When Will The Price Of Long Staple Cotton Keep Bottoming Out?

A cotton merchant in Shandong once again staple cotton.

Down 200 yuan / ton, of which 137 A-class price is 21500 yuan / ton, 237 class 20500 yuan / ton, 336 level 19800 yuan / ton.

"Simply can not sell, can only be attracted by low prices."

First, the long staple cotton has not been asked for a long time. At present, there are still 1100 tons of long staple cotton in the hands of the cotton merchants. Since March, only two tons of long staple cotton have been sold, which has a total pressure of 190 tons.

Second, the financial pressure is unbearable. The total cost of 1100 tons of long staple cotton is 1100 x 22000=2420 yuan at the cost of 22000 yuan / ton.

Interest is calculated at 8% (annual interest rate), and the interest paid by a moonlight is as high as 160 thousand yuan.

In addition, the cotton merchant still has a lot of money failed to recover, he reluctantly exclaimed: "guarding these cotton, just like guarding an explosive library."

It is understood that market participants have the following concerns:

First, 2015/16 year.

Supply and demand are very loose.

In 2015, Xinjiang's long staple cotton sown area was about 1 million mu, and its output was 100 thousand tons.

The demand for long staple cotton in China is between 6.5-7 tons per year.

In addition, there are some Pima cotton and Ji Zhan cotton imports (according to USDA statistics, as of March 17th, China signed a total of 27 thousand tons of Pima cotton, of which 22 thousand tons shipped) hit the domestic spot market. Some textile mills used high quality Australian cotton instead of long staple cotton to produce high count yarn, and the market's demand for long staple cotton was not optimistic.

Second, since the beginning of this spring, domestic high order combed yarn orders are scarce, and the turnover is not active.

According to the textile enterprises in Jiangsu and Zhejiang, recently combed 60S and 80S, especially cotton with long staple cotton.

Sales are slow, and the finished goods inventory is on the rise. Some manufacturers try to reduce product and long staple cotton inventory to ease financial pressure.

Third, it is understood that cotton growers in Xinjiang have a higher enthusiasm for planting long staple cotton this year. It is estimated that the planting area should be maintained at 1 million mu and the output is between 10-11 tons.

It can be seen that 2016/17 is still oversupply of long staple cotton and the price is under heavy pressure.

Fourth, the state plans to go abroad to store cotton in mid and late 4, and the pressure on the fine staple cotton market is relatively large. Under this influence, long staple cotton has little chance of going upstream.

Therefore, market participants believe that the price of long staple cotton will continue to go down in the near future, and the 137 class a will drop to 21000 yuan / ton in short term, or even fall below 20000 yuan / ton.

Here, remind long staple cotton enterprises to speed up sales and avoid possible greater risks.

In Xinjiang, many production of long staple cotton ginning plants are bogged down in "mire".

According to the head of a Akesu ginning factory, in 2015, 10 long staple cotton in Xinjiang rose first and then fell, taking 137 A-grade as an example. Last year's high point reached 25500 yuan / ton, while the current price was 21500 yuan / ton, and the 5 month time fell by 4000 yuan / ton.

"The ginning factory is having a hard time now."

The official said that in 2015, the factory processed more than 6700 tons of long staple cotton and sold 3100 tons, with an average loss of 600 yuan / ton and a total loss of 1 million 860 thousand yuan.

The remaining 3600 tons, the current cost upside down 1600 yuan / ton, is expected to make a loss of 5 million 760 thousand yuan.

"I'm afraid it's hard to turn over this year."

The person in charge of this year basically did not report any hope.