Long Staple Cotton: This Year The Price Has Been "Down And Down".

Since the beginning of this year, the price of long staple cotton has continued to decline, so far all the long staple cotton has been cost upside down.

On the 23 day, a cotton trader in Shandong said that the price of the 137 grade long staple cotton was 20800 yuan / ton, and the cost was upside down 2500-2700 yuan / ton, that is, the loss of 2700 yuan per ton of cotton.

Under such circumstances, some cotton merchants and enterprises are very reluctant to sell.

Since May 3rd

The price of domestic fine lint cotton rose instead of rising from the beginning of the rotation. In June alone, the price of fine lint cotton in the the Yellow River River increased by 200-300 yuan / ton.

The trend of domestic long staple cotton is going against the market trend. As of 23 days, the 137 and 237 gross weight of long staple cotton warehouse in Shandong was 20800-20900 yuan / ton, 20100-20200 yuan / ton, and 100-200 yuan lower than last week.

Market participants analyzed the reasons why long staple cotton has been sluggish for the following reasons:

First, loose supply and demand.

In 2015, the total output of Xinjiang long staple cotton was about 100 thousand tons, while domestic spinning demand was only 6.5-7 million tons, and supply and demand was more than 3 million tons.

Up to now, according to many cotton traders in the mainland, the commercial stocks and industrial inventories of long staple cotton are relatively large nowadays, especially in textile enterprises.

Second, the order of high count yarn is scarce.

According to the author's understanding, some spinning high count yarn,

Enterprises use 237 and 236 grade long staple cotton instead of 137 and 136 grade spinning, which results in

The higher the grade, the better the quality, but not easy.

In addition, some high spinning enterprises even use high-quality Australian cotton and American cotton instead of long staple cotton.

Third, the planting area of Xinjiang long staple cotton is relatively stable this year.

According to the national cotton market monitoring system data, the cotton planting area in Xinjiang has remained relatively stable this year. The sowing area of Xinjiang cotton has decreased by 6.3% compared with the same period last year, and the actual sowing area has reached 29 million 45 thousand mu. According to the relevant person in charge of Akesu, the area of Xinjiang's long staple cotton has reached 90 Mu this year, which is only 10% less than that of last year.

According to market forecasts, the output of long staple cotton in 2016 is expected to reach 9-9.5 million tons, basically not losing last year's output.

Generally speaking, the price of long staple cotton will go up in the middle and late 6 every year due to the supply of raw materials. But this year, the price has been "down and down".

Since this year, owing to the weakness of the downstream market and the sluggish terminal consumption, the phenomenon of credit payment between enterprises is more serious.

Therefore, long staple cotton enterprises are best able to lend loans to safety.