Hebei Dongguang: Many Enterprises Have Already Had A Holiday Cotton Price "Empty Rise"

As of January 13th, the spot price of seed cotton and lint continued to rise in Dongguang County, Hebei, but because most of the ginning plants had been on holiday, the market showed a "empty inflation" phenomenon.

According to a market source, up to now, the main linen of the local cotton seed is 35%-37%, and there are fewer than 39% seed cotton, and the quality of seed cotton has dropped sharply, mainly due to mixed grade cotton and stiff cotton. The price of the cotton mill is concentrated at 2.75-3.00 yuan / Jin line. Besides, the purchase price of seed cotton with excellent quality reaches 3.30 yuan / jin (40% of lint and 10% of moisture regain), up 0.05 yuan / Jin compared with January 10th.

There are three reasons for the rise of seed cotton: first, the impact of the bullish atmosphere on the market; the ginning mills still in acquisition attract resources with high prices; second, the cotton seed market continues to rise, reducing the cost of cotton; third, the quantity of seed cotton is small, and the products are scarce.

According to the briefing, there are only 1 or 2 types of 400 ginning plants in Dongguang County. The spot price of local lint rose again. As of January 13th, the highest price of local high-quality lint reached 14000 yuan / ton (gross weight, pick-up and tax), up 200 yuan / ton compared with January 10th.

Although the price has gone up, there has been little turnover, and no feedback has been recorded since January 10th. According to feedback, most of the downstream cotton mills will officially enter the holiday in January 15th, so the reasons for purchasing are no longer available.

Why is there no increase in lint?

1, the collectives are expected to rise. A lot of ginning plant owners said that with the improvement of Sino US trade, and the reduction of cotton production in 2019, cotton will have a great turning point in 2020.

2, the external market has risen, Dongguang County enterprises are catching up. It is understood that since January, whether it is cotton or Xinjiang cotton gains are relatively large, Dongguang enterprises will also increase the price.