Xingtai, Hebei: Cotton companies are opening scales one after another, and demand from textile companies has weakened

It is currently the season for cotton wadding. The recent rainy weather in Xingtai, Hebei Province has affected cotton wadding to a certain extent.

Recently, various local cotton companies have successively opened scales to purchase seed cotton. However, due to the current weakening demand for raw materials from downstream textile companies, cotton companies are cautious in purchasing.

Since some companies in Xinjiang opened scales, they have been mainly purchasing cotton cotton, and the purchase price of seed cotton is also at a relatively high level. As soon as the scales were opened, industry insiders were full of worries. As a result of the recent correction in the futures market, purchase prices and cottonseed quotations have declined to varying degrees. However, some people believe that the price at the initial stage of scale opening is of little significance, so most companies hope that the market will develop stably after a large amount of seed cotton is launched.

At present, the inventory of cotton yarn of local textile enterprises has increased, and the enterprise’s raw material inventory has basically remained at 1-2 months. Currently, the company continues to mainly purchase and reserve cotton through auctions. Although the Zheng cotton futures market has declined, the reserve cotton market has maintained a 100% transaction rate, and the average transaction price has not fluctuated much. On the other hand, the market’s importedcotton resources have declined as textile companies complete customs clearance. Currently, companies’ spot purchases of raw materials are mainly concentrated on state-owned cotton reserves and imported cotton. It is understood that some companies have booked cotton for the new year in the form of futures + basis, and new flowers will be available in stock after the National Day. By then, with the large-scale launch of seed cotton and further increase in resources, the cotton market is expected to stabilize.

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