The financial pressure faced by cotton companies can only “turn eastward”
Although the price difference between high-quality foreign cotton and domestic Xinjiang cotton has widened to 2,000-3,000 yuan/ton, due to limited cotton import quotas, some cotton textile companies hope that the real estate cotton will be sorted and put on the market quickly to meet the demand for spinning low-count yarns of 32S and below. needs, and at the same time, it is hoped that Xinjiang cotton will be moved to the mainland as soon as possible, and the control of machine-picked cotton quality and ginning quality will be increased, giving cotton-using enterprises the opportunity to choose and purchase through multiple channels.
Cotton traders in Qingdao, Zhangjiagang, Guangzhou and other places reported that during the National Day, the inquiries, inspections and shipments of high-grade bonded Australian cotton and 2015/16 US cotton were particularly active, while cotton from other origins was There were almost no deals.
On the one hand, the Australian cotton spot is basically sold out, and the supply is only concentrated in the hands of a few foreign businessmen and large foreign cotton operating companies. The quality and spinnability are compared with the 2015/16 US cotton. And West African cotton, Brazilian cotton in 2016 is much better, especially the fiber length, strength and other indicators still have advantages over Xinjiang cotton in 2016/17.
On the other hand, the price difference between Australian cotton and American cotton, Brazilian cotton, etc. has further narrowed, and it is cost-effective and favored by China’s large and medium-sized fabric companies and traders. Since early October, the CNF quotation of bonded Australian cotton has been 2 cents/pound higher than C/ASM and SM Brazilian cotton and 2.20 cents/pound respectively, and nearly 2 cents/pound lower than the same grade of 2015/16 Uzbekistan cotton. Foreign businessmen and traders are more willing to ship goods, and the price expectation gap between buyers and sellers is particularly small.
Fabric companies in Jiangsu, Henan, Hebei and other places said that although the quotations of carded yarn and combed yarn with counts of 32S and above have increased by 300-500 yuan/ton since late September, The increase is still significantly behind the increase in domestic cotton prices. Instead of being relieved, the cost pressure on yarn mills is getting bigger and bigger. They are forced to use the cotton import quota within the 1% tariff in 2016 in advance (the focus is on purchasing spot goods at ports or spot shipments in Australia). Cotton, American cotton transition).
Although a certain amount of state-reserved cotton was “snatched” in September, due to quality, grade and other issues, it is necessary to purchase 2016/17 Xinjiang hand-picked cotton or bonded high-quality machine-picked cotton as With cotton, yarns with counts of 40S and above are spun. However, the cost of cotton in Xinjiang is too high and the cost of road transportation has increased significantly. The number of goods leaving Xinjiang has dropped significantly compared with the previous two years. Out of necessity, textile companies can only “turn around and head east.” “.
In addition, after entering October, a large number of domestic cotton textile mills and cotton enterprises are facing increasing financial pressure, such as repaying loans (repaying first and then borrowing), settling various material expenses, Paying worker bonuses, etc. has forced textile companies to enter the destocking state of spinning yarn and natural cotton fabrics in advance. They must not only cut off cash flow but also ensure production. They choose LC90 or even longer to purchase imported cotton as insurance.
“The cotton market does not support the rise in cotton prices, and production costs are upside down.” “This year’s peak season is not prosperous, and the market is mostly on the sidelines.” Faced with the market environment in which cotton prices continue to rise this year, many fabric manufacturers Industry insiders told reporters this. Industry insiders said that at present, companies mostly rely on stockpiling cotton for production, and those without inventory have to stop production and wait and see. Taking Henan, the province with the second largest spinning yarn output in the country, as an example, the operating capacity during the golden autumn peak season may be only half. Analysts believe that the high price of new cotton is related to the sharp shrinkage of cotton planting area this year. It is estimated that this situation will be alleviated next year.
AAAEHRYJUTUTHYER
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
