Many Cotton Mills In The Mainland Do Not Stock Enough Raw Materials.

With Zheng cotton CF1703, CF1705 contracts fell below 14700 yuan / ton, 14800 yuan / ton and matching spot listing MA1703 contract closed to 14400 yuan / ton, Hebei, Henan, Shandong, Jiangsu and other mainland cotton textile factories and traders began to enter the market.

Analysis of the industry, on the one hand, as of December 26th, the total cotton inspection of the country was 3 million 662 thousand and 100 tons, but the real estate cotton was only 99 thousand and 300 tons, accounting for only 2.71%, so the CF1705 delivery warehouse will be mainly Xinjiang cotton, and on the other hand, it will be purchased from futures.

A series of troubles such as pportation, warehousing, short dumping and so on were omitted, and if the 14800 yuan / ton was fixed, the gross weight would be about 15100-15200 yuan / ton (the machine picked cotton was slightly damp). At present, the gross weight lifting price of the "double 28" machine picked up at the present warehouse is still 15600-15800 yuan / ton, while the 3128 cotton mill's delivery price is not less than 15200 yuan / ton (to the factory generally 15500 yuan / ton).

In addition, buying warehouse receipts from futures ahead of time and using low capital to lock high grade and high quality cotton resources are beneficial to cotton mills and traders.

A medium-sized textile manufacturer in Henan said that on December, 26-27 days, it had bought more than 500 tons of CF1705 contract. It is expected that the main contract of zhengmian will fall below 14500 yuan / ton under the pressure of the Spring Festival effect, the tight cash flow of cotton enterprises, the March cotton spinning and the uncertainty of the external commodities and policies. Therefore, we plan to buy another 1000 tons of May contracts between 14000-14500 yuan / ton, and the auction cotton can support the new cotton market in 2017.

From the survey, many cotton textile factories in the mainland

Raw materials inventory is not sufficient, generally 15-25 days, cotton distribution mainly cotton, Xinjiang cotton and 2016 cotton reserves in the year round; some large factories with quotas and high spinning yarns are Xinjiang cotton, imported American cotton and Australian cotton (both Chen cotton) and a small amount of real estate cotton, but the willingness of textile enterprises to replenishment from the spot market before the Spring Festival is not high.

On the one hand, the price difference between inside and outside cotton has increased to more than 2000 yuan / ton (in late 12 month S-6 1 5/32's CIF quotation is 76.5 cents / pound, 1% customs duty cost is about 13400 yuan / ton), and textile enterprises arrive in 1/2 month.

S-6 and EMOT have higher expectations; on the other hand, in March 6th, the low, medium and high grade quality of the cotton reserve wheel is fully covered. Cotton enterprises can auction at any time, pick up and use at any time, cotton mills and traders are worried about stock quilts, and the auction price forecast is generally around 14000 yuan / ton.

At present, the mainstream of grade 3128-29 hand picking cotton price is quoted at 15500-15800 yuan / ton, and the high quality and high price is 16000 yuan / ton.

Despite the gradual easing of pport pressure in the near future, the freight rate is difficult to drop, and the cost of moving to the mainland is still high. The high price of new cotton in the inland bank is still 16800 yuan / ton.

From this we can see that the demand is poor but the cost is high. Some enterprises say the cost of conventional yarn is upside down by 300-500 yuan / ton.

Some enterprises use Xinjiang cotton to match domestic cotton and national cotton, but the cost side is slightly restrained, but they are also on the profit and loss line, and the textile enterprises are in a difficult position.

With the end of the year, textile market demand or improvement is difficult.

It is understood that some parts of the cotton trade enterprises lack of confidence, at the end of this month, a steady decline of quotations 200-300 yuan / ton, but there are many textile stocks reserve, under the high cost of raw materials oppression, textile enterprises are naturally reluctant to return the offer, even if the high priced products for the downstream is still more difficult to undertake.

Therefore, textile enterprises are not active in purchasing raw material cotton, they are buying or selling, but they are more worried about the spot market.

For more information, please pay attention to the world clothing shoes and hats net report.