Recently, the disk price of Zheng Cotton CF2009 contract turned downward after breaking through the resistance mark of 12,500 yuan/ton. Cotton prices are still suppressed by the downstream market. The phenomenon of “prices and few markets” is more prominent, and the spot market transactions are deserted.
A cotton company in Changzhou, Jiangsu Province said that the main contract of Zheng Cotton has increased by more than 500 points in the past week. In order to sell as quickly as possible, some cotton companies have lowered the basis difference (generally 20-50 yuan/ton), but it is very difficult. It is difficult to get the recognition and attention of buyers. As the CF2009 contract peaked and fell last weekend, breaking through 12,200 yuan/ton again, cotton spinning mills’ inquiries, price points or basis purchases rebounded.
Several small and medium-sized textile companies in Henan, Hubei, Shandong and other places reported that according to the current order situation of downstream weaving factories and garment companies, although ring-spun yarn and OE yarn with counts of 40S and below are almost There is no profit or even a slight loss, but some companies that sell domestic orders or do processing for large manufacturers can maintain production, achieve non-stop production, no layoffs, and maintain employment. Although high-count combed and carded yarns of 50S and above have better profits and are more tolerant of cotton prices, the orders are too few and the requirements are high. Without the support of quantity, the production cost is high. Therefore, for high-count cotton spinning Most factories set “minimum order quantity” or “fixed spinning” for orders, reducing cotton yarn inventory and yarn price risks to a low level.
A 60,000-spindle spinning enterprise in Dezhou, Shandong Province said that although the current price of cotton has rebounded significantly recently, the shipment of cotton yarn and gray cloth has been slow, the inventory has rebounded, and domestic sales orders from July to August have been “dry”. Due to high cost pressure, some yarn mills have tentatively raised the yarn price by 100-200 yuan/ton, but there has been no change in the actual contract price. The factory said that taking C26S-C40S as an example, the current cotton distribution uses various combinations of Xinjiang cotton from the state reserve + real estate cotton, imported cotton + real estate cotton from the state reserve, Xinjiang cotton + real estate cotton from the state reserve, etc. The gross profit is only 100-300 yuan. / ton (if you use 100% Xinjiang cotton, US cotton or Brazilian cotton in 2019/20, you will lose money), so the ability to withstand the increase in cotton prices is also lower than 300 yuan/ton or even 100 yuan/ton (provided that the cotton yarn has signed a contract Sales contracts instead of inventory), small and medium-sized yarn mills are surviving in the cracks of rising raw materials such as cotton and polyester shorts and weak gauze prices and slow shipments.
As cotton futures prices rise, downstream textile companies generally adopt the following four responses: first, reduce production and wait for the arrival of the “Golden Nine and Silver Ten” in the textile and apparel industry; second, transform, spin special yarns, organic cotton yarns or Increase the proportion of blended yarns such as polyester and cotton yarns. Although there are few orders, the profits are still acceptable; the third is to continue to reduce the cotton yarn count and cotton grade, focusing on reducing costs in raw materials, production, sales and other links; the fourth is to target Amid the epidemic, the global demand for medical protective clothing, masks, etc. is still very strong. Therefore, efforts are being made to convert production, adjust product structure, and catch up with the “wind”. </p
