SunSirs: Limited Start-up under “Double Reduction + Double Control”, Cotton Yarn Remains Weak

　　1. Price quotes

　　On September 24, the price of 21S cotton yarn was 25,733 yuan/ton, down 1.78% from last Friday.

　　2. Market analysis

　　The cotton yarn market fell, the market demand continued to weaken, and the accumulation of cotton yarn inventory increased. As printing and dyeing plants in Wujiang, Shaoxing, Keqiao, Nantong and other places reduced production and stopped production, and the start-up rate of weaving companies was greatly reduced due to power cuts, the progress of cotton yarn shipments was limited, and the pressure on spot prices increased.

　　The upstream cotton market declined weakly. On September 24, the average price of China’s cotton index of 3128B grade was 17,922 yuan/ton. The amount of new cotton on the market will increase, and the market is concerned about the cost of new cotton.

　　In terms of futures, cotton yarn fluctuated with Zheng Cotton. On the 24th, the settlement price of the main cotton yarn 2201 contract was 24,530 yuan/ton.

　　3. Downstream forecast

　　Due to the sharp rise in the raw material market in the second half of the year, the grey cloth market has been in a weak position and the delivery of goods has been weak. The “dual control” upgrade involves areas such as Shandong, Jiangsu, Zhejiang, Guangdong, Fujian, etc. Textile enterprises, weaving mills, and printing and dyeing factories are restricted from operating, especially the weaving and printing and dyeing factories are more serious. This “double reduction + double control” made the operating rate continue to decline, and the inventory continued to accumulate to a high level. Affected by this, the cotton yarn market remained weak.