Price, inventory and operating rate changes in major mid-to-upstream textile products

Since mid-October, ZCE cotton futures have been fluctuating in the range of 13,800-14,300yuan/mt for about a month and a half, leaving the market directionless. Meanwhile, the downstream yarn and fabric markets in November have also been relatively quiet. After entering the traditional slack season, both trading volume and price are weakening, and confidence is low.

From the table above, it can be seen that, apart from VSF, which has seen a slight increase since the second half of October, and spandex, which remains stable, all other varieties have experienced varying degrees of decline. Although some varieties have shown rebounds, the overall price is gradually decreasing. There are certain common characteristics in the market, and the traditional slack season's features are evident in November. In terms of major textile products, most product inventory is accumulating, as shown in the table below.

From the above table, it is not difficult to find that, recently, except for PSF and acrylic fiber, the inventory of other products in plants shows an increasing trend, particularly for polyester yarn and cotton yarn, where the growth in inventory is quite noticeable. However, most varieties are still within an acceptable range. So, how is the operating rate condition? Since the second half of October, the operating rate performance of most major textile products has remained stable, with no significant decline observed. Only the direct-spun PFY has shown noticeable fluctuations, experiencing a wave of increase followed by a rapid decrease, while the operating rate of cotton fabric has shown a downward trend. This week, cotton yarn operating rate has also seen a slight decrease. Overall, since the second half of October, operating rate is acceptable overall.

From the perspective of prices, inventory, and operating rate performance of the major textile products mentioned above, most mid- to upstream textile products have shown weak performance since the second half of October, with prices trending downward and inventory gradually accumulating, although the operating rate remains manageable. However, while there are commonalities, there are also differences; the adjustment methods, frequencies, and operational habits regarding prices, inventory, and operating rate vary among different products. We will focus on marginal changes.