In Response To The Crazy Cotton Market, How Did Xinjiang'S Textile Enterprises React?

In July 12th,

The volume of output remained at 30 thousand tons, not only did it not bring bad influence to Zheng cotton, but helped them to go all the way, and this overreaction was beyond the expectation of most people.

Although Zheng cotton has experienced a short-term oscillation call back, or even once approached 14000 yuan / ton, but it has not shaken its upward trend. Finally, under the influence of the US cotton surge, the main CF1701 contract climbed to a high level of 15380 yuan / ton again. In the face of such a crazy cotton market, how did the Xinjiang textile enterprises react?

It is reported that at this stage Xinjiang

General lack of business

Raw materials, but the enthusiasm of the enterprise procurement is not high. In order to ease the tension of raw materials, some enterprises have begun to reduce production capacity, on the one hand expect cotton prices to appear callbacks, on the other hand observe the situation of cotton yarn price rise, and decide whether to buy lint.

As shown in the figure above, domestic cotton yarn prices have risen in 4-7 months, of which C32S rose the largest, the difference between before and after was 1000 yuan / ton, and cotton price difference reached 2000 yuan / ton during the same period, while Zheng cotton rose from 10000 yuan to 10000 yuan to 15000 yuan / ton.

The price of cotton yarn is obviously lower than that of cotton, and the profit of textile enterprises has been squeezed.

A person in charge of a cotton enterprise in Xinjiang said that the spot price is higher, the quality cotton price has already been over 14000 yuan / ton, and the spinning profit is low, so it resolutely stops production and sells the cotton raw materials for self use to other spinning enterprises at high price.

Up to now, the price of imported yarn has not changed at present. As of July 11th, the price of C32S imported yarn is around 21000 yuan, while the price of C32S domestic yarn is around 20800 yuan / ton.

Although the enthusiasm of the downstream textile enterprises has declined, it has failed to prevent cotton prices from rising. At this time, Xinjiang textile enterprises do need to calm down the cotton market trend and find out the countermeasures.

What changes will take place in the market in the next period?