On August 5, Zheng cotton began to break after struggling to support the four thousand pass for a week, and from then on, the four thousand will change from the support level to the pressure level, and the downturn in the cotton market can be seen.

A downstream textile enterprise said that now the enterprise orders are few, production is in a state of loss, even if the futures price has fallen below 14,000 yuan/ton, but the spot plus the basis and freight, the cost of cotton for mainland enterprises is still about 15,500 yuan/ton, and now the cotton yarn price is less than 19,500 yuan/ton. The price difference between cotton and cotton yarn has narrowed to less than 5,000 yuan/ton, even Xinjiang spinning enterprises are also in a state of loss. For mainland textile enterprises, the spinning loss margin is larger.

Another textile company believes that this year, Zheng cotton prices show a continuous shock decline state, so that enterprises feel bottomless, which has a very large impact on downstream orders, because the cotton price has not reached the bottom, downstream customers are cautious to place orders, resulting in a period of time since the textile company orders significantly decreased, inventories of finished products continue to accumulate, business pressure. At present, large textile enterprises can still barely support, but small and medium-sized enterprises can only take measures to reduce production. Some enterprises said that this kind of Yin falling cotton prices is like a blunt knife cutting meat, so that it is suffering. In addition, the current price difference between domestic and foreign cotton has been about 2000 yuan/ton, the price advantage of foreign yarn is significant, and the impact on the mainland cotton yarn is also great. Under the double attack of internal and external worries, enterprises can only have high hopes for "gold nine silver ten".

In August, orders for some yarn varieties improved compared with the off-season, but the improvement was not as expected. Less than two months from the new cotton listing, the current cotton growth is good, because there is still a large amount of cotton commercial inventory, it is expected that the opening price of this year is lower than last year, when the new cotton listing cotton prices or will continue to pressure.

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