Last week, the continued depreciation of the renminbi brought a glimmer of hope to the struggling domestic textile industry.

 

"The depreciation of the renminbi may bring a marked boost to the textile industry." The head of a textile enterprise in Henan told reporters that if the depreciation of the RMB can bring the export market, the latter downstream demand may be better. If you can't bring it up, cotton prices will still be difficult to rise.

 

He analyzed the price difference between domestic and foreign low yarn, but after the relative depreciation of the RMB, the price difference will be compressed, and the impact of the outer yarn on the domestic yarn will be weakened accordingly.

 

As far as the Henan area is concerned, although the textile enterprises in the first half of this year have some improvement, most enterprises are not fully loaded. There are textile enterprises to reporters, after mid July, downstream customers difficult to carry goods, the rate of return is low, only close spinning 40 yarn is particularly good sales. But in August, many manufacturers began to produce such products, and sales were no good.

 

It is understood that the low cost of yarn in the domestic low cost of the outer yarn is very large, and the market situation of high yarn is still better, many enterprises will go up to produce high count yarn, and the wind phenomenon is serious.

 

A person in charge of an enterprise in Luohe, Henan, said that some enterprises thought that high count yarn represented high price, and the high count yarn was changed hastily without considering its own equipment. "The equipment originally used to produce low yarn can produce high count yarn, spinning out the yarn high and low quality, the quality can not keep up with the sale of the product, and ultimately it is not worth the loss." The person in charge said.

 

For the later cotton price trend, some companies believe that the next month, cotton prices may appear to be two grade differentiation, low grade cotton demand will not be too good, but the demand for high grade cotton still has a gap. "It is expected that the price of cotton will be about 12000 yuan / ton in the new year, but the price of high grade cotton may reach 13000 yuan / ton or higher. After all, many manufacturers can't find raw materials." The market person said.

 

Although the price of new cotton is generally not high in textile enterprises, some analysts believe that the domestic cotton planting area has been reduced this year, and the super high temperature weather in Xinjiang has caused some cotton buds. In the context of narrowing of domestic and foreign spreads, domestic cotton demand still has growth potential.

 

Last week, the new year's hand picked cotton seed price in Xinjiang Akesu area was 5.8 to 6 yuan / kg, and the lint price was estimated to be over 12500 yuan / ton. However, after picking up cotton pickers in Xinjiang until September 20th, the seven ministries and commissions of the state and Xinjiang will announce the new year's cotton policy details in late 9. Analysts said that the future sale price of machine picked cotton in Xinjiang is likely to be between 12500 and 13000 yuan / ton. The price of the new year is still in the market. If the price of new cotton is too high, for textile enterprises, there will be problems that we want to buy but can not afford. At present, the sales of cotton yarn in Northern Henan are mostly sold first, and then there is money back, but cotton is used in cash. If the downstream consumption is immovable and the price of new cotton stays high, textile enterprises may be faced with the dilemma of "buying cotton without intention and having no money in hand".