The Cotton Mill Has Been Unable To Bear Down The Price Of Cotton.

Recently, the average price of cotton reserves and the declining turnover rate have made the cotton market extremely cold.

According to the boss of a ginning factory in Cangzhou, Hebei, since the average price of cotton reserves has fallen over 600 yuan / ton since the 6 day of the cotton rotation, most of the cotton ginning mills have been unable to bear the price, and the cotton prices have also been lowered.

Shandong, Hebei, Henan and other real estate cotton grade 3128 prices fell to 15700 yuan / ton (gross weight, pick up) around, compared with the same period last week fell nearly 200 yuan / ton.

Not only that, during the actual paction process, most of the ginning mills have to attract customers, if they purchase more than 100 tons at a time, the price can be further reduced by about 50 yuan / ton on this basis.

And some of the less quality cotton is also down no bottom.

On the 15 day, the boss of a ginning factory in Xiajin, Shandong, said that the price of cotton grade 4128 and grade 2227 in the hands of nearly 170 tons now is reduced by 150 yuan / ton today, 15000 yuan / ton and 14500 yuan / ton respectively.

Recently, many sectors of the industry have been pessimistic about the market outlook, indicating that the average price of cotton reserves has been declining continuously, and the market outlook is not optimistic.

The near future,

The main force is fluctuating near 15500 yuan / ton. Zheng cotton, as a market "weathervane" and "barometer", is not strong enough to directly suppress corporate confidence.

The RPG enterprises "stand by and watch".

No matter textile mills or traders, there has been no rush and enthusiasm at the beginning. Many of them have begun to "stop hand" and look at it coldly. This is also the main reason for the recent decline in the turnover rate of cotton reserves.

However, most market participants believe that the essence of the phenomenon must be seen in the near future.

Small drop does not affect the overall situation. Cotton prices are moving upward.

According to some market participants, there will be a phenomenon of high quality cotton rush in the 4-5 month of this year. Therefore, can high quality cotton enterprises lose confidence in the decline of cotton prices?

The reasons are as follows:

First, the affordability of textile enterprises.

China

Since 2016, it has gradually stepped out of the mire and made a small profit.

Since the Spring Festival of 2017, most spinning enterprises have been running at full capacity and production is full of vitality.

Because of the cost factor, the price of the outer yarn is upside down by 900-1200 yuan / ton, and the competitiveness of the domestic yarn is improved. Therefore, it has a certain foundation for the digestion of high cotton prices.

Two, the domestic cotton price is at a low level.

It is understood that although the current 16000 yuan / ton cotton price than the 2015/16 price rose nearly 3000 yuan / ton, but this year's target price (18600 yuan / ton) still has a distance.

In particular, the domestic cotton planting area has been reduced. Because of low income, many cotton farmers have abandoned their seeds. Only by raising the price of seed cotton can cotton farmers continue to grow cotton.

Three, the shortage of high-quality cotton is a serious problem.

The author exchanges with some manufacturers. It is generally felt that this year there is a small quantity of high-quality cotton. Especially the reserve cotton is 2011-2013 years old, and there is not much problem in producing 40S and below.

Since March 6th, the sale of cotton reserves has been less than two weeks trading time, the paction ratio has decreased from 100% to 70.42%, and the average daily paction price has also decreased from 15476 yuan / ton to 14710 yuan / ton; while the disk price of zhengmian 1705 contract has dropped from 16500 yuan / ton to 15200 yuan / ton, the cost of cotton yarn of C40S and below has dropped considerably compared with that of 1 and February, and the pressure of callback of most cotton mills and traders on combed yarn and OE yarn has been increasing.

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