Analysis Of The Reasons For The Reduction Of Cotton Yarn In Large Spinning Enterprises

A large scale in Shandong recently Spinning cotton yarn Cut the price again, combed cotton yarn. Price fall Around 1000, the factory's JC40S cash containing tickets came out of the factory near 32500, and heard about 100 tons or so, it could enjoy preferential policies again. The profit margin was as high as 1500 yuan / ton. Under the preferential policy, the price of JC40S was up to 30950, while JC32S was 29500. Moreover, it is understood that from the practical level, small orders can also be concentrated together to get goods, and ultimately still enjoy preferential policies, but the need to coordinate the delivery time, generally takes more than a week's time cycle.

Although the recent price cutting of market textile enterprises is endless, the price adjustment of large textile enterprises has aroused a lot of attention.

　　 First of all, from the point of view of reducing the price of yarn, this is mainly for combed yarn. Generally speaking, combed cotton yarn is used to make shirts or knitted thermal underwear. For this purpose, the demand for combed yarn is mostly in the first half of the normal season, and the sale of pre Combed Yarns also proves this. Therefore, most spinning enterprises will concentrate on the production of combed cotton yarn in the first half of the year. However, with the passage of time, the difficulty of combing yarn is increasing. Judging from the recent feedback from the market, the sales of combed cotton yarn has dropped significantly. At present, only some enterprises have made orders for some old customers, most of which are not smooth. The price of this large textile enterprise is only for combed yarn, and other specifications of cotton yarn have no indication of adjustment, which in a way has great relationship with the advent of combed yarn "off-season".

　 Secondly, from the inventory point of view, at present, the spinning enterprises have greater production pressure. Under the background of this year's overall market slack, the operation of the company is not ideal. It is understood that this year the overall start-up level of the enterprise has remained at around 60%, and there is news that the plant has been phasing out backward production capacity in recent years, so the actual start-up of enterprises may be less than 60%. At the same time, as the external market continues to deteriorate, the difficulty of export export is also gradually increasing. Since June, the factory has declined significantly. Cotton yarn has always been fiercely competitive in the domestic market, and because the yarn price of the factory has been much higher than the mainstream price, shipments are hardly optimistic. It is understood that at present, the production and marketing of the enterprise is only 6 or even lower. Moreover, because the factory's flagship of medium and low count cotton yarn, even if the boot is insufficient, the daily output of the factory is still amazing. Under the condition of poor production and marketing rate, the stock pressure of the spinning enterprise should not be underestimated. It is reported that the cotton yarn storage capacity of the factory is over, and some of the yarn branches are even directly stacked into the workshop, so it can be seen that the pressure of the enterprises is not small.

　　 Finally, from the time window of price reduction, July is the time window for the semi annual report of listed companies. As a listed company in Hongkong, the semi annual report is also one of the issues that the business operator should consider. If the semi annual data is too "ugly", the company's share price will be impacted, thus affecting the operation of the company. As a result, the company has the pressure to reduce its inventory and withdraw funds and improve its financial position. In addition, the normal year, the end of June and the beginning of July are the time points for the downstream traders to replenishment. Although the large textile enterprises in Jiangsu had already cut prices, the downstream traders did not receive the goods on a large scale. But from the understanding of the situation, there are traders feedback, if the source is good, the price is suitable, we can consider to do a little inventory, until the market is stable, then continue to add. Therefore, the textile enterprises at this time price reduction is not without reason.

Of course, because the textile enterprise has not announced the specific reasons for the price reduction, the above points are only my personal views for reference. At the same time, I would like to remind you that although the recent market price adjustment is constant and the industry confidence is still in the doldrums, textile enterprises should adjust their production and operation with their own business conditions.