The Rise Of Cotton Prices: What Is The Impact On The Profits Of Cotton Spinning Enterprises?

The reserve price of 2016/2017 reserve cotton is 15885 yuan / ton (standard class price), up 333 yuan / ton compared with last week.

Affected by this effect, on the 22-25 th of May, although the turnover ratio decreased gradually from 61.60%, 60.26%, 53.19% and 51.21%, the average price of Xinjiang cotton traded on four trading days were 15598 yuan / ton, 15541 yuan / ton, 15604 yuan / ton, 15687 yuan / ton respectively, showing a rising ladder, and the highest increase of Xinjiang cotton rose from 1340 yuan / ton to 1340 yuan / ton.

Since the middle and May of last year, the quality of Xinjiang cotton in Henan and abroad has reached 400-500 yuan / ton in 2016/17, and the picking price of "double 28" and "double 29" hand picked cotton in the mainland, such as Shandong, Hebei, etc. is 16000-16200 yuan / ton, 16300-16500 yuan / ton (public settlement, the original public inspection), which is higher than that of Zheng cotton in the past month of 500-700 yuan / ton, but it is lower than the reserve cotton price of 3128 standard level 300-400 yuan / ton.

It is understood that the current domestic market in addition to

The OE yarn has a strong turnover. The production and sale situation of C21s-C50s combed yarn and combed yarn is very unoptimistic. Since the beginning of May, the price of some cotton mills has been lowered by 300-500 yuan / ton.

In addition to some stable orders and high profit margins, cotton prices are strong and yarn trend is weak, causing some cotton textile enterprises to be in a dilemma.

Some cotton mills increase the proportion of polyester cotton yarn, polyester viscose yarn or increase the output of high count yarn or low count OE yarn, and reduce the production capacity of 20S-40S yarn.

What is the profit situation of the current cotton mill?

C21s-C40s profits have been greatly reduced, and enterprises are facing the risk of low profits or even losses.

From the investigation of the textile enterprises in the mainland, the cotton quality of Xinjiang cotton as the spun C32 and C40S yarn is not big. The main concerns are "three yarns", color grade and fracture strength.

22-25, the average price of Xinjiang cotton was 15500-15700 yuan / ton.

The direct cost is 15500*1.05+5500 yuan / ton (processing fee) =21775 yuan / ton; comprehensive sales cost: 21775*1.04 (difference between sales and sales tax) +250 yuan / ton financial cost (in 2 months) =22900 yuan / ton, and in late 5, the price of domestic C32S yarn is 23000-23200 yuan / ton, which is only 100-300 yuan / ton higher than the comprehensive cost.

If the loss is large, the storage time is long, or the arrears are taken up, and the 1-2 months will be paid or accepted, cotton mills will probably not be profitable.

JC40S and above count cotton yarn has profit, but slow delivery, capital pressure for a long time.

5 in the second half of the month, the price of JC40S cotton yarn stabilized at about 28200-28500 yuan / ton (medium matching, medium size cotton mill, without adding long staple cotton). Because of the low inventory and high quality cotton expected shortage, the yarn factory had a strong desire to set prices.

In 2016/17, the "double 29" hand picked cotton and the "double 30/31" machine picked cotton were quoted at 16400-16500 yuan / ton, 16600-16700 yuan / ton, and the direct cost of spinning JC40S yarn was: 16500*1.15+7500 yuan / ton (processing fee) =26475 yuan / ton; comprehensive sales cost: 26475*1.04+250 financial cost (2 months) =27784 yuan / ton, so the profit of spinning JC40S yarn enterprises was about 500-700 yuan / ton.

Considering that the quality of Xinjiang cotton in China is small, lots of batches, large quality differences, and raw material supply are not stable, the stability of SMEs' yarn quality is not enough.

OE8S-OE21S yarn production and sales are still available, and profits are mainly supported by volume.

It is understood that at present, the price of domestic OE12-OE16S yarn in Jiangsu, Zhejiang and Guangdong markets is concentrated at 15500-16500 yuan / ton (medium high cotton), and the net profit of the cotton mill is generally 200-300 yuan / ton (a few high-quality OE16S and OE21S yarn profits can reach 500 yuan / ton).

Some mainland manufacturers bid for the real estate cotton at the price of 14200-14500 yuan / ton, adding a short linen, combed noil and other spun yarn to match the OE yarn, and the profit is relatively stable.

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