After the Spring Festival, the price of cotton and cotton yarn rose sharply, and the price of standard grade lint at the factory was as high as 17,000 yuan per ton. According to the so-called traditional market ethics of “buying up, not buying down” in the past, and coupled with the need to resume work and restart after the holidays, textile companies should increase the purchase of raw materials for processing, but this is not the case in the current market. According to the survey, small and medium-sized spinning and weaving enterprises have uneven batches of raw materials after the Spring Festival, and the overall purchasing momentum is weak. A considerable number of enterprises that have started operations have not purchased raw cotton yet, and there is a strong wait-and-see atmosphere among enterprises.
Analysis of the reasons: First, the current inventory of small and medium-sized textile enterprises is relatively large. Affected by logistics, purchasing and sales at the end of the year were somewhat slow. However, textile companies had completed the replenishment work in the first and middle of the twelfth lunar month, and pre-holiday digestion was limited. During the Spring Festival shutdown, textile mills with around 50,000 spindles usually have 300-500 tons of raw cotton inventory. Companies are in no rush to stock up on cotton amid the current surge in cotton prices.
Second, we are worried that the market will take a turn for the worse. International and domestic cotton prices continue to rise, and such price trends are a mixed blessing for companies. The interviewed companies believe that the cotton market is increasingly characterized by changes and rapid changes. Many owners said that the sharp rise in cotton prices has deviated from fundamentals, and there are still variables in the international situation, epidemic control, and follow-up orders.
Third, guaranteed market supply and logistics guarantee bring confidence to enterprises. Import, auction and other business channels have already used cotton. Enterprises have no worries. As long as they have sufficient funds, they can obtain the required production raw materials at any time. </p
