SunSirs: Cotton Market Continues to be at a High Level, Price of Cotton Yarn Rises again, up 4.27% Month-on-Month and 33.33% Year-on-Year

　　1. Price quotes

　　On the 13th, the price of 32 cotton yarns in Shandong was around 26,833 yuan/ton, up 4.27% month-on-month and 33.33% year-on-year.

　　2. Market analysis

　　On August 13, the average price of China’s cotton index 3128B grade was 17,903 yuan/ton, an increase of 375 yuan/ton from last Friday. With the rise in the cotton market, cotton spinning mills once again raised the price of cotton yarn. The surge in cotton yarn market led to an increase in the production cost of grey fabrics, and textile companies slowed down their purchases and remained on the sidelines. The new crown epidemic has returned, and the return of textile orders to the country has accelerated. With the “Golden Nine” peak season approaching, the market has optimistic expectations for the market outlook, and the confidence of textile enterprises has gradually increased.

　　Since August, the future prices of cotton and cotton yarn have increased significantly. Downstream weaving, fabrics, clothing and foreign trade companies need time to absorb the pressure of rising costs. They have more inquiries for cotton yarn, but the actual delivery has decreased compared with the previous period.

　　3. Downstream industry chain

　　Textile and clothing exports continued to improve this year. The inventory of finished products of textile enterprises has been at a low level over the years, and the profit of spinning mills this year has reached historical highs. The downstream market is generally optimistic about the market outlook. Cotton yarn has risen sharply and will continue to consolidate at a high level in the short term. Downstream fabrics and clothing companies have weak bargaining power. If the demand in the later period falls short of expectations, be wary of the risk of callbacks.