According to feedback from cotton textile enterprises in Shandong, Henan, Anhui and other places, due to the fact that since last week, the price of Zheng Cotton CF2201 contract has continuously broken through the integer mark (the intraday low of 20535 yuan/ton on November 30), and the market price of 21000-22000 compartments has been completely opened. Due to the impact, the procurement of downstream weaving and fabric companies and cotton yarn middlemen has significantly slowed down or even been suspended, and some contracts in October/November may face implementation difficulties.
A medium-sized cotton spinning company in Dezhou, Shandong Province said that cotton futures have fallen sharply (the main contract of Zheng Cotton has retreated by more than 1,200 points in less than a week). Such wide fluctuations make it difficult for cotton mills to handle. On the one hand, it is difficult for cotton mills to provide customers and buyers with Quotation. If the price of cotton yarn is not adjusted or the adjustment is relatively small, customers will inevitably be lost; the decrease in cotton yarn is too large, but the cost of raw materials such as cotton in the warehouse is very high, and you will lose money if you are not careful; on the other hand, if the quotation of cotton yarn is lowered, execution has not started Or unfinished contracts are difficult to deal with, and customers have strong demands for price reductions and contract attachments. In addition, the main contract of Zheng Cotton has been reduced by more than 1,000 points, and the price of cotton yarn has to be adjusted.
Judging from the survey, due to the fact that some small and medium-sized cotton spinning mills have received new orders since late October and have relatively light shipments, the accumulation of cotton yarn has accelerated significantly compared with September/October. Several companies in Henan and Shandong reported that the inventory of OE yarn and cotton yarn with count below C40 has begun to sound an “alarm”, and they have plans to reduce prices and sell goods in the short term, and speed up the recovery of payment. Due to the wide range of cotton futures oscillations, downstream companies are in a wait-and-see mood. Based on the current cotton spot price, spinning profits are low or even upside down; coupled with the lingering domestic and global epidemic, high shipping costs, and container Restricted by many factors such as tension, some cotton textile factories are expected to take an early holiday before the Spring Festival. Regarding cotton yarn quotations, cotton spinning mills believe that they need to be lowered several times and tentatively, and it is impossible to lower them to the point at one time, so that they will eventually be in line with the psychological expectations of downstream buyers.
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