Market Analysis: The Market After The May Day Holiday Is Generally Pessimistic, With More Expectations

 

After the May Day holiday, some market participants have more pessimistic expectations, and the pressure of supply release is greater. The inventory of yarn products of textile enterprises is at a high level in recent three years. The market price competition is fierce, and the overall supply exceeds demand; Xinjiang cotton sales progress is slow, the pressure of hedging plate is greater, this strong atmosphere scared the long mood of bulls, long position reduction, short position increase, pressure is heavy; In addition, the market of downstream textile peak season has not been started yet, the general orders of Guangdong Zhongda market, Lanxi, Keqiao and Nantong markets have generally declined, and the inventory of grey fabric factories is running at a high level. Looking forward to the spinning Market in May, it is expected that cotton yarn prices still have downward space.

By the end of April, cotton inventory discount days of textile enterprises in mainstream areas were 22.4 days, with a month on month decrease of 20.3% and a year-on-year decrease of 48.8%. Affected by the epidemic situation, logistics in some areas fell into a state of suspension, and the storage of cotton warehouse was restricted; Cotton prices are running at a high level, spinning enterprises have great pressure on yarn finished products inventory, spinning profits have been all-round loss, enthusiasm for raw material procurement is not high, as soon as use is used, cotton inventory of textile enterprises is expected to continue to decline in the short term.

As of the end of April, yarn inventory of major regional textile enterprises was 30.6 days, with a month on month increase of 10.1% and a year-on-year increase of 131.8%. The yarn finished product inventory pressure of textile enterprises is high, which is at a high level in recent three years. The market continues to be depressed. In order to reduce the inventory pressure, some textile enterprises have the phenomenon of selling goods, but the effect is general, and the downstream orders are weak. In the market with weak demand and the advent of the off-season, it is expected that the inventory of textile enterprises will increase.