The cotton market has entered a stalemate period with chaotic trading volume
According to reports from some supervision warehouses in Xinjiang, with the pressure on cotton trucking out of Xinjiang gradually easing, the Spring Festival approaching, and the replenishment of raw materials such as cotton nearing the end, purchasing personnel from some fabric factories and operators in the mainland have recently returned one after another, asking for cotton prices, There are signs of cooling when viewing and picking up the goods.
With the completion of the purchasing, sorting and warehousing of lint cotton, mainland workers also bought tickets to return. About 70% of the cotton enterprises in Xinjiang have become deserted. Some manufacturers seized the quotations and sold the remaining 5-15 batches of lint cotton to compete for the Spring Festival. 100% clearance has been completed before and the goods are safe. Since the Zheng period CF1703 and CF1705 contracts fell below 14,700 yuan/ton and 14,800 yuan/ton respectively, mainland cotton companies have bought warehouse receipts from Zheng period. Not only the price has fallen on spot, and use very little capital to determine high-grade cotton capital.
Other US cotton, Uzbek cotton, Indian cotton, etc. will arrive in Hong Kong after the end of December, plus the 2017 The cotton reserve rotation launched on March 6, 2019 had high hopes. Therefore, the intensity and enthusiasm of mainland fabric factories to restock raw materials have greatly disappointed cotton companies. “Buy as you use, and make materials according to orders” is still the basic strategy. A few Kuitun, northern Xinjiang, Machine-picked cotton manufacturers in Tacheng and other places quoted prices as low as 15,000 yuan/ton (gross weight) for packaging and clearance, but there were still not many traders and fabric factories responding, and the entire cotton market entered a stalemate.
Judging from the query, the lint sales progress of cotton finishing companies that borrowed money from the Agricultural Development Bank of China, credit unions, etc. in 2016/17 Relatively quickly, some prefectures and states have achieved about 50% of loans issued by “double knot zero”. However, the sales progress of ginneries that rely on self-raised, own acquisition funds or borrowed from mainland banks is slightly slower. The sales progress of a small number of ginners in Aksu, Korla and other places is less than 35%.
First, since late December, the spot quotation in the regulatory warehouse has been equal to or even lower than the cost of lint cotton by 200-300 yuan/ton. Cotton companies are reluctant to sell. Some manufacturers have obtained liquidity through “pledge” to maintain normalcy. operation; second, the selling price of cotton seeds in Xinjiang has not only fallen by 0.02-0.03 yuan/kg in recent days, but it has also been particularly difficult to ship cotton by-products such as cotton seeds, linters, and sterile seeds. Ginning plants cannot determine the cost of lint in advance, so they can only Forced to stock up on cotton.
Nanjiang platform “Double 28” hand-picked cotton gross weight quotation is 15,200-15,400 yuan/ton, 2128/3128 (non-“Double 28”) grade cotton is around 15,000 yuan/ton, transactions and shipments are not active.
The enthusiasm of textile enterprises in production has been frustrated. Last week, Luohua Polyester Shortage quoted a price of 8,800 yuan/ton, but there was no actual transaction. According to Relevant textile companies said that this week, Sinopec polyester shorts were delivered at 8,650 yuan/ton, and other brands of polyester shorts were delivered at 8,550 yuan/ton, which was slightly lower than last week. The price of Chinese chemical fiber polyester shorts was 6,500 yuan/ton, which was the same as last week.
With the fall in raw material prices, textile companies are looking for a balance between sales and price adjustments. This week, some textile companies Enterprises have successively followed up and adjusted prices. According to relevant textile enterprises, the situation of yarn and thread is slightly better, and sales continue to perform smoothly. Some pure cotton yarns have raised their quotations by 200 yuan per ton, and the sales trend is stable. Affected by the all-round price increase of cotton polyester shorts, The price of polyester-cotton blended chemical fiber fabric yarn has been raised by more than 1,000 yuan, but companies have reported that there is still no profit to be made.
According to textile companies, sales volume must also be taken into consideration when adjusting prices. It is not okay to increase prices but not be able to sell them. , while raising prices, we must ensure sales and complete the quantity to find a balance point. At present, there are many small orders for natural cotton fabrics, and it is difficult to see large orders. Recently, the price of polyester shorts has been rising. Cost pressure is increasing, and it is helpless to increase the quotation.
According to feedback from various textile enterprises, first, the end of the year has arrived, and all enterprises are tightening their financial resources; second, The Spring Festival is approaching, and the market will enter short-term dormancy again; thirdly, after the Spring Festival, reserve cotton will be rotated out immediately. Therefore, the high price of raw materials has lost support. Textile enterprises should operate cautiously at present, and focus on planning for next year.
AAAJH. LK‘PO[IUYUKT
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
