According to feedback from cotton spinning mills in Jiangsu, Henan, Shandong and other places, since the end of September, domestic cotton futures and spot prices have fluctuated upwards. The price of the main CF2301 contract has risen from 13,195 yuan/ton to 13,975 yuan/ton. Some traders and cotton processing companies once The cotton quotation was raised by 300 yuan/ton. Due to the impact of the epidemic and the drop in the transportation subsidy for Xinjiang cotton out of Xinjiang from 500 yuan/ton to 300 yuan/ton, the price of Xinjiang cotton in inland warehouses has increased slightly in 2021/22, and the price difference between Xinjiang cotton at internal and external warehouses in Xinjiang has also expanded to 1,000 yuan/ton. about.
Compared with the increase in price and volume in the upstream cotton market, not only has the price of cotton yarn continued to fall in the past half month, but also the gauze inventory rate of a large number of small and medium-sized cotton textile mills has increased, which has increased the pressure on production, sales, and payment collection. A medium-sized textile company in Dezhou, Shandong Province said that the quality of the textile industry during the “Golden Nine and Silver Ten” period was insufficient, and coupled with the recent recurrence of epidemics in some areas and the upgrade of prevention and control measures, the operating rate of weaving factories in coastal areas such as Jiangsu, Zhejiang, and Guangdong declined from mid-August to September. After a brief rebound in the middle of the year, it fell again. Enterprises’ mentality in accepting orders, arranging orders, and purchasing raw materials has undergone major changes.
Recently, most Xinjiang cotton processing companies and traders have pre-sold cotton for 2022/23. Most downstream companies have a wait-and-see attitude and are not eager to inquire and purchase. At present, the quotations of new cotton in 2022/23 and old cotton in 2021/22 in warehouses inside and outside Xinjiang have been aligned. Judging from the quotations of cotton companies, the “paper” profits of cotton spinning mills have shrunk significantly compared with September. In addition, cotton-using enterprises are cautious in purchasing raw materials and still follow the principle of “buy as you use and purchase according to order” to reduce the risk of working capital being occupied.