Recently, Zheng Cotton has stopped falling and stabilized, and has temporarily entered a period of shock. Against the backdrop of the continued spread of the epidemic at home and abroad, there is greater resistance to rising to the previous high. With the adjustment of cotton raw material prices, new changes may occur in the production and stocking situation of downstream enterprises.
According to a small textile company in Jiangsu, the company’s raw material inventory remains at about 2 months, slightly higher than in previous years. There are currently sufficient downstream orders, especially as the Spring Festival is approaching, which has increased the holiday season. The quantity of raw materials purchased beforehand. At present, product orders have been scheduled for 20 days. In addition, in order to prevent the spread of the epidemic, all localities have adopted more stringent prevention and control measures. We are worried that logistics will be affected, so we have appropriately increased the raw material reserves.
Another small textile company said that when cotton prices continue to rise, companies will be more willing to replenish their stocks, but now the market situation is unclear, and Zheng Cotton has opportunities to rise or fall. To control risks, raw material inventory and order volume are maintained at a moderate scale. If there is a chance of a sharp drop in the market, we will continue to purchase raw materials at a reduced price, otherwise we will wait patiently for the cotton market to adjust.
According to cotton professionals, the textile industry will enter the traditional peak production and marketing season after the Spring Festival. When the external epidemic situation does not improve, the competitiveness of domestic textiles on a global scale will only strengthen. , so demand is guaranteed for some time to come. This week is about to usher in the handover of the US President, and the market may experience short-term fluctuations. The mid- to long-term trend of cotton prices will still be positive in the future.
Textile Enterprises Online|Sufficient raw materials and orders, domestic sales of Xinjiang cotton are smooth
In order to understand the current textile enterprises Regarding the production and operation situation and the substantial impact of the Xinjiang cotton ban, the author conducted telephone interviews with the heads of many textile companies in Xinjiang and the mainland.
It is understood that the textile industry was generally sluggish in the first half of 2020. Since the second half of the year, the situation has gradually improved, especially before and after the launch of new cotton. Orders have increased significantly, corporate profits have improved, and production has started. Rates have increased and raw material inventories have increased. As of now, the raw material inventories of the interviewed companies are more than 2 months old, and orders are generally scheduled until around March.
As for the Xinjiang cotton ban news, one interviewed company believed that it was mainly affected by psychological expectations, and domestic sales varieties were basically not affected. It is reported that the company mainly produces mid- to high-end varieties of yarn, and its raw materials are mainly Xinjiang cotton. At present, downstream orders have not been completed, and production and operations are proceeding normally, without any negative impact yet. </p
