Heze, Shandong: Cotton Mills Are Difficult To Accept The Rise In Cotton Prices.

At the beginning of June, the national cotton market monitoring system, the Heze monitoring station, visited several textile enterprises and a large dyeing factory in Shanxian County, Heze, Shandong. Through the communication with the responsible person of the enterprise, it was learned that the knitting yarn 32S and 40S were running faster. The past 2 months were the peak season for the sale of the specification cotton yarn.

It is understood that these textile enterprises use Xinjiang cotton as the main reason, because the short staple rate of real estate cotton is high, and very few enterprises only use it as cotton blending. At present, raw material inventory is between half a month and 1 months. The textile enterprises visited generally agreed that the price of cotton yarn has been rising near the cost line in the current textile market. If the price of cotton is increased by 12000 yuan / ton, the price of raw materials to the factory will be 12500-13000 yuan / ton. With the increase of the cost of cotton, but not to the downstream yarn prices, textile enterprises generally say that the price of raw materials is difficult to accept at present.

It is understood that at present, there are fewer enterprises to purchase cotton raw materials, most of them are tight with existing stock production, combined with futures and cotton yarn market before making a decision. A cotton trader introduced that as the current price of zhengmian futures rose, the number of withdrawals of spot prices increased significantly, and the downstream customers turned to the spot market to purchase the one price resources, while waiting for the futures prices to fall and then buy the spot price.

From the head of a large dyeing factory, we know that the main factory is processing cotton printing and dyeing business for its customers. Most of them are processed by customers, and a few of them sell directly printed lint. The proportion is 6:4. Due to the influence of the epidemic situation, the order of the dyeing factory plummeted, and the current order volume was reduced by about 50-60% compared with the same period in previous years. It is understood that the proportion of domestic exports of colored textiles accounted for 70%, domestic sales accounted for only 30%, although the domestic consumer market has improved, but the start-up of foreign markets still takes time.