Good Momentum Of Cotton Reserves, Textile Enterprises Pay Close Attention To Active Participation

In May 3rd, this year's national cotton storage wheel was finally launched under the expectation of the market.

The first week of the round (May 3rd ~5 6 days) the selling price is 12021 yuan / ton (standard price).

In May 3rd, the China cotton reserve management company plans to sell 30342.16 tons of cotton reserves, and the actual turnover is 30136.88 tons, with a turnover rate of 99.32%.

The sell-off of national cotton stores has made China's cotton market expect a tight supply pattern, and will also play a stabilizing role in the rising cotton prices. At present, the emergence of "cotton picking" in cotton reserves is due to the existence of high-grade cotton gaps in textile enterprises, and on the other hand, the market still needs a certain amount of time.

Reporters at the moment

We interviewed a number of textile cotton enterprises and market professionals.

A futures market expert said that the announcement of the policy of reserve cotton production basically confirmed the speculation of the market, and the supply pressure of short term reserve cotton increased largely by the market.

In the long run, the pressure of national cotton inventory will be alleviated, which will be very beneficial to the healthy development of China's cotton industry, and domestic cotton prices will continue to rise with insufficient momentum.

Cotton reserves have a good momentum.

According to the data released by China cotton storage company, in May 3rd, the China cotton reserve management company plans to sell 30342.16 tons of cotton reserves, and the actual turnover is 30136.88 tons, with a turnover rate of 99.32%.

Among them, China made 8060.48 tons of cotton and 22076.39 tons of imported cotton.

The highest paction price is 13820 yuan / ton, the lowest paction price is 9730 yuan / ton, the average price of the paction is 11959 yuan / ton, and the 3128 price is 12904 yuan / ton (common weight), the average length is 28.3mm.

From the data point of view, the first day of the first round of imported cotton auction was hot, Australian cotton and American cotton were highly sought after because of the relatively high index.

Judging from the trading market, the auction of the highest price increase of a group of Australian cotton, the increase of 2740 yuan / ton deal, cited numerous traders and insiders in hot debate.

Although there are some filming of domestic cotton, the overall auction is still ahead of expectations, with the highest increase of 1960 yuan per ton.

In May 4th, 30393.76 tons of sales resources were sold out of the reserve cotton wheel, and the actual turnover was 30266.35 tons, with a turnover rate of 99.58%. Among them, the import volume of imported cotton was 25395.69 tons, and the actual turnover was 25395.69 tons, with a turnover rate of 100%. The average price of the imported cotton was 12459 yuan / ton, and the price of 3128 cotton was 13727 yuan / ton. The highest price was 13230 yuan / ton, and the lowest price was 11960 yuan / ton.

On the whole, in May 4th, the average price of cotton reserves was 12387 yuan / ton, and the highest price increase was 3060 yuan / ton (domestic cotton 2013).

In May 5th, the sale of reserve cotton was 30053.8541 tons, and the actual turnover was 29924.3581 tons. The turnover rate reached 99.57%, and the average price was 12423 yuan / ton.

The highest price of the day is 14350 yuan / ton (imported cotton), the lowest price is 10770 yuan / ton (domestic cotton), the highest increase is 3680 yuan / ton (imported cotton 2012), the main body grade 14, the average length is 29.4mm.

Affected by the good volume of national cotton reserves,

Prices have maintained a high and stable situation, and some of the hot products offer slightly improved.

In May 4th, the sale price of real estate cotton 3128B class was 12200 yuan / ton ~12400 yuan / ton, the 4128B level quoted price was 11600 yuan / ton ~11800 yuan / ton, the sales price of machine picked cotton 3128C2S3 was 12600 yuan / ton ~12800 yuan / ton, the Xinjiang hand picked cotton market was hard to find, 3128C2S3 sales price had reached 13000 yuan / ton ~ 13300 yuan / ton, and the selling price of the short hand picked cotton also increased to 13000 yuan / ton, all maintained a high and stable situation.

Textile enterprises pay close attention to active participation

The reserve cotton wheel has been highly concerned by Cotton Traders and cotton mills, and has been actively involved in it.

In addition, the cotton imports from the reserve cotton mill accounted for a relatively large proportion and increased the willingness of cotton textile enterprises to auction cotton reserves.

In particular, the first day of the auction, all the imported cotton resources were traded. The starting price of the bundles of Jiangsu cotton was 11080 yuan / ton, the paction price reached 13820 yuan / ton, the premium was 2740 yuan / ton, and the bid price was 137 times, which shows that the imported cotton resources are very popular.

The reporter interviewed many cotton textile enterprises in Henan, Jiangsu, Shandong and other places. The enterprises all expressed their participation in the auction, especially for high quality cotton resources, and the enterprises were very willing to buy.

