Recently, Zheng Cotton has received strong support at the Wanwu Pass, which is closely related to strong downstream demand. Although the epidemic continues to spread at home and abroad, the production and sales of textile companies after the third quarter of 2020 are indeed a major industry highlight. . In the short term, we need to pay attention to the contradiction between supply and demand to prevent large fluctuations in cotton prices.
As the Spring Festival approaches, in order to strengthen epidemic prevention and control, all regions have adopted strict prevention and control measures, which will have a short-term impact on the export of cotton in Xinjiang. In the case of strong demand for cotton The contradiction between supply and demand has temporarily changed. Since mid-January, due to the need for epidemic prevention and control, the requirements for Xinjiang cotton freight have become more stringent than in the previous period, and the volume of truck shipments out of Xinjiang has dropped slightly. In addition, as the Spring Festival is approaching, Xinjiang vehicles are less willing to leave Xinjiang before the holiday, and some inland “return journeys” “Cars” also returned early, resulting in a significant decrease in highway transportation capacity.
A trader in Shandong said that the production and sales of textile enterprises are now booming, the inventory of raw materials remains at about 1 month, the inventory of a few enterprises remains at 2-3 months, and cotton yarn orders are scheduled to From March to April, product inventories were significantly lower than the same period last year. Due to restrictions on transportation capacity in Xinjiang, companies can only purchase lint resources from inland warehouses. For companies with low raw material inventories, raw material procurement is more urgent. However, there are sufficient lint resources in the market, so this contradiction is not outstanding for the time being.
The trader said that Shandong customers are now receiving good domestic and foreign sales orders, especially combed yarns above 60S are in short supply, and the product profits are high. During the Spring Festival this year, it is expected that some companies will be uneasy about taking time off to rush to meet customer orders. Textile companies in Heze, Shandong Province mainly employ local employees, so the impact of the epidemic on rework after the holiday is negligible. The price of standard grade lint is now stable at 15,500-15,600 yuan/ton, which is higher than the futures price. There is no downward momentum in the short term. The downstream demand is very good, which provides strong support to the market. Especially in the peak season of textile production before the Spring Festival, it is more difficult for cotton prices to fall.
It is understood that when the global manufacturing industry is suffering, textile companies have ushered in a rare golden development opportunity. The latest statistics from the General Administration of Customs of China show that from January to December 2020, my country’s cumulative export volume of textiles and clothing was US$291.2217 billion, a year-on-year increase of 9.58%, of which the cumulative export volume of textiles was US$153.8394 billion, a year-on-year increase of 29.24%. Therefore, against the background of continued improvement in domestic and foreign demand, professionals believe that cotton prices are easy to rise but difficult to fall. </p