Forecast: The High Cost Of Cotton Is Not Enough To Support The Price Of Cotton Yarn

On December 8, the price of 32S cotton yarn was 30333 yuan / ton, down 2.47% month on month.

The cotton yarn market is stable and downward. At present, the market is mainly composed of small batch high configuration and combed products, lacking of large single support. A single discussion leads to the increase of manufacturers' profits and sales, and the accumulation of cotton yarn enterprises' stock continues. The upstream cotton spot price stabilized after last week's sharp drop. On the 8th, the domestic cotton index was 3128b, with an average price of 21953 yuan / ton. The downstream market did not change much, and the poor demand was still the main problem. In the first quarter of 2022, China's cotton textile, clothing and foreign trade companies expected to list orders lower than expected. The central bank will reduce the reserve rate by 0.5% on the 15th, which is conducive to the confidence in the growth of the cotton textile industry chain and the financing of small and medium-sized textile enterprises.

Forecast: the high cost of cotton is not enough to support the price of cotton yarn. Under the background of the continuous downturn of downstream demand, it is expected that the short-term cotton yarn market will continue to fluctuate downward.