Is Xinjiang Cotton Ginning Plant Ready For Market?

As of August 19, Xinjiang had no new confirmed cases of new epidemic for four consecutive days, and the situation of epidemic prevention and control in the autonomous region continued to improve and was further consolidated. By the end of August, the new cotton year is about to enter. The cotton harvest and processing in Xinjiang closely affect the heart of the industry. Under the epidemic situation, the new cotton will be on the market soon. Are the ginning plants in Xinjiang ready?

Since Xinguan epidemic was confirmed in Xinjiang in the middle of July, strict personnel flow control measures have been implemented immediately, which has affected cotton farmers' field management work less, but the preparation work of local cotton ginning plants is inevitably affected. It is understood that in previous years, preparations for the maintenance and repair of ginning plants in Xinjiang were generally carried out from the beginning of August. If there are plans to upgrade and transform the equipment, the preparation will start in June. However, due to the impact of the new crown epidemic, the maintenance time of the ginning plants is generally delayed, especially for the manufacturers who use a large number of mainland technicians. In addition, it is understood that the situation of new production lines in Northern Xinjiang this year is more prominent, which puts forward higher requirements for the number of technicians, and the shortage of technical workers has become a problem to be solved urgently for various ginning plants.

A local senior cotton personage told reporters that this year, the enterprises that planned to produce in Xinjiang Baotou factory completed the contract work from May to June. As the domestic cotton price fell sharply to the 10000 yuan mark in the early stage, some contractors were optimistic about the cotton price in the post epidemic era, believing that the acquisition of low-cost seed cotton in September was a profit opportunity. In May, the number of contracting plant plans increased sharply, which led to an increase in the cost of contracting plants. According to a person who has been working in Beijiang for a long time, the cost of the contract factory was 1.7 million yuan last year (1.5 million leasing + 200000 labor), and this year the cost of contracting the same ginning plant has risen to 1.9 million yuan.

However, contrary to what the contractors thought at that time, the complexity and uncertainty of Xinguan epidemic situation were daunting. The overseas epidemic situation was still grim, and the domestic downstream consumption did not significantly improve, which led to the optimistic expectation of these contractors from strong to weak. The person in charge of a cotton ginning plant in Karamay said that although there are worries about the increase of production lines and the market occupation this year, the current Xinguan epidemic situation has dominated the market development, and there are still about 1 million tons of old cotton inventory in Xinjiang. Due to the superposition of multiple factors, the purchase will also follow the market. As for whether there is a measurement standard for this year's purchase price, the person said that he would participate in the market acquisition smoothly and try to avoid the situation that seed cotton prices opened low and went high due to rush collection. However, the golden period of acquisition is only more than 20 days. Under such a changeable situation, capital preservation is the first.