We are about to enter the New Year, and the Spring Festival bell is not far away. During the holidays, logistics operations will be suspended, and cotton production and trading companies will also be on vacation. Therefore, textile companies have to plan in advance for stable production and have to prepare stocks early. Intend. For some companies that have to consider both funding and purchasing cost-effective resources, it seems that they need to consider multiple aspects to avoid wasting manpower and material resources.
First of all, enterprises should consider whether their existing raw material inventory can meet normal production needs. From inventory needs to be sufficient for one week to one quarter, enterprises of different sizes have different requirements for their inventory production. According to research, due to poor performance this year, individual companies have only used raw materials for 3-5 days to save capital costs, or even shorter production reserves. In the future, if there are special circumstances such as rain, snow or logistics and transportation, they must It will have an adverse impact on normal startup and may cause certain losses. Therefore, enterprises must proceed from the actual situation and avoid losing big because of small things.
Secondly, because many companies adopt the method of purchasing as you use model, so I am more concerned about the situation of product orders, especially after the recent easing of Sino-US trade relations, some orders have begun to flow back. Should we increase the inventory plan? It is suggested here that if China and the United States formally sign the first phase agreement in January, the probability of increased orders after the Spring Festival will increase. Enterprises with sufficient funds may appropriately expand the purchase quantity of raw cotton.
Furthermore, according to the current market, purchasing cost-effective resources is generally of concern to all enterprises. For companies with high cotton quality requirements, they can consider purchasing high-quality imported cotton such as Brazilian cotton or high-quality Xinjiang Corps cotton in the new year. They can also choose Xinjiang warehouse receipt cotton. Especially when the Zheng cotton CF2001 contract is approaching delivery, last year’s Xinjiang cotton was relatively cost-effective. Of course, it would also be nice to find traders clearing out stocks. Among them, there are special order requirements, such as long-staple cotton and Australian cotton for raw cotton. If conditions permit, some Pima cotton and Australian cotton can be purchased (reduced Australian cotton production will provide strong support for market prices). For the demand for mid-end cotton, you can choose to lock in cost-effective Xinjiang cotton through price point method. Whether it is old cotton or new cotton, the price difference is large due to differences in indicators such as strength, impurities, horse value, etc., so we must pay attention to Compare and select the desired indicators. For the choice of low-quality supply, you can choose low-priced Xinjiang cotton, imported cotton, or match Xinjiang cotton with local cotton.
In short, enterprises must not only consider the macro cotton market situation, but also make in-depth comparisons from detailed demand indicators, so as to minimize procurement risks and maximize benefits.
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