual situation of yarn mills, with little overall change.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.