Ahead Of Schedule 2016 Reserve Cotton Rotation: Traders' Willingness To Auction Cotton Reserves

along with

Time is approaching.

The factory has begun preparing for auction related funds and accounts.

It is different from some small and medium-sized cotton enterprises.

Traders behaved more cautiously. They both had too low bid price, which was not conducive to the current inventory spot sales, which led to the expansion of the deficit and the reversal of supply and demand. There was also a high bid price, a widened gap between inside and outside cotton prices, a decline in competitiveness of cotton textile exports, and an unease of small and medium cotton mills to stop production and collapse.

So, what is the enthusiasm of traders to participate in the auction of cotton reserves? Some traders expressed their views.

Whether or not to participate in auction is critical to the quality of cotton resources.

In the past 2010-2015 years, the state has vigorously promoted the textile industry to accelerate technological pformation, upgrade industries and adjust the product mix. More than 50% of China's cotton yarn market below C32S has been pferred to Southeast Asian countries such as India, Pakistan and Vietnam. Most textile enterprises make up less than 20% or even 10% of the total number of cotton yarn produced by C32S and below. The demand for cotton for textile enterprises is mainly 28mm and above, the Ma value is B/A, and the breaking strength is more than 28CN.

Traders are only a "reservoir", the actual demand of downstream customers is the key, preparation work should be done, but no need to enter the market auction to see the needs of cotton mills.

There will be more cooperation between traders and textile enterprises.

Since 2015, the state's commercial banks and financial institutions have greatly reduced their credit support to the textile industry. Not only the import trade of cotton and cotton yarn has been affected to a certain extent, but also the domestic raw material procurement of textile enterprises has been stretched too hard. In 2016, the situation of tight cash flow and large inventory pressure is difficult to change. Therefore, some of the relatively abundant traders and the textile enterprises jointly bid for the cotton reserves. They can easily hit the spot. Traders provide funds and are responsible for raw materials warehousing. The spinning enterprises "pay a batch of loans (including interest) with a batch". The spinning enterprises only need to raise the requirements for the quality of raw materials, and traders provide "one-stop" service.

No cotton, no risk, but more capital.

Some traders believe that the domestic cotton supply and demand in 2016 is only a structural contradiction, while high quality and strong spinnable cotton are in short supply, while low and medium quality lint is overrun. Cotton textile enterprises and traders focus on high quality cotton reserves. Because of the limited cotton resources or the fierce competition, early Xinjiang cotton will play a supporting role in Xinjiang cotton. However, with the completion of the replenishment of the textile enterprises, about 10000000 tons of cotton reserves still need to be vigorously stocked. Will the auction price be lowered? If the reduction is bound to affect the sales of leather cotton,

Therefore, no matter how the quality of cotton is stored, there is no risk of cotton accumulation and no accumulation of risk.