According to a senior analyst of the cotton market: As the cotton processing season in Xinjiang comes to an end, the cost of lint has become increasingly clear. The price in Xinjiang is basically no higher than 14,500 yuan/ton, but after excluding basis, finance, warehousing, After delivery and other costs, the current price is not attractive to most companies. On the one hand, futures prices have risen, and enthusiasm for pricing is low; on the other hand, spot sales are limited, and ginning companies are still facing certain sales pressure
. First of all, Xinjiang’s cotton processing is coming to an end, which does not mean the end of the cotton market. The weather is cold and the market is volatile. In fact, more changes and changes will occur in cotton circulation this winter and next spring. Whether it is ginners, textile mills or even intermediary operators, they will all experience changes in the cotton year. “Manage the catwalk”. The international and domestic impact of the COVID-19 epidemic, the uneven market trends in economic development between countries, and the extremely frequent political and economic changes in the conflict with the United States will all constitute the difficulty and highlights of this economic and world trade drama.
Secondly, the author greatly agrees with the observation that sales volume in the spot market is limited. In a high-density inquiry survey of many textile companies, the vast majority of textile companies currently adhere to prudent business strategies. No matter how many “business opportunities” are hidden in the market, small and medium-sized textile companies that occupy the main body of China’s textile industry still adhere to Use orders to guide our purchasing and selling strategies. Therefore, during the survey of textile enterprises at the end of the month, the author found that the monthly cotton purchase and sales of textile enterprises with about 50,000 spindles in Jiangsu, Anhui and other places remained at about 200 tons. Basically, there were few textile enterprises with more than two months of inventory, because they mainly engaged in domestic sales and Mainly engaged in contract processing, these companies basically do not have a product backlog exceeding 100 tons. Enterprises report that the market changes are too fast and too large, and sometimes it seems that there are no rational market changes. On the contrary, it has confirmed the psychology of small textile workers. The thickness of the orders in hand is the business opportunity of the enterprise. The limited ability to resist the market has made the dense small and medium-sized textile enterprises in the Yangtze River Basin The industrial park has formed a consistent position that orders have the final say, stabilizing production and sales to ensure survival. Together with the small and unbalanced supply of current orders, this also verifies that the comments of cotton market analysts are true.
Thirdly, cotton business entities, with Xinjiang ginning companies as the main body, will naturally not feel at ease when the processing resources do not turn into funds and flow back to the company. No one can predict that the cotton market will decline. Such a peaceful transition to next year. Some people advocate clearing the inventory now, while others are hoarding it in an attempt to predict whether there will be a surge in the next spring and summer. However, analysts believe that the current cotton price is already very high in comparison, and it is impossible for companies to seek a “safety in pocket”. The market is a gambling table, and winning and losing are common. Small and medium-sized textile enterprises and small companies are more likely to be on the boat. Small U-turns are quick and there are few sampans that go into big waves, so not many dare to take risks. In the days to come, they will pay more attention to the market and actively market to ensure the stable and long-term development of the enterprise. </p
