China'S Cotton Market Is Facing The Double Pressure Of Dumping And Storage And Reducing The Purchasing Power Of Downstream Textile Enterprises.

Since the NDRC confirmed that the reserve cotton was about to leave the warehouse in June, the cotton price trend in the domestic market has been oscillating, putting pressure on the formerly weak market.

For cotton enterprises, Chen cotton became the top priority in 2014, but downstream sales

Not at all.

May statistics show that at present, strict control of textile enterprises.

Inventory is basically maintained for about 2 weeks, and some enterprises are shortened to less than 1 weeks.

In the face of the double pressure of dumping and storage and the reduction of procurement by downstream textile enterprises, the pressure of loan repayment, the pressure of cotton sales and the withdrawal of funds from Xinjiang's cotton processing enterprises and operating enterprises are increasing.

According to the national cotton market monitoring system survey data, as of June 12, 2015, Xinjiang processed 4 million 309 thousand tons of lint and sold 3 million 30 thousand tons of lint, with a sales rate of 70.32%.

The proportion of cotton to be sold is close to 30%, up to about 1000000 tons.

Several cotton enterprises in the south of Xinjiang indicated that they would start to overhaul the machines in July. It is expected that they will purchase the scale in late August this year, leaving only 2 months for the cotton enterprises to sell. Therefore, Xinjiang cotton enterprises will speed up the pfer of warehouses to the mainland warehouse on the one hand. On the one hand, they will voluntarily reduce their prices, and sell them at any cost, so as to speed up the withdrawal of funds.

At present, Henan, Anhui, Shandong, Hebei and other places in the warehouse lint 2128 (2129), 3128 (3129) class gross weight pick up prices fell to 13700 yuan / ton ~13800 yuan / ton, 13350 yuan / ton ~13500 yuan / ton, compared with the Dragon Boat Festival before the cut 100 yuan ~200 yuan / ton.

The price of the 3128 class machine picked cotton in Northern Xinjiang is also reduced to 12700 yuan / ton ~12900 yuan / ton with the adjustment of Zheng cotton futures price.

Henan, a cotton trading company sales department said that the current domestic cotton sales did encounter difficulties.

Generally speaking, there is little demand for lint in the off-season.

Cotton sales in 4~6 months are lower than those of the same period last year. In order to open up a sluggish sales situation, the sales department is trying to contact downstream customers to win more lint orders. Although the quotation has dropped somewhat in recent months, the situation of sales disruption has not improved recently.

At present, it is the sensitive period that will be announced after the throwing and storage plan is about to be released. Before the specific plan of dumping and storage comes out, part of the textile enterprises, in order to be safe, maintain a low inventory with a small number of procurement methods, and cotton enterprises begin to reduce raw material procurement and wait for the national storage and storage of cotton.

In addition, the amount of bonded cotton in Australia cotton and Australia cotton in 2015 has been increasing. The Brazil cotton with high quality and low price is also concerned by more Chinese cotton textile enterprises and traders.

In addition to the demand for textile enterprises, the increase of imported cotton yarn also causes domestic cotton sales to be in a predicament.

According to the latest statistics of the General Administration of customs, China imported 806 thousand and 200 tons of cotton yarn in 1~4 months in 2015, an increase of 16.1% over the same period last year.

If so, this year is likely to exceed the total import volume last year.

In fact, many cotton yarn factory owners from Eastern and southeastern coastal areas of China believe that imported cotton yarn has certain advantages in price, so more small and medium-sized weaving mills, printing and dyeing mills and garment factories will give up domestic cotton, purchase imported cotton and reduce production capacity.