Zhang Quanfa, chairman of Henan Yongan textile company, said: "enterprises have been paying close attention to the storage cotton rotation. Therefore, on the first day of May 3rd, the enterprises competed for 100 tons of Xinjiang cotton. Then, the enterprises will continue to participate in the auction of high quality cotton according to the order situation.

The current round of reserve cotton turnover is in sharp contrast to the previous round.

In 2015 and August, the output of cotton reserves came out. Although the timing was very scientific, the cumulative total output was only 63411.74 tons, accounting for about 6.34% of the total output of the total output (planned output of 1 million tons), and the result of the paction was hardly optimistic.

The reason for the turnover of cotton reserves is gratifying. According to the industry analysis, there are three main factors.

First, the market demand is relatively large.

The resources in the spot market are few, especially the quantity of imported cotton is limited, and the inventory of textile enterprises is low. Most enterprises say that they are "waiting for the rice pot". In addition, the quantity of imported cotton wheels is limited, and some spinning enterprises want to get high-quality cotton as soon as possible.

The two is that the reserve cotton auction is all re examined, and the inspection weight of the warehouse is also being re examined, so that the problem of heavy losses in textile enterprises has been solved. The quality and weight of cotton are relatively high. This has led many enterprises to relax their hearts and actively participate in the auction work. Three, there is no big restriction on bidding qualification, allowing enterprises with complete procedures to participate in the auction, and the participation of powerful traders has increased the enthusiasm of auction to a certain extent.

Import cotton price advantage weakened

This round of cotton reserves has weakened the price advantage of imported cotton, and it seems that enterprises have seen the dawn of China's cotton textile industry.

Earlier, some people in the industry believed that China's cotton production is decreasing, and that the rotation of cotton reserves will become normalized, so that China's cotton supply pattern will begin to change.

The narrowing of cotton prices at home and abroad also reduces the advantage of imported yarn.

Apart from the fact that imported yarn has a small profit in addition to combed yarn, the price of other cotton yarns is not competitive, and the price of chemical fiber is also rising.

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Recently, the price of domestic cotton futures market has rebounded strongly, and the spot price of cotton has also risen. Downstream viscose enterprises and viscose staple market which have an alternative effect on cotton yarn have also been improved.

Wang Jiayu, chairman of Jiangsu Nantong Shuang Hong textile company, said: "because of the continuous low innovation of cotton prices, who will lose money in large inventories, many enterprises will be very low in inventory."

He said that the raw material cost advantage of cotton textile enterprises needs a certain pmission time, and the cotton that has been put into production is purchased in the past. At that time, the price of cotton is relatively low, and the cost is relatively low. The current market cotton prices are higher, and the selling price of products is higher. This has resulted in additional benefits from raw material costs. In the early days of cotton prices rising, enterprises can obviously feel the benefits turn better.

But the benefits of this price increase are only temporary. If domestic cotton prices continue to rise, it will not be a good thing for China's export oriented enterprises.

Huafu color spinning related responsible person said that at present, the company's cotton inventory in 1~2 months, the long-term rise in cotton prices will lead to an increase in the cost of the company's products, if only the domestic cotton prices rise, and in the case of large gap with the international cotton prices, then will affect the international competitiveness of the company's products.

Cotton prices continue to rise power Limited

As for the cotton prices rising sharply in the early stage, with the increase of market resources and the increase of market resources, the pattern of tight supply of cotton will gradually ease, and cotton prices will also fall.

However, from the two days before the sale of State Cotton stores, almost one hundred percent of the turnover rate, the high price of imported cotton and domestic cotton, and the enthusiasm of participating customers in the industry have never stopped. This has made the market worry that the current decline in cotton prices is temporary and there may be a sharp rise in cotton prices in the future.

In the announcement of the state reserve cotton rotation, the price of domestic and foreign markets rose significantly during a period of time, and the auction rate of cotton reserves sold more than 3 days or more than 70% a week.

From now on, the volume has reached 99% for 3 consecutive days, and the market is expected to increase the volume of supply in the late stage.

However, insiders said that at present, the inventory of enterprises is not high, and the traditional off-season of the lower reaches is coming soon. The demand for replenishment of the latter part of textile enterprises is there, but it will not be released for a short time.

Therefore, it is not recommended for downstream enterprises to increase procurement volume.

Wu Faxin, chairman of Shanghai yarn Bao Technology Limited company, also believes that there will be no big fluctuations in China's cotton market in May, and the factors for speculation in the market have basically been determined.

At present, the high turnover rate and high paction price confirm that there is a shortage of cotton supply and high quality cotton in domestic cotton market. Two, it is confirmed that in the early decline of cotton prices, there is a problem of excessive inventory in the cotton industry chain.

With the continuous selling of state cotton and cotton, the supply and demand structure and supply structure of domestic cotton market will be improved.

If we consider the other cotton market's supply of resources in succession, such as the sale of high quality Xinjiang production and construction corps cotton, it is estimated that in May and June, the turnover rate and the selling price of the national cotton store will both fall.