Textile Enterprises To Buy Cotton "Shu Dao Difficult" Cotton Yarn Profits See Where

Since June, India, China and the United States have been the three largest.

Cotton prices in the main producing countries have risen from violent to soaring. The appellation of "God cotton" and "demon cotton" shows the process of increasing cotton prices from love to panic by institutions, media and cotton companies.

According to statistics, from June 1st to July 13th, the main contract of ICE cotton and Zheng cotton rose 12.11 cents / pound, 3760 yuan / ton respectively, and the increase in a month or more reached 19.32% and 30.64% respectively. Since June 1st, the pickup price of India's S-6 and J34 has increased by 15.70 cents / pound, 13.30 cents / pound, 22.05% or 18.29% respectively, and the ex factory price of S-6 is only lower than that of SM13/16 CNF cotton price 1-1.25 cents / pound (2016 new cotton, 7/8 shipping date), which is higher than that of 7/8 month.

The surge in the three cotton growing areas has a significant impact on the global cotton consumption, demand and confidence, but there are still about 10 million tons in China.

Available for rotation, fully capable of regulating supply and demand, India CCI, "the year of storage, then polished", do not stay next year cotton, coupled with India's domestic cotton business and traders are not many, the function of the central cistern is missing, so the government departments and mills have no way to cotton prices skyrocketing.

From the survey, as the domestic cotton spot rose to follow the Zheng cotton contract in recent months, the average daily paction price of the national cotton store has broken 14000 yuan / ton, and the CNF and CIF quotation of the port bonded, the spot cotton spot spot and the ICE stage cotton have been in the rocket.

Replenish cotton stocks can be described as difficult.

First of all, the lower probability of spinning slightly better national cotton reserves is lower.

In June 1st, the average price of the national cotton store was 12078 yuan / ton, the lowest paction price was 11100 yuan / ton, in July 13th, the average price of the national cotton store was 14277 yuan / ton, the lowest paction price was 13570 yuan / ton, and the monthly paction price rose by 2199 yuan / ton, 2470 yuan / ton respectively, up to 18.2% or 22.25%, while the C21S-C40S cotton price quoted in the 4-6 month order returned to the market was only up by 500-1000 yuan / ton, and the price of a few weaving factories was tentatively raised by 0.02-0.05 yuan / m.

On the one hand, small businesses have few raw material stocks, and cotton is used to buy with them. Cotton prices have risen sharply, cost has risen sharply, production, purchase orders and viability have declined rapidly; on the other hand, yarn, grey cloth and clothing are in a long production period, the pressure of capital pressure is high, exchange rate fluctuates greatly, foreign trade companies' profits and orders will drop, and the characteristics of market and demand are off season.

Secondly, there are few surplus cotton quotas, and most cotton mills are in the nude swimming state.

In 2016, according to WTO commitments, 894 thousand tons of 1% import tariff quotas for cotton were issued, of which 1/3 was issued to large cotton import enterprises.

According to statistics, as at the end of May, China imported 358 thousand tons of cotton in 2016, a decrease of 408 thousand tons compared with the same period of last year, a decrease of 53.3%. However, taking into account the signing and shipping volume of Australia cotton in the 6, 7 and August shipping season, the actual usage of the quota is expected to be 40-45 million tons, with only 40-50 million tons of quotas available. The supply of high grade and high quality cotton in China can only depend on Australian cotton, American cotton and Brazil cotton in 7-10 months.

In addition, domestic cotton is consumed in 2015/16 and the remaining lint is low.

Since mid July, Zheng cotton's main contract has broken through 15790 yuan / ton, reaching a new high of 16030 yuan / ton, and the average daily paction price of the national cotton store has been returned to 14100-14200 yuan / ton. The price of the 3128 grade Xinjiang hand picked cotton warehouse has risen rapidly to 14500-15000 yuan / ton in 2015/16, which has risen by 500 yuan / ton over the first ten days of July.

In terms of cotton spot price, spinning C21, C32S, C40S yarn spinning enterprises not only have no profits, but production and marketing "upside down" 500 yuan / ton or more.