According to the Commodity Market Analysis System of Shengyi Society, the cotton yarn market has been running weakly this week, and cotton prices continue to decline, with cotton yarn prices falling along with cotton prices. As of March 7th, the reference spot price for 21S pure cotton ring spinning in Shandong Province, China is around 22600 yuan/ton, unchanged from last week; The spot reference price for 32S pure cotton ring spinning is around 24100 yuan/ton, unchanged from last week.

Market Overview: As we enter March, the textile market continues to be sluggish and there has been no peak season. Some textile companies have slightly reduced their orders compared to the previous period. Currently, textile companies have slightly increased their production, and yarn mills have accumulated inventory. Downstream fabric factories have limited orders and are basically purchasing on demand. The market has a strong wait-and-see attitude, coupled with the decline in cotton prices this week, some textile companies have lowered prices to promote orders.

Startup improvement: This week, the startup rate of textile enterprises has slightly increased. Currently, about 90% of factories in Xinjiang are operating, while more than 70-80% are operating in mainland China. The operating situation is good. As of March 6th, the startup load of mainstream textile enterprises is 76.2%, with a month on month increase of 2.14%. It is expected that there will be little change in the startup rate next week

High inventory: This week, the finished product inventory of textile enterprises has slightly decreased, and the limited number of new orders from textile enterprises is still mainly based on pre shipment orders. The overall textile market is sluggish, and there is no peak season phenomenon. Some textile enterprises have started to accumulate inventory. As of March 6th, the yarn inventory of textile enterprises in major regions was 37.2 days, with a week on week decrease of 1.33%. It is expected that inventory may increase next week.

Raw material volatility: ICE US cotton fluctuated and fell within the week, the macro situation escalated, the market was concerned about future demand, and the pessimistic sentiment led to a decline in the market. The imposition of tariffs again resulted in insufficient follow-up orders from textile companies, and the beginning of the gold, silver, and fourth periods fell short of expectations. It is expected that the cotton market will experience a wide range of fluctuations in the near future.

Weak demand: The overall atmosphere of the cotton fabric market is basically the same as last week. The increase in clothing orders is average, with slightly better performance in orders for coarse and thick fabrics. However, there are few orders for export, and strict traceability requirements are required. The home textile orders are relatively good, and the production entities are mainly based on regular export orders. The production and sales of the textile factory are maintained, and inventory has slightly decreased. Due to the scarcity of new orders, weaving factories tend to be cautious.

Market forecast: Currently, the recovery of terminal consumption is weak and orders are scarce. Profit is in an inverted state, and the pure cotton yarn market is facing a dual dilemma of high cost and low demand, coupled with uncertainty in trade policies and weak market support. In the short term, if the orders during the peak sales season of “gold, silver, and fourth” do not improve, cotton yarn prices are likely to continue to decline.