Mainland Textile "Get Together" To Buy Cotton In Southern Xinjiang

In November 18th,

Cottonseed prices rose again, the mainstream purchase price of 1.70-1.73 yuan / kg, southern Xinjiang is higher than northern Xinjiang, compared with the price of 1.66-1.68 yuan / kg this Monday increased by 0.04-0.07 yuan / kg.

As the price of cotton seeds rose, the purchase price of seed cotton in Akesu once again exceeded 6 yuan / kg (white cotton grade 3 and lint 40%).

At present, the purchase of seed cotton in North Xinjiang is basically over, and the mainland textile is "picking up" to buy Cotton in southern Xinjiang.

It is necessary to pay close attention to the behavior of directly raising the price of seed cotton.

The main reason for the increase in cottonseed price is the worry of the oil refinery.

Output began to pick up cotton seeds.

According to the latest production report data released by the national cotton market monitoring system, it is estimated that the total output of cotton in Xinjiang will be 3 million 669 thousand tons this year, down 14.9% from the same period last year.

China's cotton notarization inspection network data show that as of November 17th, the volume of inspection in Xinjiang amounted to 2 million 80 thousand tons, compared with 1 million 600 thousand tons in Xinjiang during the same period last year.

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Recently, the the Xinjiang Uygur Autonomous Region finance department issued a notice that the Xinjiang local cotton produced through road or rail pportation to the mainland sales area during September 1, 2015 to August 31, 2016 and in accordance with the conditions for declaration of subsidies will continue to arrange pportation subsidies for the Xinjiang River, with the subsidy standard of 500 yuan / ton.

It is understood that as early as 2011, the relevant departments made a decision. During the 2011-2015 cotton year, the subsidy for the railway pportation cost of the exported cotton was adjusted from 400 yuan / ton to 500 yuan / ton.

For five years, the cotton export subsidy standard has remained unchanged, which has not caused any impact on the purchase of downstream enterprises.

Although the subsidy standard has not changed, the cotton pportation mode has changed a lot this year.

According to statistics from relevant departments, in 2015 1-10, the total output of road pport cotton reached about 1700000 tons, and the total output of railway pported cotton reached about 1300000 tons during the same period.

In the 1-10 month of 2014, the total output of road pport cotton reached about 400000 tons, and the total output of railway pport reached about 3000000 tons in the same period.

According to relevant professionals, there are mainly two reasons for the road pport volume ahead of October this year.

First, domestic oil prices continue to fall.

Affected by the international market, domestic oil prices continue to decline.

In November 17th this year, the national development and Reform Commission issued a notice to decide that the price of gasoline and diesel should be cut down. This is the eleventh time the country has cut down oil prices during the year.

Affected by this, road pport costs this year dropped substantially compared with previous years.

Therefore, most enterprises adopt convenient and efficient way of highway pportation.

Two, cotton prices continue to go down this year. Downstream textile enterprises have adopted the strategy of buying and selling with a view to reducing inventory risk, and most enterprises have kept inventory for 1-2 weeks.

Under such circumstances, in order to ensure the cotton demand of enterprises, spinning enterprises can only choose road pportation.

It is understood that the railway pport will usher in the reversal in November, until the end of the year, the volume will be significantly higher than the highway.

Judging from the current reflection, the number of enterprises reporting railway pportation is increasing, especially in Shandong, Henan and other cotton textile industry concentration areas.

According to the staff of the Xinjiang package factory, with the end of the centralized procurement of textile enterprises in October, the timeliness of the demand for cotton is reduced, leaving room for railway pportation. Thereafter, the price of motor vehicles will gradually decrease.

Take Akesu to Hangzhou as an example, the freight price is about 900 yuan / ton, and the railway freight rate is 800 yuan / ton. If the enterprise applies for it, the freight rate can be reduced to 650 yuan / ton.