According to feedback from several cotton mills in Jiangsu, Zhejiang, Shandong, Anhui and other places, with the shock and fall of Zheng Mian CF2405 contract since mid-March and the continuous diving of Zheng Mian yarn since the end of February, plus the phenomenon of "late spring cold" in a large number of new orders from weaving mills and cotton mills in coastal areas since mid-March is becoming more and more obvious. In order to reduce the pressure on the warehouse and maintain production, the start-up rate of some manufacturers has gradually returned to 60-70% from 75-85% in late February to mid-March (the start-up rate of some cloth factories such as Foshan Zhangcha, Zhejiang Xiangshan and Lanxi has dropped to about 50%).

In the past week, the ex-factory price of cotton yarn and the price of goods in the textile market have shown a downward trend. Not only has the price of air spinning, which has been poor in production and sales after the Spring Festival, but also the quotation of C40S and above high-count combed/combed yarn (including compact spinning and siro spinning yarn) has continued to decline.

A medium-sized spinning enterprise in Jiangsu said that due to the relatively small size of the differentiated yarn market and the saturation of the supply of blended yarn and new fiber yarn, the medium and low count "big goods" cotton yarn is at an obvious disadvantage in the competition with Xinjiang cotton mills. As the demand for high count combed/combed yarn continues to peak and fall, a large number of mainland spinning enterprises are in an increasingly difficult situation. The company believes that although the upside-down range of Brazilian cotton and Xinjiang cotton in the mainland warehouse was once expanded to 1,000-1,500 yuan/ton under the 1% tariff in February, the ex-factory price of Brazilian cotton, American cotton and Australian cotton is higher than that of Xinjiang cotton and cotton yarn at 1,000-2,000 yuan/ton, so the company's profit performance was fair in February and March with the support of export traceability orders from customers in Guangdong, Zhejiang and other places.

With the main contract of ICE cotton futures approaching 90 cents/pound this week, the import cost of Brazilian cotton under 1% tariff is basically the same as or slightly lower than the quotation of Xinjiang cotton in the mainland warehouse. The profit of spinning with imported cotton and cotton continues to rise. However, considering that the single-order period is only supported until around mid-April, the situation of "profit but no quantity" of traceability list may become more and more prominent, therefore, although the company holds more than 1000 tons of cotton import quota within 1% tariff, it is very cautious in signing contracts to purchase foreign cotton.