How Will The Textile Enterprises Respond To The Announcement Of The 2016 Cotton Reserve Announcement?

In April 15th, the national development and Reform Commission announced.

In 2016, the reserve cotton rotation will start in May, and the pricing will take the form of "asymmetric rotation, first round and backward entry, multiple rounds and fewer rounds".

The problems of reserve cotton prices, quality and weight are becoming clearer.

The quality of the reserve cotton from this round is increased, and the procurement is more advanced for enterprises.

Spinning 32 or less yarn is not a big problem. Part of the reserve cotton can be spun to 40.

Therefore, spinning medium and low spin yarns is the biggest beneficiary.

For enterprises producing high count yarns, the willingness to purchase cotton reserves is low, but the price of reserve cotton reduces the spot market price and the procurement cost of textile enterprises is reduced.

Taking into account the current spot market situation, this reserve cotton priority is out.

The high quality cotton and textile enterprises urgently needed by reserve cotton and textile enterprises have a high degree of concern for imported cotton reserves. Besides quality, more importantly, the settlement of net weight of imported cotton reserves is heavy.

Whether the reserve cotton production can meet the "win-win" situation that the state goes to stock and the small and medium-sized textile enterprises live, or depends on the textile demand situation.

In March, small and medium-sized textile enterprises, due to various costs, funds and sales, had limited production and shutdowns, especially those producing 32 yarns.

In large textile enterprises, the enterprises that produce high count yarn and blended yarn have better profits, and pure cotton yarn is hard to say.

After the official launch of the reserve cotton, some of the small and medium textile enterprises are going back to work. Considering the factors of labor, hydropower and imported yarn prices, the enterprises will wait and see the paction price of the reserve cotton and choose the right time to resume work.

Downstream clothing and clothing, since the beginning of March, sticky short, polyester short cumulative increase of about 500 yuan / ton, and cotton yarn prices fell slowly, some clothing enterprises in the procurement of fabrics has placed their eyes on all cotton grey cloth, procurement volume also has an increasing trend.

In addition, garment enterprises also admit that the colorful and functional chemical fibers on the market have been accepted by consumers. It is rather difficult for cotton products to return to the position of "boss".