According to feedback from the cotton supervision warehouses in Urumqi, Kuitun, Aksu, Korla and other places, Xinjiang cotton railway and road shipments have continued to be at a high level since March. Railway wagons in key areas such as Shandong, Jiangsu, and Henan are fully arranged, and there are also some automobile transport vehicles. nervous.
Several warehouses in southern Xinjiang said that in early March, the cotton road shipment volume was comparable to the railway shipment volume, and since late March, it has exceeded the railway shipment volume. Compared with the railway shipment volume, While freight rates are stable, road freight rates are in a state of continuous and repeated fluctuations. Since the end of March, road freight rates have rebounded slightly overall (about 10-30 yuan/ton), but truck freight rates in Sichuan, Guizhou, Yunnan and other directions have continued to be stable with a slight correction (mainly affected by the significant reduction in cotton cotton and civilian cotton shipments).
Why has Xinjiang cotton shipments increased significantly in more than a month? The author believes that there are mainly four reasons: First, the need for underground delivery in the CF2105 contract. As of the end of February 2021, most of Xinjiang’s tradable cotton resources have flowed into traders, futures companies and other intermediate links. Under the premise of 100% hedging, cotton companies need to choose between arbitrage and delivery. Due to various reasons such as large cotton inventory in delivery warehouses in Xinjiang, high loading and unloading pressure, and slow registration of warehouse receipts, moving warehouses to delivery warehouses in mainland China has become the choice of a large number of trading companies;
The second is to facilitate the sales of Xinjiang cotton in 2020/21. Due to various reasons such as epidemic prevention and control, mainland textile companies are less enthusiastic about purchasing directly from Xinjiang. Moving Xinjiang cotton warehouses to the main consumption areas is more conducive to sales;
The third is to facilitate the mainland Textile companies can buy whatever they want. Judging from the survey, since the CF2105 contract price dropped from 17,080 yuan/ton in late February, mainland small and medium-sized textile companies have successively replenished their stocks at the market price, and raw material inventories bottomed out and rebounded. Due to the need to report the flow direction in advance and the tightness of freight trains, road shipment has become an important choice for mainland textile enterprises and middlemen;
Fourthly, the current price difference between Xinjiang cotton of the same quality inside and outside Xinjiang is 300 RMB -400 yuan/ton, plus the direct subsidy of 500 yuan/ton for the transportation of Xinjiang cotton out of Xinjiang, the relocation sales will not be a disadvantage for cotton companies. </p
