Long Staple Cotton Continues To Rise After Years

After the Spring Festival holiday, China

Prices continue to rise.

In February 27th, Xinjiang Akesu Awati County ginning factory feedback, after the Spring Festival, enterprises began to sell cotton, and for long staple cotton generally "cover up for sale", the 137 grade long staple cotton uplink price rose to 26900-27000 yuan / ton, 237 level 26300 yuan / ton, 337 level and 336 level were 25500 yuan / ton, 25000 yuan / ton respectively, the overall price level increased by 200-300 yuan / ton before the Spring Festival holiday.

The owner of a ginning factory in Xinjiang said that the rise of long staple cotton had been launched before the Spring Festival holiday.

Manufacturers have raised their quotations and asked for cash settlement. Some of the large cotton ginning factories stopped offering quotations, indicating sales after the Spring Festival holiday.

Now, during the Spring Festival holiday, some Xinjiang ginning plants are going to work one after another, but they still keep up with the price of long staple cotton.

According to the market, the price rises came from some cotton merchants in the mainland and individual ginning plants.

In February 27th, cotton and long staple cotton prices in Shandong, Hebei and other places were quoted at 137 level, 27700-27800 yuan / ton, and some cotton merchants had reported 27900-28000 yuan / ton, up 300 yuan / ton before the Spring Festival holiday, 237 yuan 26800-26900 yuan / ton, 337 26000 yuan / ton.

According to the cotton trader's introduction, the total amount of long staple cotton that has been pferred to the mainland is not large at present. The total inventory of several large cotton traders in the the Yellow River river basin is less than 10 thousand tons. Therefore, cotton traders believe that once the market demand is opened, after the Spring Festival, the long staple cotton will be "Luoyang paper expensive".

According to market analysis, the domestic fine cotton market is weak in the near future, but long staple cotton will be "one of the best."

There are several reasons for this:

First, market supply is once again "urgent".

The market has been controversial about the production of long staple cotton in 2014.

However, judging from the recent situation of ginning plants, most of this year's inventory of ginning mills is lower than that of the same period last year.

A large ginning factory in Awati reflects that only 3500 tons of staple cotton are stored this year, which is far below the level of 7000-8000 tons in previous years, while the stock of other enterprises also has a decrease of 20-30%.

As the boss of the ginning factory has said, the long staple cotton after the Spring Festival is probably "one cotton is hard to find".

Therefore, some market participants believe that the output of domestic long staple cotton in 2014 is at most 3.5-4.0 million tons, far below the expected 50 thousand tons before the Spring Festival.

Second,

Not optimistic.

In 2013/14, imported long staple cotton has the advantage of price and quality, attracting domestic enterprises to purchase in succession.

But this year, the state strictly controlled quotas. As of now, domestic textile enterprises have been able to get 1% quotas within the quota. According to the enterprises, the use of quotas will be more prominent this year, and the limited quotas will be used on the "knife edge".

In addition, the cost of Pima cotton and Ji Zha cotton is relatively high. According to port traders, the price of the United States Pima cotton GC2-2-46, which has customs clearance under 1% customs duty, is also above 28500 yuan / ton, and the price of 27200-27300 kg / kg is higher than that of the cotton.

Cotton has no price advantage.

Third, downstream demand "erupted".

It is generally believed that the task of replenishment of textile enterprises has been postponed to the end of the Spring Festival.

In particular, some high quality yarn producers, such as an enterprise in Binzhou, Shandong, have produced 100% long staple cotton and 80 cotton yarns. This year, they have been produced by single production and the production line is running at full capacity.

At present, raw materials can only last for 12 days, and materials are urgently needed to replenishment.

Manufacturers responsible person said that the recent long staple cotton prices have been rising, they are also "bite teeth" procurement.

It is understood that after the Spring Festival, long staple cotton as the main cotton blending enterprises are looking for resources to purchase everywhere, and the war of long staple cotton resources in the next year is expected to start in early March.

According to a cotton trader in Jiangsu, they have stopped offering quotas and stopped selling. They only sell when prices rise in March.

"Long staple cotton rose to 28500 yuan / ton is not a big problem."

The cotton trader thinks that the long staple cotton will increase at least 600-700 yuan / ton after the Spring Festival.

In line with the cotton trader's view, the market is looking forward to the long boom cotton boom.