Special news from China Cotton Network: Recently, the Zheng cotton futures market has maintained a downward trend. Textile enterprises across Hebei Province are buying raw materials as they are used. However, after the futures market fell sharply on the 15th, local spot price transactions increased.
Since May 5, the price focus of Zheng cotton has shifted downwards. Textile companies are less willing to purchase raw materials due to weak market demand, difficulty in selling downstream products and companies experiencing losses. As the futures market showed a sharp downward trend on June 15, most of the cotton orders were sold at a certain price. Some companies temporarily lowered the price of pending orders, and the company’s psychological purchase price dropped further.
At present, high-grade Xinjiang cotton is more popular in the market. The basis price of resources with length and strength indicators above 30 is mostly around 1,000 yuan/ton. The basis price of “double 29” and above is mostly 500-700 yuan/ton.
The domestic epidemic situation has stabilized and the transportation situation has improved. However, the futures market has fallen below the 20,000 yuan/ton mark, which has put a certain amount of psychological pressure on industry insiders. Textile companies have remained cautious about procurement.
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