Short Term Cotton Market Purchase And Sales To Improve Cotton Market Demand Began To Warm Up?

Since the past half month, cotton purchase and sale has improved significantly. The purchasing power of mainland enterprises has been rising. Xinjiang producers have offered positive quotations, and the market has been showing signs of warming for a while. Does this sign indicate that the cotton market demand has improved?

First of all, in from January 7th to 9th, the Chinese and US delegations held consultations in Beijing. Although the negotiations did not have clear results, the mentality of the cotton merchants improved.

In addition, Zheng cotton prices also showed a steady upward trend, with short positions becoming more cautious, which has won a good opportunity for short-term spot sales.

Secondly, limited to the high quality resources in the mainland, most of them are low strength Chen cotton, which stimulates the mainland traders to buy Xinjiang new cotton enthusiasm.

At the same time, considering the long span of Spring Festival holidays and Xinjiang cotton delivery time, some mainland textile enterprises opened the last rotation library before the festival for the raw cotton consumption after the preparation.

Therefore, the recent market inquiry procurement increased, some cotton enterprises in Xinjiang increased the offer or reduced the bargaining space.

According to statistics, Hami, Changji, Kuitun and other northern Xinjiang cotton picked up upward 50-100 yuan / ton, Akesu, Korla and other southern Xinjiang hand picked cotton did not raise the offer, but the enterprise reluctant to sell mentality is strong, individual enterprises even began to bet.

Judging from the understanding of textile enterprises, the demand for replenishment is still limited, and most textile enterprises will start off this the 25th day of the twelfth month of the Chinese lunar calendar, ahead of schedule.

Thus, it is difficult to make a strong support for the improvement of the demand for the whole cotton market in the short term.

In addition to the improvement in the purchase and sale of domestic cotton, the number of imported cotton has also increased in recent years, mainly due to the widening of the cotton price difference between the inside and outside in recent years, and the obvious advantage of the price advantage of the outer cotton is also obvious. In addition, the sliding duty rate has been lowered, and the cost of the cotton merchants' clearance has decreased.

According to the feedback from importing cotton traders, the import sales of imported cotton are still affected by the fluctuation of the external market.

The fundamental reason is that Sino US trade development is still the most important factor.

Therefore, it remains to be seen whether the purchase and sale of imported cotton will continue to keep warm.

Therefore, the main reason for the short term improvement of cotton market is the pulling up of some textile enterprises' stages, and the macro atmosphere of Sino US consultation.

Since the launch of new cotton, the number of Xinjiang cotton has been on the low side, the social inventory is at a high level, and the supply pressure of the market remains to be released, so we must not be blindly optimistic.