Some cotton textile companies have postponed their holidays
Encourage employees to work overtime to catch up on orders before the Spring Festival
Recently, the rebound of Zheng cotton has narrowed, and the bulls and shorts have reached a stalemate. After the main CF2405 contract broke through the 15,500 yuan/ton mark, the confidence of the bulls has declined. Whether it can hold the 15,500-16,000 yuan/ton shock range remains to be seen. However, Zheng Cotton Yarn has started a strong rise. The main CY2405 contract rose from 20,960 yuan/ton to 22,065 yuan/ton in just three trading days. The price difference with Zheng Cotton CF2405 contract widened from about 5,000 yuan/ton to 6,000 yuan/ton. Above yuan/ton, the price difference between the two has gradually been repaired.
Feedback from cotton spinning enterprises in Shandong, Jiangsu, Henan and other places shows that cotton yarn quotations continue to rise slightly, losses in low- and medium-count cotton yarns of 40S and below continue to shrink, and corporate confidence has been restored. Some cotton textile companies that originally planned to take the “Spring Festival holiday” early in mid-January issued notices to postpone the holiday by 7-15 days, encouraging employees to work overtime before the Spring Festival to catch up on orders.
Some cotton trading companies and Xinjiang processing companies reported that with the current prices of cotton and cotton yarn rising simultaneously, the enthusiasm of cotton textile companies and traders for inquiry/purchasing has also continued to pick up, and the progress of cotton sales in warehouses inside and outside Xinjiang has accelerated, especially for medium and high-end products. Quality indicators of machine-picked cotton in Xinjiang.
Since mid-December, most cotton spinning companies have accelerated inventory destocking. At present, the finished product inventory of many companies in Henan, Shandong, Hubei and other places has dropped to less than one month. Cash flow pressure has gradually been eased, and the purchase of cotton and other raw materials has started slowly. At present, the entire industry chain is gradually increasing its expectations for a strong rebound in my country’s cotton consumption in the first half of 2024, and is worried about the accelerated rebound in cotton prices after the holidays and starts procurement in advance. At present, the spot sales price of Xinjiang lint cotton is gradually becoming the same as or even “following” the cost of ginners. Some cotton companies may have adopted the strategy of holding back the market and being reluctant to sell.
The weaving factory is busy taking orders and the holiday is postponed
It is difficult to retain workers at the end of the year
At the beginning of January, some weaving factories issued holiday notices! The textile factory will start the Spring Festival holiday from January 28, and said that employees who can stick to their posts until the 28th will receive a reward of 1,600 yuan.
From the above holiday notice, we can first see that this year’s holiday for weaving factories is not as early as rumored. It is a routine operation for weaving factories to take holidays 10 days in advance. The end-of-month holiday is also the market’s prediction for this year’s Spring Festival holiday, and there is almost no difference.
With just one month left before the Spring Festival, the textile market has entered the year-end closing stage, and when to take the holidays has become a hot topic in the industry! Whether it is weaving manufacturers or traders in the Shengze area, although the holiday notice has not been clearly announced, the holiday time plan has basically been put on the agenda. According to the editor’s understanding, most weaving companies plan to take holidays at the end of January or early February. Although there is no clear notice, they all have disclosed their intention to take holidays.
As early as September and October, due to the sluggish traditional peak season, market participants predicted that weaving factories would have holidays well in advance this year. When it comes to the end of the year, few people mention the issue of early holidays anymore, because today’s market is busy and factories have orders to take, so it is impossible to take early holidays. Although the market has entered the final stage and traders are not smoothly connecting new orders, the gray fabric market is still circulating. Foreign trade companies are receiving orders normally and spot companies are still stocking up. It can be said that the market is very lively.