Order Return Of Low Count Yarn Has Great Influence On Cotton Market.

In 2015/2016, the cumulative output of reserve cotton reached 953 thousand and 300 tons, with a turnover rate of 97.31%, of which 657 thousand and 200 tons of domestic cotton were accumulated, and the turnover rate was 96.94%. The total import cotton turnover was 296 thousand and 100 tons, with a turnover rate of 98.16%.

Weaving factories and traders in Jiangsu, Zhejiang, Shandong and other places indicated that the current domestic high quality cotton yarn has a "hang upside down" of more than 800 yuan / ton with the A and A+ yarn of India Dachang.

Most Chinese buyers are deterred.

Imported cotton is expected to be looted by traders because of good quality, no "three silk", length and fracture strength. However, in 2012 and 2103, domestic cotton has also become a staple food for many textile companies and traders, and many institutions and cotton companies are surprised, especially in the real estate cotton and Xinjiang, where the color level is slippery and the fiber length is not ideal.

It also sold at a high price.

From the analysis, first of all, the reserve cotton production is later than the market expectation, and the imbalance between supply and demand of cotton is aggravated. Secondly, raw material inventory of textile enterprises, traders and cotton is at a low level. In addition, 2016 countries have only issued 896 thousand tons of cotton import quotas within 1% tariff, concentrating on large and medium-sized textile enterprises and large operators, and small businesses can only buy cotton from the spot market or from the cotton reserves.

The author believes that in addition to the above factors, there are two factors that deserve attention.

Low price starts, India domestic cotton prices rise sharply (May 1st -6 23 days, S-6 ginning factory price rose more than 10 cents / pound, and the same year 2015/16 cotton and West Africa cotton rose only 0.70 cents / pound, 0.8-0.9 cents / pound).

The former reduces the cost of spinning C40S and the following count cotton yarn by 500-1000 yuan / ton, and enhances the competitiveness of domestic yarn regardless of civil war or outside competition. The latter makes the quotation of cotton yarn FOB, CNF and CIF of India, Pakistan and other cotton mills as rocket, OE yarn, C20S, C21S, C32 and C40S yarn price increase by more than 0.20 cents / pound, and the Chinese market with imported yarn has been returned to Chinese cotton spinning enterprises.

Then, as the paction price continues to rise, the auction is more intense. Is there any profit from the reserve cotton spinning C32S and the following low spun yarn? The author calculates as follows: from the perspective of spinning technology, the yarn length of spinning C32S yarn is about 28mm, the breaking strength is 27mm and above, the horse value is C2, and the spinning of C21S yarn is slightly lower.

As an example: on June, 20-23, color grade "13", "14", "22", "23", and the length of 28mm cotton reserve price was concentrated at 12400-12700 yuan / ton (fixed), and the total cost was +5000 yuan / ton (processing cost, including labor, electricity and so on) without any cost from spinning to selling at least one and a half months' financial cost: (12400-12700) * 1.06 (6% loss), =18144-18462 yuan / ton; comprehensive sales cost: (18144-18462) *1.04 (input and output tax differential 4%, some provinces have unified sales tax) +500 yuan / ton (pportation cost) =19400-19700 yuan / ton; financial cost was about 18144-18462 yuan / ton, C32S yarn total cost was about RMB yuan / ton. With 32S yarn

At present, the selling price of C32S in the Jiangsu and Zhejiang market is about 20500-20800 yuan / ton, and the profit of cotton spinning C32S cotton yarn in cotton mill is 500-1000 yuan / ton.