Since June, the market price of Zheng Cotton CF2009 contract has exceeded the 10,000 mark. Domestic lint cotton, both basis quotations and fixed-price resources, have increased accordingly. Cotton processing enterprises and traders with low hedging ratios have expressed that pressure has eased and confidence has recovered. .
At present, the quotations of “Double 29″ hand-picked cotton in mainland warehouses such as Jiangsu, Henan, Shandong and other mainland warehouses have generally reached 12,600-12,900 yuan/ton (a few cotton companies have quoted prices reaching around 13,000 yuan/ton); ” The quotation price of double 28″ machine-picked cotton is 12,000-12,300 yuan/ton. First, the price difference between lint cotton of different qualities continues to widen due to cotton companies raising their basis; second, spot basis transactions are deserted, and textile companies and middlemen prefer “fixed price” purchases; third, machine-picked cotton in southern Xinjiang has less impurities and The recovery trend is low, which attracts more attention from mainland cotton textile enterprises.
Regarding the recent general increase in cotton prices by 300-500 yuan/ton, most cotton textile mills and garment companies have said that it is difficult to digest and want to boost downstream gauze prices through the increase in cotton, polyester staple fiber and other raw materials. There is little hope for an increase, and there is concern that the industry’s “intestinal obstruction” problem will once again form. Therefore, in the past half month, the quotations of cotton yarn factory and various light textile markets have been stabilizing, and price increases are extremely cautious.
It is understood that recently some small weaving factories and clothing companies in Hebei, Shandong and other places have chosen to reduce production or take holidays due to a lack of processing orders and the inability to maintain normal production. A yarn mill in Dezhou, Shandong said that since May, the main shipments have been C21S to C40S carded yarn, and the net profit is only enough to maintain production, while the higher value-added JC40 to JC80S combed yarn and C50S or above carded yarn Inquiry, Shipments are relatively scarce (the factory has stopped production and orders for cotton yarn with a count of 50S and above in mid-June), and it is difficult for raw materials to drive up prices and sales of downstream gauze and clothing.
The domestic sales market has started to warm up since mid-March. Autumn and winter orders have now entered a state of delivery and replenishment. The off-season from June to August is unavoidable, and export orders for high-count yarns and high-count and high-density gray fabrics have recovered. Significantly lower than expected, small single textile enterprises with “short-term, flat and fast” profits are lower. From July to August, cash flow in cotton textile enterprises was generally tight. In order to reduce risks and tide over the difficulties, raw materials were purchased as needed, and measures such as changing the second shift to one, taking turns to start up the front and rear lanes, and even reducing staff were adopted. </p
