According to the National Cotton Market Monitoring System, as of December 9, the national new cotton processing rate was 74.4%, a year-on-year decrease of 5.4 percentage points, of which 75.6% was processed in Xinjiang; the national new cotton sales rate was 11.2%, a year-on-year decrease of 17.6 percentage points. It can be seen that the sales progress and processing progress of new cotton this year are slower than the same period last year, and the decline in sales progress is even more obvious.
According to analysis by cotton experts, the slow sales progress this year is mainly due to the following reasons: First, Xinjiang cotton matures late, and large-scale picking and sales are later than the same period last year; second, this year’s reserve cotton rotation takes a long time, the rotation volume is large, and the transaction rate It is also high, which reduces the purchasing intensity of downstream companies for high-priced new cotton; third, the price of new cotton this year is at a historical high for the same period. Faced with the high price of new cotton, companies are extremely cautious in purchasing. Some companies will face losses if they spin according to the new cotton price. And with such a high price, there are also great risks, so companies can basically buy whatever they need and maintain normal production; fourth, the orders and profits of companies this year are far worse than the same period last year. Sales are becoming more difficult and finished product inventories are at a critical level. During the period of inventory shortage, companies did not dare to purchase new cotton in large quantities.
The slow progress of new cotton sales will increase the pressure on the market outlook. After all, the total cotton output is fixed. If the consumption progress is slow in the front, only the later sales progress can be accelerated to keep the inventory at the same level as last year. Once the later sales progress is not caught up, On the market, inventories continue to increase, which will continue to put pressure on the market outlook. About to enter 2022, the cotton spinning industry will gradually enter the peak production season. It will be seen whether the consumption speed can be accelerated.
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