Recently, the second phase of Hengfan Cotton Textile Co., Ltd. in Wusu City, Xinjiang, a 60,000-spindle open-end spinning production line, officially went into operation. This second phase introduced 10 intelligent open-end spinning machines. The new line, operating at full capacity, has a daily production capacity of 9 tons, primarily producing 40S yarn for the home textile market. After the launch, the company's total production capacity reached 100,000 spindles, with an expected annual output value exceeding 100 million yuan, a 150% increase compared to 2025.
Xinjiang Hengfan Cotton Textile Company's second-phase production line has commenced operations, bringing its total capacity to 100,000 spindles. Annual production value is expected to increase by 150%, with a focus on 40S yarn specifically for the home textile market. This significant increase in supply may put downward pressure on spot prices due to the increased risk of market oversupply. Combined with cotton yarn futures data, recent declines in benchmark contracts such as 2603 (settlement price 20,605 RMB/ton, down 205 RMB/ton) and 2605 (settlement price 20,655 RMB/ton, down 130 RMB/ton), along with decreased open interest, indicate bearish market sentiment. This event is likely to further reinforce the downward trend in futures prices, as capacity expansion exacerbates supply pressure while demand shows no significant improvement.
As an integrated internet platform providing benchmark prices, on January 14th, the benchmark price for 32S cotton yarn, according to SunSirs, was 23,625.00 RMB/ton, an increase of 1.18% compared to the beginning of the month (23,350.00 RMB/ton).
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