Lint Riot Confuses The Clothing Market, Spinning Companies Unable To Digest Rising Cotton Prices

According to the China Cotton Association, at present, there are not many cotton reserves left in the early stage of spinning enterprises, and some textile enterprises have the demand for replenishment, but the cotton prices that have risen sharply are unable to digest.

The "double 29" Xinjiang cotton price is about 16000 yuan / ton, and the pportation allowance of 500 yuan / ton is converted into the factory cost. The cost to the factory reaches 16500 yuan / ton (about 2000 yuan / ton more than the use of reserve cotton).

At present, the price of combed 32S and combed 40S is 22800 yuan / ton, 26000 yuan / ton, only 100 yuan / ton higher than the beginning of November, far less than the rising rate of cotton price.

Textile enterprises reflect the weakness of the recent sale of pure cotton yarn, combing.

Even less, the order situation of enterprises is not good, especially the sale of polyester cotton yarn has dropped significantly, and large orders are scarce.

Analysis of the reasons for the rise in cotton prices is closely related to the recent increase in the pportation pressure of Xinjiang cotton. There are people in the industry who have analyzed the impact of overloading on cotton warehouse receipts and spot products. The future pportation of Xinjiang cotton depends on the pport policy. If the capacity continues to be tight, the supply of cotton will be affected, and the price will be affected.

Domestic cotton prices skyrocketed, and the international cotton price represented by US cotton has not risen.

The difference has widened to around 2000 yuan / ton, and the output of Xinjiang cotton is not strong enough, and the quota of imported cotton has been limited. The production capacity of domestic cotton yarn with C32S and below counts has been decreasing. The proportion of small and medium enterprises is still increasing. The low count yarn of India, Pakistan and Vietnam will enter the Chinese market once again, which is not conducive to the development of textile enterprises.

Speaking of the recent Zheng cotton futures market, it is very impressive.

In November 11th, the main contract CF1701 broke through 16000 yuan / ton and closed at 16270 yuan / ton limit. The night plate broke through the 17000 yuan / ton trading limit again. When the long jump was booming, the daily limit board was quickly opened, and the direct limit to 14775 yuan / ton, the single day fluctuation rate reached more than 10%.

Nearly two days, Zheng cotton is in price.

In the market, under the impetus of Zheng cotton market, the price of cotton enterprises' lint began to riot. The Xinjiang South Xinjiang platform "double 29" and "double 30" pickup price increased to 16000-16200 yuan / ton, and the number of textile enterprises and traders increased with the inquiry, but the actual turnover was still insufficient.

Coupled with the promotion of demand for replenishment of textile enterprises, it is possible for Zheng cotton to become more bulls.

In addition, the RMB exchange rate continued to decline, other commodities have seen a larger increase, and the huge flow of property from the property market and stock market into the futures market and other factors also have a greater impact on cotton.

However, although the financial attributes of cotton may lead to a significant departure from the intrinsic value of commodity prices, this deviation is generally short-term. In the long run, supply and demand remain the main determinants of prices.