Recently, the key project for the textile industry upgrade of Hubei Jinhengchang Textile, with a total investment of 1.5 billion yuan, has entered the final sprint phase. Installation work is underway for 27 vortex spinning machines and 230 air-jet looms. It is reported that the project is expected to achieve full production capacity by mid-April this year. The project focuses on the fields of high-end spinning and intelligent weaving. Upon completion, it will have a daily spinning capacity of 40 tons, with an annual spinning output reaching 14,400 tons. After reaching full production, the annual output value of the spinning sector is projected to reach 200 million yuan, while the weaving sector is expected to generate an annual output value of approximately 150 million yuan. The combined annual output value of the two sectors is set to exceed 350 million yuan.

PriceSeek analysis of cotton yarn, long-short score: -1.5
The project increases cotton yarn production capacity, with an annual output of 14,400 tons. The rise in supply may lead to an oversupply in the spot market, putting downward pressure on prices. Combined with futures data, such as the closing price of the 2605 contract at 20,405 yuan/ton, down by 205 yuan, and a decrease in open interest, it reflects bearish market sentiment, reinforcing the downward trend in futures prices.

Polyester yarn, long-short score: -1
The project involves polyester yarn production, and the expansion of capacity will increase market supply. Without a corresponding growth in demand, this will exert bearish pressure on spot prices, potentially leading to a moderate decline.