Hot Spots | The textile situation has improved, can cotton prices fall sharply
Exclusive news from China Cotton Network: Zheng cotton prices have continued to fall recently, and the main forceCF1705The contract has dropped to15500yuan/ton or less, but the spot price did not follow. Although low-quality cotton in Xinjiang has been dumped, high-quality cotton resources in the market are still priced at higher prices and are relatively strong.
According to a reporter from China Cotton Network, the situation of downstream fabrics has improved this year, and textile companies are basically taking production orders. A textile company in Hebei said that most companies in Hebei received orders well in 2016, basically consistent with 2015, and the overall production and operation situation was better than the previous two years. However, individual companies are not as good as in 2015, partly because raw material prices have risen too fast and costs have been too high, resulting in reduced profits. At present, the sales situation of enterprises is basically in a normal state. Due to the different production and operation conditions of each enterprise, the cotton yarn inventory turnover period is not the same. Some enterprises have about half a month, some enterprises have about a month, and even some enterprises have zero inventory.
It is reported that the current real estate cotton price in Hebei Province is around 15,500 yuan/ton, and the cotton price in Xinjiang is 16,500-16,700 yuan/ton. Faced with such high cotton costs, what is the profit situation of textile companies? Most local companies said that the profits of their products in 2016 were relatively optimistic, basically maintaining around 1,000 yuan/ton. For example, taking combed 32S as an example, the current finishing cost is 7,500 yuan/ton, the cotton ratio is around 1.25, and the sales price of combed 32S is 27,500 yuan/ton. If the cost of waste is taken into account, the company will still make a profit. However, state-owned spinning mills said that the burden on enterprises is heavy and the profits of their products are now minimal.
When the reserve cotton is released, the cost of cotton for textile companies may further decrease, and the competitiveness of imported yarn and Xinjiang cotton is bound to increase. Even under the situation of high cotton prices, domestic fabric companies have basically achieved a balance between production and sales. If the cost of cotton yarn production drops, it will further stimulate the demand for raw materials. In addition, domestic supply and demand are in a tight balance, and it will be difficult for cotton prices to drop significantly by then. Very difficult.
AAAGFHTRYKUYIU7OUP
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
