Will The Cost Of Textiles Rise Upside Down If Raw Materials Go Up Sharply?

About 2 months from the new cotton market, worries of textile enterprises are gradually emerging.

Recently, according to some manufacturers in Shandong, Henan and other places, there are mainly three following aspects: when the raw materials are not ready, what should we do if we do not have enough raw materials?

Since March 6th, cotton prices have been dropping steadily. In order to reduce risks, most textile enterprises have low raw material stocks.

Near the end of the year, the low inventory situation has troubled the textile enterprises.

According to the relevant announcement of the national development and Reform Commission and the Ministry of Finance Announcement No. ninth in 2016, the deadline for sale of cotton reserves in 2017 is tentatively set at the end of August.

From September 1st to early October, new cotton has not yet been listed in large quantities, and there is a gap in the supply of cotton. Enterprises are worried that cotton prices will rise during this period, and no cotton can be used.

Whether the raw material will go up sharply and whether the cost of textile will be upside down? The head of a textile enterprise in Shandong said that the cost of combing 32S at present is about 21800 yuan / ton, and the selling price is only around 22000 yuan / ton, and the profit of the enterprise is only 200 yuan / ton.

However, the price of polyester staple fiber and viscose staple fiber has been soaring in recent years.

On the 19 day, the price of 1.4D direct spun polyester staple in Shandong was 8200-8300 yuan / ton, and the higher price was 8600 yuan / ton, up 500-600 yuan / ton compared with 7600-7700 yuan / ton last week.

Jilu area 1.5D*38mm viscose staple fiber price of 15700-16100 yuan / ton, compared with last week rose 500 yuan / ton.

Other raw materials are soaring, and textile enterprises are worried that if the cotton is going up, will the textile cost be upside down? Will there be a shortage of high-quality cotton in the new year? The head of a textile enterprise said that the domestic cotton planting area increased by about 10% in 2017, but affected by the climate, the cotton growth is not good, the quality is affected or the yield is decreasing.

Therefore, the market is worried about whether the new year quality cotton will not be enough.

The high turnover rate of cotton reserves concerns whether the higher turnover rate will continue and whether there will be a looting phenomenon in the 1 months when the cotton auction is about to end.

In addition, the textile enterprises said that the joint application for cotton reserves will be extended for 1 months. Whether the government departments can meet the demand of textile enterprises will directly affect the market trend and need attention.

Today, the total output of cotton reserves is 30 thousand and 100 tons, of which 10 thousand and 400 tons are listed on Xinjiang cotton.

The turnover rate is as high as 89%, and the quantity of new cotton in the reserve cotton is still around 10 thousand tons.

In the near future, the warehouse receipts flow is faster, especially the effective prediction of the warehouse receipt's expiration.

In the past two days, the turnover rate of cotton reserves has been greatly improved, and enterprises are actively bidding.

In the short term, zhengmian's main contract is technically strong, and is expected to be strong.

It is not yet over, but the 709 contract is expected to continue to rise little because of low price reserves.

In the near future, Xinjiang cotton, which has come out of the stock market, has a turnover rate of 100% at about 10 thousand tons / day, with a general increase of over 1000 yuan / ton.

The industry forecast that the number of remaining reserves of Xinjiang cotton will be reduced, and whether the auction situation of Xinjiang cotton will be even more serious when the next round of rotation is coming out.

To sum up, the three major concerns of textile enterprises are not groundless. It is understood that many textile enterprises are buying new territories cotton and some of the real estate cotton have been boosted recently.

In addition, Zheng cotton leveraged to rebound, yesterday CF1709 closed at 15505 yuan / ton, completely out of the predicament.

Therefore, this year is expected to link new and old cotton at a high price.

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