Recent cotton prices have fallen slightly, although it has entered the traditional production season, downstream orders are slightly better than the previous period, but the characteristics of the peak season is not obvious, and the cotton mill raw material procurement is still relatively cautious. Although the "gold nine silver ten" foreign trade, domestic demand orders have improved to a certain extent compared with July and August, but it is still significantly lower than the industry's expectations, especially cotton bedding, labor insurance supplies, denim, high-grade T-shirts and shirts and other regular orders fell 30-40% year-on-year, consumer terminal confidence recovery still needs a process.

The downstream textile end feedback peak season is not prosperous

The rebound in cotton prices has been weak

The low production of US cotton constitutes support for ICE cotton, but the export of US cotton is still poor, making ICE cotton lack of upward momentum, the market continues to pay attention to China's import demand, the recent ICE cotton mainly follows Zheng cotton futures.

On the other hand, at this stage, the market continues to wait for the new cotton listing, and the industry's expectations for the seed cotton purchase price will not be too low. At present, seed cotton in the mainland is sporadically listed, but there is no quantity; "Gold nine silver ten" consumption season improvement is limited, textile enterprises to purchase raw materials mostly wait-and-see, downstream orders have not improved significantly. In addition, the current yarn spot processing profit is still in a state of loss, and the reserve cotton continues to be put in. The Federal Reserve is about to hold an interest rate meeting, and before the National Day, the exchange adjusted the rise and fall board, the market risk sentiment tends to be cautious, and the cotton price rebound has been weak. It is expected that the main contract of Zheng cotton will remain at 16500-17900 yuan in the near future.

Recently, as the cotton price has stabilized at more than 17,000 yuan/ton, some companies have reported a slight improvement in orders, but there are also companies feedback downstream due to expectations that cotton prices will continue to fall, as well as the impact of traders to dump goods, new orders have decreased significantly. At present, the biggest expectation of textile enterprises is that the price of cotton is stable, and the psychological expectation price is 16000-17000 yuan/ton, and the stability of raw materials is conducive to the active order of enterprises and the downstream link. At present, most of the spinning enterprises are still in a state of loss, and the cost of spot procurement of cotton by enterprises is near 18,500 yuan/ton.

At present, the market's expectations for the peak season have deteriorated, although enterprises generally have certain expectations for "silver ten", but the short-term downstream pressure to warehouse, as well as the limited degree of improvement in terminal consumption, have made it difficult for the market to form a consistent "strong expectations".

Domestic and foreign trade orders are increasing

Recent downstream export inquiries and orders have increased, this week each series of yarn shipments have increased, differentiated orders have gradually increased. Among them, the number of differentiated yarn purchases accounted for 25% of the total purchase, an increase of 1 percentage point from last week. The main varieties are Lyocell cotton blended yarn, Modal/cotton blended yarn, acrylic/cotton blended yarn and acetic acid blended yarn. The quantity of sampling inquiries continues to increase, and the order of the spinning machine is tight in about a month. New season orders began to order production, acrylic fiber heating orders increased significantly, but has not reached the same period in previous years. Domestic sales account for the main body, and the actual orders have been promoted successively. Due to the increase in the cost of yarn grey cloth caused by the rise in raw material prices, the recent price communication is extremely difficult. Most factory orders in the dyeing factory are still insufficient, and domestic sales are preparing goods in advance.

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