According to feedback from cotton spinning enterprises in Shandong, Hebei, Hubei and other places, in July not only the mainland cotton processing enterprises have stopped purchasing and processing seed cotton, but also the stocks of real estate cotton in various mainland warehouses for 2021/22 are relatively small or even very few, with many origins. For Gansu, there are few resources in the Yellow River Basin and Yangtze River Basin.
Industry analysis: On the one hand, the main contracts of Zheng cotton have plummeted recently, and the production and sales of real estate cotton processing enterprises have been reversed. In addition, it is less than three months before the launch of new cotton in 2022/23, so it is reasonable to reduce or stop the harvest; on the other hand, in 2021 /The amount of real estate cotton put into storage and public inspection in 2022 is still relatively low (as of July 10, 2022, the cumulative number of real estate cotton inspected by public inspections is 124,600 tons, accounting for 2.29% of the total national public inspection this year); plus 2021 Indicators such as the length and breaking ratio strength of real estate cotton in 2022 have increased significantly year-on-year. The impact of the strong substitution of Xinjiang cotton and imported cotton and the escalation of the ban on Xinjiang cotton imports by the United States and the European Union will make the sales progress of real estate lint cotton in 2021/22 more obvious. Faster than Xinjiang cotton.
Judging from the survey, most small and medium-sized cotton textile companies still prefer the model of picking up goods directly from the ginning factory, and are not used to picking up goods from mainland warehouses. First, most small and medium-sized textile companies purchase real estate cotton and directly inspect it at the factory. Negotiate price and delivery; second, purchase directly from the ginning factory, which reduces short-term delivery, warehouse “lump fees” and outbound costs, etc., which is more beneficial to reducing raw material costs; third, it can greatly shorten the time for raw material procurement , to meet the needs of “off-the-pot” workshop production, especially suitable for small cotton spinning mills that buy as they go and purchase according to orders; fourth, they do not participate in public inspections, and buyers and sellers mainly negotiate based on factory inspection results; and most ginneries allow partial Various settlement methods such as credit delivery, 1-3 month account period, acceptance bill, etc. are not 100% cash and spot, and the capital flow of textile enterprises may be temporarily relieved.
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