According to feedback from cotton textile companies in Henan, Hubei, Jiangsu and other places, as the end of the year approaches, mainland small and medium-sized cotton textile companies continue to weaken their inquiries and purchases of lint (large-scale textile companies replenish their inventories are basically normal), but domestic cotton basis quotations, The reduction in fixed price is limited and does not closely follow the trend of Zheng cotton. Cotton processing enterprises and traders have a strong atmosphere of raising prices and reluctant to sell.
In the past two days, the quotation price of “Double 28” machine-picked cotton in Henan, Shandong, Jiangsu and other mainland warehouses is 15,500-15,700 yuan/ton (basis quotation), and the quotation price of “Double 29” machine-picked cotton is 16,000-16,200 yuan/ton Yuan/ton, both higher than the same indicator in Xinjiang’s regulatory warehouses of 550-700 yuan/ton, and the price difference between cotton prices inside and outside Xinjiang has slightly expanded compared with December. Some mainland warehouses said that since mid-December, Xinjiang cotton inquiries and shipments in 2019/20 and 2020/21 have shown signs of recovery (mainly based on basis prices and pending orders). On the one hand, for more than half a month , Xinjiang’s cotton road transportation volume continues to decline (affected by many factors such as epidemic prevention and control, weather, and freight increases); on the other hand, inland warehouses can meet the requirements of textile enterprises to “buy as you use”, and it is not possible to pick up goods in multiple batches under one contract. Rarely (some cotton sales companies even allow credit sales for 1-3 months).
A textile company in Tai’an, Shandong Province said that from the perspective of employment, epidemic prevention and control, and orders, the surrounding large and medium-sized cotton textile companies have recently replenished raw materials mainly through the following channels: First, the inland warehouses in 2019/20 and 2020/21 Xinjiang cotton; the second is US cotton, Indian cotton, Brazilian cotton, etc. that are bonded at the port or have cleared customs. Among them, the foreign cotton spot quoted in RMB is the focus of inquiry and procurement; the third is Zheng cotton’s main contract is less than 15,000 yuan/ton, which is delivered to the mainland The fourth is to purchase real estate cotton with quality indicators of 3128/4128 and above, which can be used as cotton for spinning high-count cotton yarn of 32S and above. </p
