Since mid-to-late November, domestic cotton and cotton yarn prices have shown an overall steady upward trend, and the relatively stable market has brought confidence to cotton companies. It is understood that the current production and sales situation of small and medium-sized textile enterprises in coastal areas along the rivers and rivers is relatively good, mainly due to the following three aspects:
First, since the beginning of winter, orders from the local domestic market have increased significantly, and the operations of some foreign trade enterprises have improved. . It is understood that most downstream textile companies currently have sufficient orders, and most textile companies have reached 95-100% start-up rate. Full production operation has a positive impact on the market.
Second, cotton yarn prices maintain an upward trend, boosting corporate confidence. Since the beginning of December, the factory price of grade 3 lint cotton in northern Jiangsu has exceeded 15,500 yuan/ton, grade 2 white cotton has exceeded 16,000 yuan/ton, and the prices of c32s and Jc40s yarn have also remained stable at around 24,000-27,000 yuan/ton. Such a purchase and sales price will be a good production and sales benefit for a well-managed company. If the trend is stable and purchases and sales are smooth, the power of enterprise production and sales to support market prices will be more abundant. As the saying goes, “You can eat what you eat and you can spit it out.” With a good cycle of management, why wouldn’t a company be happy?
Third, the cotton futures spot market has been at a high level for a long time, which makes more cotton industry insiders hold a bullish attitude. Last week (December 21-27), the domestic spot trend was stronger than that of the international market, and the price difference between domestic and foreign cotton increased slightly. The actual market operation also provided favorable support for the above information. Affected by multiple positive psychology, the number of corporate orders has surged, and as the end of the year approaches, purchases and sales are strong. Many local companies interviewed said that they have plans to appropriately increase the inventory of raw materials. In the past, the mentality of purchasing while using and purchasing based on sales has slightly loosened. More companies than in previous months have inquired about price and quality and increased inventory appropriately.
Of course, how long the current benefits of the cotton market can last and whether there will suddenly be another wave are still the focus of the majority of operators. However, despite many uncertainties, most companies still expressed confidence in the market outlook and actively took preventive measures. </p
