As the Spring Festival approaches, the number of textile companies shutting down for holidays continues to increase. The cotton market, which should have been calm, has once again become enthusiastic due to the surge on February 4. As of February 5, Zheng cotton has risen to a high of 15,610 yuan/ton.
Internationally, factors such as the smooth progress of the U.S. economic stimulus package and bullish forecasts from the U.S. Department of Agriculture and ICAC have brought optimism to the market. U.S. cotton and Zheng cotton rose in resonance, and market trading While the enthusiasm is high, the price difference between domestic and foreign cotton has narrowed, and the attention of industry insiders has increased significantly.
Currently, all ginning factories in Xinjiang have basically stopped working, and employees in Xinjiang are returning to their hometowns one after another. In addition, some areas in the country are affected by the epidemic blockade and control. Some drivers have gone home to celebrate the New Year, and lint has been exported. Vehicle prices in Xinjiang are high and difficult to find, which temporarily supports the price of seed cotton. As the Spring Festival approaches, downstream textile companies have shut down their operations for holidays, and the enthusiasm for market purchases and sales has gradually cooled down.
As for the market outlook, industry insiders said that under the premise of stable cotton supply and the gradual improvement of the epidemic situation, downstream demand still maintains a good momentum, and the raw material inventory of textile enterprises is basically at a low level. Cotton yarn is selling well, and orders will be maintained until at least February to March. Although the Spring Festival holiday is approaching in the short term and companies are taking more holidays, companies generally have a positive attitude towards the market outlook. </p
