Will heavy rains in Henan cause the price of raw materials for cotton chiffon to skyrocket

Will heavy rains in Henan cause the price of raw materials for cotton chiffon to skyrocket?

In July 2021, a large-scale heavy rainfall in Henan affects the hearts of the people across the country. At the same time, as Henan is a major cotton textile province in China, whether heavy rains will have a significant impact on the textile industry has also attracted much attention.

According to a reporter from the Cailian News Agency, the industry has learned that the heavy rain in Henan currently has limited impact on the production of main raw materials in the cotton textile industry, but logistics and transportation are affected to a certain extent. As the rain gradually decreases, subsequent production and transportation may gradually return to normal.

According to the information obtained by reporters from the Financial Association, Henan cotton spinning spindles are mainly concentrated in Kaifeng, Shangqiu, Nanyang, Xinxiang, Jiaozuo, and Pingdingshan. Among them, Xinye in Nanyang is a famous cotton textile city in China. Its products are mainly pure cotton yarns, mostly in 40S and 60S counts. Henan\'s rayon yarn production enterprises are concentrated in Xinxiang, and their products are mainly ring-spun rayon yarn and strands.

A person in the cotton industry told a reporter from the Financial Association that Henan is one of the top three cotton spinning bases in the country. At present, most of the textile enterprises are concentrated in towns and villages, but the logistics operation is not affected. Slightly restricted.

A reporter from the Cailian News Agency also learned from some weaving factories in Zhoukou, Zhumadian and other places that the factories continue to operate according to orders, and the replenishment has not been affected for the time being.

The data shows that there is no obvious fluctuation in the spot transaction price of cotton yarn today, and the offer price of C32S is around 26,000 yuan/ton.

The above-mentioned people in the cotton industry told reporters from the Financial Association that the amount of cotton planted and processed in Henan is relatively small, and trade and storage are relatively concentrated. The number of cotton planting and spinning enterprises in Zhengzhou, which is most severely affected by the rainstorm, is not large. So far, there has been no flooding or damage to the local cotton warehouse. Subsequent flood discharge, logistics and transportation will have an impact, but as the weather improves, the impact will not last long. Moreover, the actual transaction volume of domestically produced cotton is not large at present. Due to the maintenance and high position of the raw material inventory of the spinning mill, the urgent shipment volume is also limited.

A staff member of Xinxiang Chemical Fiber, a leading spandex enterprise, told a reporter from the Financial Association: "We have taken good precautions in advance. At present, production is normal, and transportation has not been significantly affected. Due to the forecast, there is still rain, and the future is still uncertain. "

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The impact of heavy rain on the industry and cotton chiffon raw material prices

Tracking data from the China Cotton Textile Industry Association (hereinafter referred to as the China Cotton Industry Association) shows that June 2021 is the traditional off-season of the industry, textile enterprises have acceptable orders, the market transaction price of cotton chiffon is relatively strong, and the overall performance of the yarn market is better than that of grey fabrics. , The boot rate remains high.

Compared with May, in June, the purchase and consumption of raw materials for cotton chiffon of cotton textile enterprises increased, and the inventory of raw materials for cotton chiffon decreased; yarn production and sales increased, and inventories decreased; grey cloth production increased, sales decreased, and inventories increased.

The cotton chiffon raw material procurement and inventory

In June, the purchase of raw materials for tracking companies\' cotton chiffon increased by 4.55% from the previous month, and the purchase of raw cotton increased by 7.08% from the previous month. Among them, the purchase of imported cotton decreased by 14.15% from the previous month; the purchase of non-cotton fiber increased by 0.65% from the previous month. With the support of orders, textile companies just need to stock more.

From the perspective of cotton chiffon raw material prices, domestic cotton prices fluctuated widely in June. The government repeatedly reminded the risk of excessively rapid rise in commodity prices, and introduced a number of measures to ensure supply and stabilize prices. Cotton prices stopped rising and stabilized, while non-cotton fiber prices rose slightly. . On June 30, the main contract of Zheng Cotton Futures was 16,060 yuan/ton, an increase of 585 yuan/ton from the previous month; China’s domestic standard cotton price was 16,460 yuan/ton, an increase of 475 yuan/ton from the previous month; the international cotton price A index was 96.7 cents/lb , A month-on-month increase of 7.0 cents/lb, discounted by a 1% tariff price of 15,362 yuan/ton, the price difference between internal and external cotton is 1,098 yuan/ton, and the price difference is reduced by about 527 yuan/ton from the previous month. In terms of non-cotton fibers, the price of viscose staple fiber was basically stable in June. On June 30, the price was 12710 yuan/ton, an increase of 110 yuan/ton from the previous month; polyester staple fiber rose slightly, and the price was 7010 yuan/ton on June 30. The month-on-month increase was 265 yuan/ton.

The cotton chiffon raw material consumption and inventory

Tracking data shows that the consumption of raw materials for the cotton chiffon of cotton textile enterprises increased by 2.84% month-on-month, of which raw cotton consumption increased by 2.76% month-on-month, and non-cotton fiber consumption increased by 2.99% month-on-month. As of the end of June, raw material inventory fell 4.54% month-on-month and increased 12.18% year-on-year. Among them, raw cotton inventory decreased by 5.24% month-on-month and 12.64% year-on-year; non-cotton fiber inventory decreased by 2.62% month-on-month and increased by 10.99% year-on-year.

The cotton chiffon production status

Tracking data shows that in the first and second quarters, the output of cotton textile enterprises\' cotton chiffon increased by 0.21% and 7.47% respectively from the previous quarter, and by 20.12% and 9.52% respectively year-on-year. In June, the order of textile enterprises\' cotton chiffon was acceptable, and some enterprises\' orders were scheduled to September, and the equipment utilization rate remained at a relatively high level.

The cotton chiffon sales and inventory

Tracking data shows that the sales volume of cotton chiffon in May increased by 4.45% month-on-month, and the sales volume of cotton chiffon in June decreased by 1.48% month-on-month. The overall performance of the cotton chiffon market is relatively good, the inventory is low, the purchase and sales of the grey cloth market have weakened, and the inventory has risen.

In terms of prices, cotton prices have risen, cotton chiffon prices have basically remained stable, and the profit margins of cotton textile enterprises have narrowed. On June 30, the price of 32 pure cotton carded yarn increased by 20 yuan/ton from the previous month, the price of 30 pure viscose yarn fell by 1,100 yuan/ton from the previous month, and the price of 32 pure polyester yarn increased by 170 yuan/ton from the previous month. The price of grey fabrics fell. On June 30, the cotton grey fabric 32*32 130*70 2/1 47" twill was 5.97 yuan/meter, down 0.03 yuan/meter from the previous month.

In terms of inventory, as of the end of June, yarn inventory decreased by 0.52% month-on-month, and cloth inventory increased by 3.26% month-on-month. In June, the yarn market was purchased and sold smoothly. The sales volume of conventional varieties in the grey cloth market was lower than that in the previous period, and the inventory had accumulated. As a whole, the company\'s yarn and cloth inventory was controlled within one month.

The cotton chiffon supplier

REFINEFABRICS is a professional one-stop fine cotton fabrics solution for apparel, bedding, clothes, T-shirts, and other fashion clothing manufacturers. Having been supplying all kinds of fine cotton fabrics for over 10 years, REFINEFABRICS provides high quality, durable and beautiful cotton fabrics from Refine fabrics. If you have any needs, welcome to contact us via: sales@refinefabrics.com

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