Ji Lu Yu: Yarn Market Continues To Be Weak, Production And Sales Rate Continues To Decline.

Last week (8.5-8.9) learned from the situation that the yarn market performance in Hebei, Shandong and Henan was relatively low. Affected by the low price of raw materials, the overall price and volume of cotton yarn are both weak. The overall market is weak, and many businessmen have subjective wait-and-see mentality. On the other hand, many of the textile enterprises who are in the off-season are in short supply, and are serious enough to make up for the east wall. Shandong textile enterprises feedback, the current two months of the off-season period, their orders are less, the market is unstable, the repayment situation has been disappointing, every month in order to maintain normal production, are in the first cotton purchase, it is not easy to get enough cotton, followed by a high summer electricity charges, and then put together the wages of workers, under the vicious circle, feeling every day for money and worry, let the money pressure suffocated.

In the last week, the market of Lu Yu's yarn in Hebei Province was generally reacted. There was no obvious increase in demand. A factory in Hebei introduced: Although the production and sale rate of the off-season period is obviously declining, the order form of the machine is not enough. It seems that we are worried about the follow up orders, and the gross profit rate in the off-season period is much lower. In the peak season, there are more differentiated orders and higher processing fees. During the off-season, the differentiated orders are gradually decreasing, and the machine can not stop at any time. It can only pick up some conventional varieties of the mainland. The downstream customers are less expensive, the processing fees left to the manufacturers are quite low, and the gross profit margin of the mainland varieties is even negative in the short term. Even so, the individual manufacturer's machine still can't run at full capacity. For the lack of order varieties, we can only temporarily make some stocking stocks on the mainland, but in the face of the risk of cotton price instability, the general manufacturers choose stocking varieties such as polyester cotton and other blended yarns.