Cotton Spinning Enterprises Once Again Locked Their Eyes On The National Reserve.

In September, the immediate profit of textile enterprises using throwing and storing cotton was on the decline, especially in late June. At present, most cotton producers have been stocking for about a month. If they are accounted for by one month's volume, the textile enterprises in September can maintain a certain profit margin, and gradually expand the trend.

Nearly 4 months after the end of September 30th, the market situation showed that this year's dumping and storage pactions were very good.

As of September 29th, the total volume of dumping and storage was 2 million 600 thousand tons (excluding the default amount), the turnover rate reached 88.67%, the average price was 13261 yuan / ton, and the conversion price was 3128 yuan, 14108 yuan / ton.

The industry believes that entering the September, the price of new cotton is high and the listing is slow, prompting the cotton textile enterprises to once again focus on the national reserve, pushing the volume price to rise again, the recent turnover has risen to nearly 100%, and the paction price has also hit 15300 areas, thus driving the futures market.

With the end of the dumping and storage, throwing and storage increased, which made the market pressure.

Zhejiang merchants futures analyst Wu Ling believes that

In the early stage, the turnover rate has been maintained at a high level, and the turnover rate has declined only after the announcement is delayed.

But in recent years, due to the late stage of throwing and storage, the new cotton market is in the initial stage, with a small quantity, which can not meet the daily production and use of spinning enterprises, and the price of seed cotton is relatively high. The cost of spinning enterprises has been uplifted with cotton. Therefore, textile enterprises have actively participated in the auction of state reserves, and the turnover rate has risen to 100%, and the price has rebounded.

In Wu Ling's view, although spinning enterprises actively participated in the auction of national reserves, reflecting the gradual warming of downstream demand, at present, most of the cotton stocks of textile enterprises have reached more than 1 months, and can be used until the end of October. The market is expected that the new cotton market will change in volume in the middle of 10 months.

With the increase in the supply of new cotton, it will also put pressure on the market, and cotton prices will be kept under pressure.

Judging from the situation of cotton yarn, the profit of textile enterprises fluctuates in the near future. The immediate profit of mainstream cotton yarn C32S is from 500 yuan / ton to nearly no profit.

September

The use of cotton is still dominated by throwing and storing cotton, so the calculation of throwing and storing cotton price is closer to the actual situation of spinning enterprises.

In 2016 1-8, the export volume of China's cotton yarn reached 174 thousand tons, a decrease of 17.94% over the same period last year, a 4.10% increase in the ring ratio, and a 35 thousand and 700 ton increase in cotton yarn exports in China, an increase of 27.14% over the same period last year and a slight decrease of 0.57% in the ring ratio.

Import data showed that although the import cotton decreased in August, the import yarn ratio increased.

The statistics obtained from China customs also showed that the export value of China's textile yarn, fabrics and products reached US $71 billion 185 million in 1-8 months in 2016, a decrease of 1.3% compared with the same period last year. In August, the export value of China's textile yarns, fabrics and products reached US $10 billion 246 million, up from 9 billion 441 million US dollars in the same period last year.

In 1-8 months, 241 thousand tons of cotton yarn were exported, a decrease of 1.45% compared with the same period last year.

2015/16 (2015.9-2016.08) accumulatively exported 338 thousand tons of cotton yarn, a decrease of 7.08% over the same period last year.

Wu Ling believed that

The increase will reduce the demand for domestic cotton by textile enterprises. If the prices of new cotton are listed on a high level, the import of cotton yarn will probably continue to increase.

Market observers believe that the short term supply of the cotton market will still be the two sale of the reserve cotton after the completion of the round of cotton reserves. Because the market supply is mainly in the hands of traders, cotton prices will still be strong in the short term, and Wu Ling also expects that the downward pressure on cotton prices will gradually emerge after the new cotton concentration is listed.