Long Staple Cotton Business Risks Continue To Increase

At present, long staple cotton has been hit by sales difficulties.

A long staple cotton processing enterprise in Xinjiang said that enterprises are slow to move goods. The main reason is that the market is not very good. At present, the price of the 237 grade warehouse has dropped to 27000 yuan / ton, and the price has dropped to its psychological price rather than the shipment.

Downstream cotton enterprises take into account the current market situation, take a more wait-and-see attitude, buyers and sellers deadlocked.

The person in charge of the company believes that the price of the long staple cotton scale will not exceed 8 yuan / kg in 2015, far below the 9.0-10.0 yuan / kg scale of last year, and the scene of rush harvest will not be reproduced in 2014.

In 2015, the price of Xinjiang long staple cotton scale began to attract much attention, especially the recent upward trend of the long staple cotton changed to a weaker trend.

Although the high temperature weather will reduce its per mu yield, most operators are still worried about the market trend of long staple cotton in the later stage.

It is understood that recent

Continuous high temperature has a certain effect on the growth of long staple cotton.

Due to the requirements of ecological management in the Tahe River Basin, Awati county has been very tight in recent years, and the lack of water in cotton fields has led to the slow growth of cotton. Up to now there are also cotton fields with topping operations.

In the high temperature environment, the result of the operation is that the top of the cotton plant is withered, affecting the growth and development of the top peach, and has a certain impact on the yield in the later stage. The loss is about 5-10 kg / mu.

In addition, the cotton boll shed more and the yield of long staple cotton was also affected.

However, the decline in per mu yield did not bring any boost to the market.

Because according to some agencies' investigation and calculation, Awati County in 2015

The area has exceeded 1 million mu, and the area of long staple cotton in some cotton areas of Kuche, Sha ya, Ke Ping, Xin He, Bachu and Korla has also increased by a certain extent. It is estimated that the total output of Xinjiang long staple cotton in 2015 will probably increase by 40% over the same period last year (last year's output was around 70 thousand tons), reaching 100 thousand tons, the most recent year.

According to the director of the long staple cotton enterprise, up to now, there are about 10 thousand tons of long staple cotton stock in China. The total output of long staple cotton will reach a peak this year, which will bring huge risks to the business.

At present, there is no clear data about the annual consumption of long staple cotton in China. Some cotton producers believe that this year's domestic long staple cotton will be calculated at 8-9 tons.

The situation is not optimistic.

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According to media reports, Shaoxing Far East Petrochemical has stopped production and applied for bankruptcy and liquidation to the court.

Far east Petrochemical Industries Co has PTA capacity of 3 million 300 thousand tons, and is the largest PTA manufacturer in China.

This is the most important case of capacity withdrawal in the field of PTA in recent years, which means that the production capacity of polyester industry is accelerating.

As we all know, the price of products is determined by the balance between supply and demand of the market. Oversupply will inevitably lead to a fall in prices. If the price is lower than the cost for a long time, some enterprises will inevitably be eliminated, so as to achieve a new market equilibrium.

As early as March this year, there was news that the PTA giant Far East Petrochemical started bankruptcy proceedings, and factories began to shut down.

Affected by this, the price of PTA has slowed down.

Looking ahead, although the current downstream polyester start to maintain around 74% low, and the raw material is limited, but there are no shortage of manufacturers in the near future, and traders at low prices reluctant to sell, PTA spot prices are relatively strong.

With the coming of the peak season in August, the downstream demand will further improve, and the rise in PTA price is a big probability event.

Raw materials also have strong support. Although there are still unstable factors in international oil prices, raw material PX remains stable and small and medium.

The US PX market tends to be tight in the near future, while the supply of PX in Europe is also tight. Asia may become a new source of raw materials for PTA producers in the US.

PTA manufacturers in the United States have been negotiating the purchase of PX goods from Japan and South Korea to the United States.

If a large number of PX goes to the US, the supply of the future Asian market will decrease, and the tight price of raw materials will boost the PTA price.