Cotton: Textile Enterprises "Difficult To Get Goods" Or Will Ease

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< p > early February, affected by the Spring Festival, domestic a href= "http://www.91se91.com/" target= "_blank" > textile < /a > enterprises were gradually shut down for a holiday, and enthusiasm for raw material procurement declined.

It is understood that after the relatively active stage of dumping and storage, paction rates and paction prices have declined, and the turnover rate has dropped below 20%.

"To a certain extent, this reflects the downturn in the downstream consumption market of cotton."

MEIKO futures analyst Liu Yi said.

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< p > recently, "relevant departments of the government will throw some new cotton from March," the news spread like wildfire in the market.

According to a reporter's investigation, a Hubei reserve store has received relevant departments' notice to sell 2012 new cotton, and preparations are being made.

In this regard, insiders said that if the news is true, cotton spinning enterprises will have more choice space, short-term cotton prices or suppressed.

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< p > after the festival, the turnover of the dumping and storage business started to pick up. The turnover rate was about 36% in February 18th and 19, which was significantly higher than the 20% level before the festival.

It is reported that some large textile enterprises including Wei Qiao textile Limited by Share Ltd have nearly doubled their daily reserves compared with the pre holiday period.

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< p > "national cotton auction is the main purchasing channel for textile enterprises at this stage."

Guo Yinying, the information center of Baiyin cotton industry, said that the spot price of cotton was high and the import quotas had not yet been issued, and the textile enterprises after the holiday started to start one after another. The loan to the account increased the liquidity of the funds, and the yarn sales also improved.

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< p > "most of the cotton thrown out of storage is Chen Mian in 2011."

Guo Yinying said that despite the fact that after the festival, there was a warm-up in the sale of stocks, but there was still plenty of stock in the textile enterprises.

She added that the existing cotton supply is adequate enough to ensure the production of low-end cotton yarn, but the supply and demand situation of high-quality cotton that can meet the high quality cotton yarn production is worrisome, and the supply of related textile enterprises is tight.

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< p > it is understood that the state has collected a large number of high-quality new cotton, "a href=" http://www.91se91.com/news/index_q.asp "> storage" /a "accounted for more than 85% of the total market volume, the remaining high-quality new cotton is in the hands of large textile enterprises, small and medium-sized textile enterprises are more difficult to buy high-quality new cotton from the market.

In order to maintain production needs, some small and medium-sized textile enterprises have to look for high quality cotton sources everywhere. In the paction process, they usually pay about 50% of the goods in advance, and the final payment is settled in about 30 days.

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< p > recently, some sources said that the relevant departments would throw some new cotton from March. The new cotton and Chen cotton will be sold in proportion to 3:7, that is, 30% of the reserve cotton is sold as new cotton and 70% is Chen cotton.

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< p > "if the information is true, it means that the textile enterprises can purchase new cotton with higher quality at the price of less than 1000 yuan / ton below the market price, and the turnover rate will continue to rise."

Guo Yinying said that most of the new cotton used by the textile enterprises was Xinjiang cotton, while Xinjiang cotton was usually purchased only by local textile enterprises in Xinjiang. The mainland textile enterprises could only hope for the opening of Xinjiang cotton in the inland bank so as to obtain more choice space.

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< p > the market also said that the reserve cotton sold in this batch will be allowed to enter the circulation market, which can be used for futures and matching market delivery.

In this regard, Guo Yinying said, if the reserve cotton can be used for futures delivery, will suppress "a href=" http://www.91se91.com/news/index_c.asp "cotton > /a > price return.

"As a trading enterprise, we are also facing the dilemma of" getting goods difficult ", hoping that the cotton reserves will enter the market as soon as possible.

She said.

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