Last week (January 3-7), the domestic cotton spot market remained stable, futures prices were strong and fluctuated, the operating pressure of downstream enterprises eased, and product inventories decreased. At present, textile enterprises are still very cautious in purchasing cotton, and there is no centralized replenishment behavior.
The center of gravity of Zheng cotton continues to shift upward after the holiday. Driven by this, the cotton spot sales quotation has increased compared with last week. The spot quotation of standard grade machine-picked cotton in Xinjiang warehouse is 22,500-22,700 yuan/ton, which is 200-300 yuan/ton higher than before the festival. The purchasing willingness of textile enterprises is still low, and purchases are concentrated on state-owned cotton and real estate cotton with price advantages.
According to feedback from downstream textile companies, cotton futures prices rose last week. Some weaving mills and traders in Guangdong, Jiangsu and Zhejiang began to stock up on a periodic basis. Domestic cotton yarn prices tentatively increased, and the confidence of textile companies has recovered compared with the previous period. The current price of carded 40-count pure cotton yarn is 29,200-29,400 yuan/ton, which is 400-600 yuan/ton higher than the previous period. The increase in cotton yarn quotations accelerated sales, but textile companies were calm before the holiday and were more cautious about cotton inquiries and purchases.
Last week, although orders from cloth factories and traders in coastal areas picked up, the continuity of orders needs to be focused on. The delivery time for orders at the end of the year is tight. Companies in Jiangsu and Zhejiang have been on holiday in mid-January, and their ability to receive orders is limited. Some small and medium-sized textile enterprises in Henan, Shandong and other places have gradually reduced their orders and plan to have a holiday around January 15. The purchase of cotton and other raw materials will also be postponed to around mid-February. Cotton yarn inventories of small and medium-sized enterprises in Jiangsu have gradually declined, putting pressure on business operations. Some large-scale textile enterprises and weaving factories are operating relatively stably, and the shipments of cotton yarn and gray fabrics are still relatively good, and the inventory is not high.
According to professionals, the overall production and sales of the cotton market remained stable last week. The rise in cotton prices to a certain extent was mainly due to the increase in foreign cotton prices, especially the increase in Indian cotton. Whether it was due to additional import tariffs or production reduction factors, Indian cotton The strong performance has boosted domestic cotton prices.
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