Last week, confirmed cases of the epidemic appeared in Suihua and Dongning of Heilongjiang, Sanya of Hainan, Chengdu of Sichuan, Hami of Xinjiang and other places, and the market’s risk aversion mentality increased. Although the domestic epidemic situation is currently generally under control, with the coming of winter and the fact that the epidemic situation in neighboring countries is not fully under control, overseas risks continue to increase. Recently, there have been new confirmed cases in many places, and it is imperative to strengthen epidemic prevention and control. As Zheng cotton futures fluctuate upward, the market’s bullish mentality has strengthened. In order to reduce procurement costs as much as possible and stabilize production during the Spring Festival holiday, some downstream textile companies have increased their willingness to replenish their stocks in the near future.
According to research, due to the impact of the epidemic on the production and operation of the cotton spinning industry at the beginning of the year, in order to ensure a reasonable arrangement of raw material inventories, some textile companies have recently planned to gradually replenish their inventories. Especially in the middle of this year, the epidemic occurred in Xinjiang, which restricted some road and railway transportation, extended cotton transportation time, and affected the operations of textile companies to a certain extent. In order to avoid encountering transportation difficulties again, some textile companies in Shandong and Henan have started restocking.
In addition, some cotton-related ginning companies, trading companies and importers have reported that since last week, inquiries from textile companies have gradually increased, especially for Xinjiang Double 28 and Double 29 machine-picked cotton with low impurity content. They are quite enthusiastic, and there is even a rush to buy in some markets. At present, the self-pickup prices of Xinjiang Shuang 28 and Shuang 29 machine-picked cotton are 14,700-14,900 yuan/ton, 15,000-15,300 yuan/ton, and the spot price of the Corps is slightly higher. Why is the market so enthusiastic about high-grade Xinjiang cotton? Many companies said that the quality of cotton in Xinjiang has declined this year and high-quality resources have decreased. In addition, the recent preference for 40-count/60-count yarn transactions has stimulated the enthusiasm of yarn mills to replenish their stocks. The price of foreign cotton of the same grade is slightly higher by 100-200 yuan/ton, and for a long time, textile companies have mature technology and strong stability in using Xinjiang cotton.
Therefore, judging from the current domestic cotton quality structure, it is a general trend that high-quality cotton is favored by the market. As low-cost spot goods are cleared, high-cost cotton and consumption expectations increase, cotton prices may continue to decline in the medium to long term. Go higher. Therefore, the pace of downstream replenishment this year may be earlier than last year, but before the foreign epidemic is completely contained, market consumption is limited, and the overall digestion scale is not expected to be too large. </p
