According to a survey of some small and medium-sized cotton textile enterprises in Henan, Shandong, Jiangsu and other places, the inventory of cotton yarn with counts of C40S and below has increased to varying degrees. Although there is still a certain distance from the warning line, the inventory of yarn mills and weaving mills has increased to varying degrees. Uneasiness continues to rise.
The new cotton sales quotation in 2021/22 is significantly higher than the enterprise’s ability to bear, and it is necessary to continue to cool down. Zheng Cotton CF2201 contract consolidated in the range of 21,000-21,500 yuan/ton this week, showing signs of peaking and stabilizing. As Southeast Asian countries restart their cotton textile industry, orders from brand companies and retailers in Europe and the United States are once again returning to India, Vietnam, Bangladesh, Pakistan and other countries, making it more difficult for domestic companies to receive medium- and long-term orders.
In order to alleviate the financial pressure on small, medium and micro enterprises (including cotton textile, clothing and other enterprises) and protect market liquidity, the scale of reverse repurchases has been gradually increased. According to statistics, in the past six trading days as of October 27, the central bank’s overall reverse repurchase scale reached 900 billion yuan, achieving a net investment of 750 billion yuan; on the other hand, the State Council has provided tax deferrals of 200 billion yuan to small, medium and micro manufacturing enterprises to help enterprises. Solve difficulties and prevent commodity price increases from being transmitted to downstream industries. At the same time, the daily listing quantity of the first batch of central reserve cotton in 2021 will remain above 30,000 tons, and measures such as strengthening supervision and cracking down on hoarding and speculation of cotton reserves by trading companies will be implemented to meet the cotton needs of cotton spinning enterprises, promote the smooth operation of cotton, and maintain market order. . </p
