Why Can'T You Make Up Your Mind To Purchase Cotton?

Recently, the overall market of domestic cotton yarn is weak and flat. Except for individual yarn sales, the sales progress of pure cotton yarn is average and the price is stable. In the blending field, the price of polyester cotton yarn is stable and weak, while that of rayon yarn is slightly weak.

Judging from the inventory of textile enterprises, most enterprises still maintain low levels of cotton raw materials. A person in charge of a textile enterprise in Xuzhou, Jiangsu, said that a batch of auctions would be held in the middle of this month National reserve cotton Since then, we have been waiting to see the market. At present, there are about 17 days left in cotton inventory, which is at a low level.

In addition, most textile enterprises in the Yellow River basin and the Yangtze River basin have 17-21 days of cotton raw material inventory, while larger enterprises have 30-50 days of cotton raw material inventory, which is 1-2 days more than that before the rotation of national storage cotton. However, from the situation in previous years (except 2016), the cotton raw material inventory is low.

But, buy cotton or not? Most enterprises are still hesitating. There are several reasons why we can't make up our minds to purchase:

1. Order profits are squeezed, and enterprises are unable to pay high cotton prices. The average transaction price of national reserve cotton is 14774 yuan/ton, or 15987 yuan/ton if you convert it into 3128 yuan. Is the price of national reserve cotton high at present? Compared with the era of high cotton prices, it is really not high. However, compared with the affordability of enterprises, the current price is really not low.

On the 23rd, a person in charge of an enterprise in Shandong gave an example Conventional yarn The sales progress is OK, and the orders can be basically maintained. However, taking Pushu 32S as an example, the current order price is about 23200 yuan/ton. However, the cost is around 23000-23100 yuan/ton, and the enterprise basically has no profit. If the profit concessions and shipping preferences given by the enterprise to the downstream are included, the enterprise is almost in a loss.

Therefore, most textile enterprises hope that the price of cotton will be lower, even if it is reduced by 300 yuan/ton or 500 yuan/ton, the life of enterprises will be easier.

2. Zheng Mian swayed, and the heart of the enterprise also swayed. Recently, Zheng Mian's continuous downward trend has made the whole downstream market full of wait-and-see mentality.

"Zheng Mian is a wind vane and a barometer, Zheng Mian Continuous decline, everyone dare not buy raw materials easily. " A market person said that, as a textile enterprise, the last thing we hope is that the cotton price will fluctuate significantly. Whether it is up or down, the enterprise does not hope. Zheng Mian's main 1705 contract is still fluctuating at 15300 yuan/ton. According to textile enterprises, whether Zheng Mian can stop falling and stabilize in the near future or rise is crucial.

If Zheng Mian can recover 15500 yuan/ton of lost land, what will be the trend of the prices of three major cotton resources: national reserve, spot and Zheng? To sum up, this year's textile enterprises are not active in auctioning for storage, cash conversion, purchase of real estate cotton and Xinjiang cotton spot are also not active. The key factor is the volatility of the market. When will this situation reverse?

As time goes by, it is expected that the market will pay close attention to the upcoming data of the actual planting area, the growth trend in the later period and the weather in the final harvest season. On the whole, it is necessary to have enough major natural disasters to completely offset the negative market effect caused by the expansion of cotton planting area, and pay more attention to market changes. 　　

For more information, please pay attention to the report of World Clothing, Shoes and Hats Network.