Textile Enterprises Worry About Pulling Up Reserve Cotton Prices

The rotation of reserve cotton has a more obvious impact on the downstream spinning market.

Since January 2016, China's cotton and cotton yarn imports have plummeted, much lower than the same period last year, mainly due to the decline in cotton prices and the loss of foreign cotton and cotton yarns.

Reserve cotton is about to turn out, and the price will be kept in line with the international cotton price. The price advantage of foreign cotton yarn will no longer exist. At present, the domestic cotton price seems to have seen hope for imported yarn enterprises.

In this regard, the relevant people believe that the reserve cotton rotation will still cause certain impact on imported yarn.

The biggest change in reserve cotton production this year is the linkage between the price of cotton reserves and the market. The cotton spot price index in the domestic market and the spot price index in the international market are calculated by 50% weight and adjusted once a week.

And the rising cotton prices in the current spot market can't help textile companies worry about the cost performance of cotton reserves.

According to the formula of reserve cotton rotation, the price of cotton keeps rising with the rising cotton price.

According to the cotton price in April, the average price of CCIndex3128B week is 11691 yuan / ton in the week of April 5th ~4 8, the average price of CncottonB week is 11689 yuan / ton, and the price of CotlookA (RMB) is 10997 yuan / ton, then the price of Zhou Pingjun's reserve cotton should be 11343 yuan / ton.

In the week of April 11th ~4 15, the calculated price of the reserve cotton was 11548 yuan / ton, which was about 200 yuan higher than that of the previous week. By April 20th, the calculated reserve cotton price had risen to 11871 yuan / ton.

If domestic cotton prices continue to be strong, we will not rule out the continued expansion of cotton prices at home and abroad.

The price of CNCottonB, CotlookA and CCIndex3128B in the week April 25th ~29 will determine the selling price of the reserve cotton in May 3rd, and how to make the cotton price go.

There was no bottom.

Wang Jiayu, chairman of Nantong Shuang Hong textile company, believes that if the price of cotton continues to rise, the auction price will certainly rise, and the actual paction price must be higher than that.

Then the cost of cotton reserves will be greatly reduced.

Henan Ping cotton textile company official said, affected by the impact of the reserve cotton rotation, at present, some small-scale spinning enterprises with a size of about 10 thousand spindles and ~3 spindles are returning to work.

If cotton prices can run smoothly, the production of small textile enterprises will continue to improve. Otherwise, the low spun yarn market will still be the world of imported yarn.

Because of its low quality and low strength, the reserve cotton is suitable for spinning 32 or less yarn.

Market competition.

In May 3rd, the reserve cotton will be officially released. The package inspection will increase the difficulty and time of shipment. Therefore, the estimated time to deliver the goods will be two weeks. Then, starting from late May, the low price domestic yarn produced by the reserve cotton will be "confrontation" with the imported yarn.

Since the price of the reserve cotton has been linked at home and abroad and is in line with the international cotton price, there is little difference in the raw material price between the domestic yarn and the imported yarn, so the large discount of the reserve cotton will inevitably reduce the cost of the domestic yarn greatly, and has a larger price advantage than the imported yarn.

Therefore, from the end of May to the turn of August, under the "strike" of domestic yarn, the survival space of imported yarn will be more difficult.

Detailed rules for cotton reserves:

The general idea of cotton storage digestion: the main way to digest cotton reserves is to operate asymmetrically, first round, and multiple rounds.

The way out: reserve cotton rotation is sold on the principle of open auction in the national cotton trading market. If necessary, the state will increase other designated trading platforms to carry out the reserve cotton trade.

Turn out time: from May.

The specific rotation time is the national legal day of August 31st ~2016 May 3, 2016.

The number of rounds: the total output should not exceed 2 million tons.

In principle, the number of daily sales is not more than 30 thousand tons, giving priority to arranging imported cotton wheels.

The price of the rotation: the reserve price of the cotton sale is determined according to the market dynamics. In principle, the selling price is linked to the spot price of cotton at home and abroad. The cotton spot price index in the domestic market and the cotton spot price index in the international market are determined by 50% weight, adjusted once a week.

Notarial inspection: the reserve cotton for rotation is organized by the China Fiber Inspection Bureau to conduct a comprehensive notarization test on the quality and weight.