Recently, not only has the cost of cotton processing in Xinjiang been significantly inverted with the main contract price of Zheng cotton, but sales obstruction has spread rapidly among cotton companies in Xinjiang, and the sales confidence of some cotton companies has dropped significantly. The profits of downstream cotton spinning mills purchasing Xinjiang cotton spinning yarn in 2021/22 have also been greatly compressed. Weaving mills have reduced raw material purchases to maintain a balance between production and sales under the premise that product inventories are accumulated and profits are becoming more difficult.
Some cotton-related companies said that under the pressure of negative factors such as the lingering COVID-19 epidemic, the ever-increasing scissor gap between PPI and CPI, the gradual recovery of the textile industry in Southeast Asia, and the withdrawal of QE from European and American countries, all links in the domestic cotton spinning industry chain have to work hard to improve their internal skills. , lay a solid foundation and wait for the industry to pick up.
The author believes that the domestic sales market is expected to start before exports in 2022, occupying and consolidating the main position in the domestic market. The reasons include the following points: First, in the context of the central bank’s reduction in reserve requirements or interest rates, the pressure on funds (financing costs, etc.) in the textile and apparel industry will Second, China’s measures to stabilize growth continue to increase, and the domestic market and consumer confidence will gradually recover. The Central Economic Work Conference put forward the general tone of “stability” and pointed out that next year’s economic work must take stability as the top priority and strive for progress while maintaining stability. All regions and departments must assume the responsibility of stabilizing the macro economy, and all aspects must actively introduce measures that are conducive to economic stability. policy; third, the domestic epidemic “dynamic clearing” measures are appropriate, and the benefits far outweigh the disadvantages for cotton textile and clothing companies. Coupled with the significant increase in my country’s vaccination rate, the impact of the epidemic is expected to be fully weakened.
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