Textile Enterprises Are Highly Concerned About Actively Participating In The Reserve Of Cotton Wheel

Recently, the price of domestic cotton futures market has rebounded strongly, and the spot price of cotton has also risen. Downstream viscose enterprises and viscose staple market which have an alternative effect on cotton yarn have also been improved.

Wang Jiayu, chairman of Jiangsu Nantong Shuang Hong textile company, said: "because of the continuous low innovation of cotton prices, who will lose money in large inventories, many enterprises will be very low in inventory."

He said that the raw material cost advantage of cotton textile enterprises needs a certain pmission time, and the cotton that has been put into production is purchased in the past. At that time, the price of cotton is relatively low, and the cost is relatively low. The current market cotton prices are higher, and the selling price of products is higher. This has resulted in additional benefits from raw material costs. In the early days of cotton prices rising, enterprises can obviously feel the benefits turn better.

But the benefits of this price increase are only temporary, if domestic.

Continuing to rise is not a good thing for China's export oriented enterprises.

Huafu color spinning related responsible person said that at present, the company's cotton inventory in 1~2 months, the long-term rise in cotton prices will lead to an increase in the cost of the company's products, if only the domestic cotton prices rise, and in the case of large gap with the international cotton prices, then will affect the international competitiveness of the company's products.

This

The export of cotton is relatively large, and it also increases the willingness of cotton textile enterprises to auction cotton reserves.

In particular, the first day of the auction, all the imported cotton resources were traded. The starting price of the bundles of Jiangsu cotton was 11080 yuan / ton, the paction price reached 13820 yuan / ton, the premium was 2740 yuan / ton, and the bid price was 137 times, which shows that the imported cotton resources are very popular.

The reporter interviewed many cotton textile enterprises in Henan, Jiangsu, Shandong and other places. The enterprises all expressed their participation in the auction, especially for high quality cotton resources, and the enterprises were very willing to buy.

Zhang Quanfa, chairman of Henan Yongan textile company, said: "enterprises have been paying close attention to the storage cotton rotation. Therefore, on the first day of May 3rd, the enterprises competed for 100 tons of Xinjiang cotton. Then, the enterprises will continue to participate in the auction of high quality cotton according to the order situation.

The turnover of the current round of cotton reserves is up to the previous round.

In stark contrast.

In 2015 and August, the output of cotton reserves came out. Although the timing was very scientific, the cumulative total output was only 63411.74 tons, accounting for about 6.34% of the total output of the total output (planned output of 1 million tons), and the result of the paction was hardly optimistic.

The reason for the turnover of cotton reserves is gratifying. According to the industry analysis, there are three main factors.

First, the market demand is relatively large.

The resources in the spot market are few, especially the quantity of imported cotton is limited, and the inventory of textile enterprises is low. Most enterprises say that they are "waiting for the rice pot". In addition, the quantity of imported cotton wheels is limited, and some spinning enterprises want to get high-quality cotton as soon as possible.

The two is that the reserve cotton auction is all re examined, and the inspection weight of the warehouse is also being re examined, so that the problem of heavy losses in textile enterprises has been solved. The quality and weight of cotton are relatively high. This has led many enterprises to relax their hearts and actively participate in the auction work. Three, there is no big restriction on bidding qualification, allowing enterprises with complete procedures to participate in the auction, and the participation of powerful traders has increased the enthusiasm of auction to a certain extent.

This round of cotton reserves has weakened the price advantage of imported cotton, and it seems that enterprises have seen the dawn of China's cotton textile industry.

Earlier, some people in the industry believed that China's cotton production is decreasing, and that the rotation of cotton reserves will become normalized, so that China's cotton supply pattern will begin to change.

The narrowing of cotton prices at home and abroad also reduces the advantage of imported yarn.

Apart from the fact that imported yarn has a small profit in addition to combed yarn, the price of other cotton yarns is not competitive, and the price of chemical fiber is also rising.