Reserve Cotton Auction Prices Remain High, Companies Take Cotton Costs Rise

Since the middle of May, many textile factories in Anhui have obviously felt the pressure. On the one hand, the auction price of cotton reserves has been at a high level. The higher the trend of the auction, the higher the cost of raw materials for spinning enterprises. On the other hand, the sale of downstream cotton yarn is not as good as that of the previous stage, and it has slowed down and the sales price has shown a steady trend.

Because most cotton mills rely on cotton reserves for most cotton mills at present, and cotton auction prices remain high, the cost of cotton picking up is rising.

In particular, the reserve of Xinjiang cotton is limited due to its high cost performance plus limited daily delivery.

Fierce, high paction price.

According to the head of a textile factory who has bid for more than 2000 tons, even now the quality of Xinjiang cotton is poor, the auction price will be above 15000 yuan / ton, and the cost of buying cotton will naturally rise.

On the contrary, sales of downstream cotton cloth have not improved. The sales price of cotton yarn has been loosened recently, and the profit margins of enterprises have been compressed.

40 ordinary combs at present

The selling price was 23900-24300 yuan / ton, 200 yuan / ton lower than that in the first half of this month, and the sale price of 32 pure cotton yarn was 22900-23300 yuan / ton, and 100-200 yuan per ton.

The main reason is that the downstream orders are slow and the textile mills compete with each other for price reduction.

Textile mills are worried that if the auction price of cotton reserves is high and the sales of downstream cotton products become worse, spinning enterprises will no longer have a good time in the early days.

Pure cotton cloth has been adjusted, the price has basically remained stable, and then the goods are relatively general. Some of the specifications have a slight pressure on the stock of grey cloth.

The inventory is pferred to the downstream, weaving factories mostly produce by single production, and the purchase of cotton yarns is also gradually short term orders.

A factory in Hebei C 21x21 108x58 63 "yarn card price 8.30 yuan / m, a factory in Shandong C 40x40 133x72 63" plain cloth width quoted 7.30 yuan / meter, Tengzhou factory C 60x60 90x88 64 "Bali yarn quote 5.30 yuan / meter, are basically flat."

India cotton Federation said that the current fundamentals are not optimistic, the rise is difficult to sustain.

At present, India's cotton stock is 85-95 million tons. If the summer monsoon is in good condition, the cotton planting area may increase.

India's industry expects that India's cotton planting area will increase by 10-12% this year, and the growth rate in some areas may reach 20%.

The Federation said that speculative bulls might continue to increase positions, and ICE futures could rise further.

For India, the rise in international cotton prices will reduce India's cotton imports so much that India's domestic cotton supply may be tight by July. Cotton Traders in hand may expect to buy 46000-47000 rupees, but the high cotton prices will not continue in the face of large-scale cotton expansion.

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