Although the recent increase in Zheng Cotton’s CF2301 contract has reached 15.91%, the cotton spot basis quotation and “fixed price” increase are significantly weaker than that of Zheng Cotton. For example, the quotation of “Double 28″ in Xinjiang’s warehouse has only increased by about 1,200-1,500 yuan/ton. , while the increase in cotton yarn quotations was even weaker, with only some companies tentatively raising their prices by 300-500 yuan/ton. On the one hand, Zheng Cotton’s contracts have a short increase time and a large increase. Cotton spinning mills need time to make decisions, and are worried that blind increases will trigger terminal resistance and cause customer losses; on the other hand, due to the lack of sufficient new order support, cotton spinning mills are difficult to effectively ” “Inventory”, the confidence of cotton yarn to rise needs to be restored.
Some textile companies judge that the domestic cotton supply exceeds demand is obvious, and the rebound of Zheng cotton is not sustainable. There is a high probability that the price will drop to 15,000 yuan/ton and below in the near future. Caution must be exercised when raising quotations for cotton yarn, gray fabrics, etc., otherwise it is likely to ” Shooting yourself in the foot.”
As the main contract of Zheng Cotton enters the 15,500-16,000 yuan/ton range, the “paper” profits of cotton spinning mills have been swallowed up. The recent continuous high-temperature and hot weather in Central China and East China and the combined impact of the escalation of epidemic prevention and control in some provinces and cities have resulted in the proportion of production reductions in small and medium-sized yarn mills and weaving companies still increasing (some textile companies have been on holiday for more than half a month), and cotton demand has not yet met. It’s time to bottom out and rebound. A textile company in Jiangsu said that since July and August, cotton yarn sales have not only required one-by-one negotiation, but also almost all export orders require manufacturers to provide proof of non-Xinjiang cotton. In addition, orders are mostly “short orders and small orders”, and textile companies have accepted The willingness to place new orders is also not strong.
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