What Positive Signals Did The Market Rebound In Zheng Cotton Market?

In March 7th, the CF1609 contract of Zheng cotton futures rose 340 points to 10540 yuan / ton.

The improvement of purchasing situation and the promotion of part of the fund's bottom up are also considered by some people.

Maybe it's still building the bottom.

In a word, the rally today is indeed a surprise to many people.

Since 2015, domestic

It is really worrying that not only the price keeps going down, but also the sales progress is slow. The whole cotton spinning industry chain seems to have lost confidence in the cotton market.

Recently, however, the price of chemical fiber has gone up, and at the same time, preferential policies have been put forward to reduce the cost of spinning enterprises and other enterprises. Can this series of factors superimpose the weak position of cotton consumption?

Since March, the trend of domestic polyester market has been abrupt, and the strong rise in product prices has caught people off guard.

In the wake of the obvious rebound in the market, the companies that are still waiting in the market are stocking up. The volume of polyester products has increased significantly, and even some manufacturers are in urgent need of inventory.

Affected by this, the price of polyester products in Jiangsu and Zhejiang provinces is also rising, and the turnover period of manufacturers is generally reduced to less than 15 days.

As of March 7th, the price of PET staple fiber was close to 7000 yuan / ton, and viscose staple fiber prices also rose to more than 13100 yuan / ton, even higher than cotton prices.

When the price of polyester and viscose rises all the way, cotton price advantage will gradually appear.

In the trend of higher prices of upstream chemical fiber products, downstream textile enterprises also welcome favorable policies.

In February 29th, the Jiangsu provincial government announced that the provincial, municipal, county (city, district) three levels of government introduced measures to lighten the burden of the real economic enterprises, and the province's opinions on reducing the cost of real economy enterprises were officially issued in February 26th.

The "opinion" includes five aspects, namely, reasonably reducing the cost of labor and logistics, further reducing the cost of energy and land, effectively reducing the financing cost of enterprises, lightening the burden of enterprises' taxes and fees, and reducing the institutional paction costs.

For example, from 2016 onwards.

The price of general industry and Commerce and other electricity categories is reduced by 3.12 cents / kWh.

For textile enterprises, electricity is the only cost after cotton raw materials.

At present, the domestic electricity price is generally higher than that of foreign countries. The area of Jiangsu and Zhejiang is about 0.9 yuan / degree, and the mainland is about 0.7 yuan, while the United States is 0.3 yuan per degree, India 0.5 yuan and Bangladesh 0.18 yuan.

The reduction of electricity price by 3 cents means that the direct cost of the enterprises is reduced by 3.3%, while the gross profit of the general textile enterprises is only 10%-15%.

In addition, there are preferential policies in terms of insurance, logistics and employment.

In addition, many provinces and cities such as Zhejiang, Hangzhou, Tianjin and Inner Mongolia have introduced preferential policies to reduce the cost of real economy enterprises. The action is regarded as a strong signal to release the steady growth of the economy.

Textile industry, as a representative industry of the real economy, will certainly benefit from it.

Under the above factors, how much cotton consumption can be changed and needs further observation, but after all, the above market and policy favorable factors will provide a solid foundation for improving the competitiveness of textile enterprises.