Cotton Spot Price Rises Slightly, Textile Enterprise Capital Pressure Increases

With the arrival of the new cotton year, the seed cotton picking work has begun in succession. With the slow recovery of downstream consumption, the cotton spot price shows a stable upward trend, some people are optimistic about the future market, and a small number of cotton enterprises in some regions will open scales to purchase in the near future. The rise of cotton market has put greater pressure on textile enterprises. Although the sales of cotton yarn have improved, the payment collection has a certain accounting period, and the enterprise has greater pressure on operating funds.

In recent two days, Zheng cotton futures market has slightly decreased, cf2101 contract is between 13000-13100 yuan / ton, and some enterprises adjust the basis quotation with the replacement of contract. At present, the transaction price of enterprise point price is above 31 grade "double 29 / 30", and the transaction price of Xinjiang cotton is between 13050 and 13100 yuan / ton. "Double 28" cotton transaction price in 12800-13000 yuan / ton.

In the early stage, due to the strict control of the epidemic situation in Xinjiang, it was difficult to ship the vehicles. At the end of August, the traffic volume was almost zero. On the evening of September 1, the Party committee of Xinjiang Uygur Autonomous Region held a video conference to announce that normal production and living order would be fully restored in Xinjiang without relaxing the prevention and control measures of normalized epidemic situation. It is understood that with the decline of the level of prevention and control, Xinjiang cotton automobile transportation will gradually return to normal, which is conducive to the stability of the market to a certain extent.

At present, although the orders of textile enterprises have improved, compared with the business operation, the orders are still insufficient. The cotton yarn and cotton cloth manufacturers generally have the problem of fund shortage. Cotton yarn sales manufacturers say that in order to promote the sales of products, the enterprises accept the payment back in a certain accounting period. As a result, the prices of raw materials are gradually rising, the payment is relatively slow, the profit margin is further compressed, and the pressure of enterprise capital is increased.