According to feedback from several cotton spinning companies in Shandong, Jiangsu, Henan and other places, the quotations of Xinjiang long-staple cotton from warehouses inside and outside Xinjiang have increased slightly since early August, with the quotations of grade 137 (breaking strength 40-43cN/tex) reaching 27,000-28,000 yuan/tex. tons; the quotation price of grade 336/337 has also risen to 25,500-26,000 yuan/ton, which is not much different from the net weight quotation of Egyptian cotton Jiza 94 after customs clearance at major ports such as Qingdao and Zhangjiagang.
According to industry analysis, although recent inquiries and transactions of domestic long-staple cotton have been relatively light, mainly due to the rigid needs of large and medium-sized textile enterprises, the supply of long-staple cotton is relatively small (so far, PIMA cotton from China’s main port is bonded, customs cleared, the United States/Israel and other origins) resources are few). In 2023, the planting area of long-staple cotton in Xinjiang and the United States will decline significantly (according to the ICAC report, the PIMA cotton planting area in the United States may decrease by 40% year-on-year in 2023, coupled with the positive factors such as concerns about yield decline induced by high temperature and drought, traders The sentiment of rising prices and reluctance to sell still exists objectively. In addition, this week, the main CF2401 contract of Zheng Cotton was backed by 17,000 yuan/ton, and once recovered the integer mark of 17,400 yuan/ton, which also made traders holding long-staple cotton spot stocks have a high selling sentiment.
A long-staple cotton operating company in Changzhou, Jiangsu said that the quotations for high-count yarns of 50S and above in Foshan, Guangdong, Nantong, Jiangsu and Lanxi, Zhejiang have recently increased slightly. As the cotton spinning industry is about to enter the “Golden Nine and Silver Ten” peak season, some weaving factories in coastal areas, Middlemen have started a small-scale replenishment mode, which has improved their ability to bear and digest the price of long-staple cotton.
Since June, the supply of both imported long-staple cotton and Xinjiang long-staple cotton has been relatively low. Cotton spinning mills spinning medium and high-count yarns generally have low raw material inventories. It is expected that the enthusiasm for inquiry and purchasing will pick up in August and September. The company said that considering that the U.S. PIMA cotton production will be significantly reduced in 2023/24 and the export capacity will decline significantly, textile companies that are in urgent need need to pay more attention to Egyptian Giza cotton and Xinjiang long-staple cotton. The long-staple cotton from other producing areas is too small and difficult to Solve the problem.
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