According to feedback from some ginners and cotton traders in southern Xinjiang, the contract price of Zheng cotton CF2109 has fallen below 15,000 yuan/ton in the past week or so, and textile enterprises are mainly purchasing at point prices (the enthusiasm for restocking is also higher than that of 2 and 3 month down). Due to the “fixed price” cotton resources in Xinjiang are not only scarce but also the prices quoted by cotton companies are relatively high, the market shipments are relatively deserted. In sharp contrast to the low enthusiasm of textile companies for inquiry and purchasing goods, cotton traders, futures companies, etc. have very sufficient resources on the shelves, and generally have certain discounts, and the characteristics of the buyer’s market are outstanding.
On April 13-14, the 2020/21 “Double 28” machine-picked cotton quotations in Henan, Shandong, Jiangsu and other inland warehouses were concentrated at 15,200-15,350 yuan/ton (due to specific quality indicators, storage warehouses , there are differences due to different impurity content). The delivery price of “Double 28” machine-picked cotton in the southern Xinjiang supervision warehouse is 14,850-15,050 yuan/ton (the seller bears the truck transportation fee). The price difference between cotton prices inside and outside Xinjiang is about 300-400 yuan/ton, which has remained stable for more than half a month.
At present, both the cotton market in Xinjiang and outside Xinjiang are showing a phenomenon of low price and low market value. The raw material procurement of small and medium-sized textile mills still adheres to the principle of “see more, move less, buy as you use”. While minimizing the occupation of cotton, polyester staple fiber, viscose staple fiber and other raw materials on working capital, it also increases cotton yarn, blended yarn and other raw materials. Increase the sales of yarn and other products, speed up the recovery of payment, and ensure the normal operation of the enterprise.
Cotton supervision warehouses in Aksu, Korla and other places reported that after April 5, the growth momentum of Xinjiang cotton truck shipments suddenly slowed down, and some warehouse points dropped significantly. The reasons analyzed by the industry are mainly as follows: First, the Xinjiang cotton railway freight rate has been reduced again, and the proportion of “road-to-rail” has increased significantly. Since April 8, the freight prices of lint boxcars sent by Urumqi Railway Group Company’s freight centers to various bureaus in the mainland have dropped by 15-40%; secondly, since late March, cotton traders and futures companies have “stepped down” in Xinjiang cotton procurement The phenomenon of “braking” has increased; thirdly, after restocking in mid-to-late March, the cotton inventory of mainland cotton spinning mills has generally expanded to 20-30 days (some spinning mills have raw material inventories of 2-3 months). It is difficult to have major inquiries before the end of April. Price, purchase action. </p
