Cotton Yarn Prices Down, The Future Is Not Optimistic!

Judging from the current operating conditions of textile enterprises, due to the sharp rise of cotton price and cotton yarn price in October, the loss of processing profit of textile enterprises has been greatly narrowed. At present, the loss is about 500 yuan / ton. Based on the cotton inventory 20 days ago, the processing profit is still positive, and in extreme cases, it has reached 2500 yuan. However, as we all know, before October, the overall market was poor, and textile enterprises themselves were in the process of de stocking. Naturally, cotton did not have a lot of inventory. In mid September, there was a small wave of procurement, but it was still near a relatively low level. Therefore, only a small number of enterprises were destined to receive dividends in this wave of market. Most enterprises could barely maintain cash flow, and their life was not very good.

Source: Shanghai cotton transportation center, cloth factory, China Textile News, chemical fiber headlines