Low-price cotton resources are on the market, and the quantity of lint continues to decrease.

According to feedback from cotton traders in Shandong, Jiangsu, Hubei and other areas, since mid-July, the listed resources and the number of pending orders for machine-picked cott…

According to feedback from cotton traders in Shandong, Jiangsu, Hubei and other areas, since mid-July, the listed resources and the number of pending orders for machine-picked cotton in southern Xinjiang in 2021/22 have increased significantly compared with May/June, while Changji, Kuitun, Shihezi and other places in northern Xinjiang have The quantity of lint cotton in the production areas continues to decrease.

On the one hand, due to the slightly better quality indicators, slightly better length/breakage ratio strength consistency and low impurity content in Beijiang’s machine-picked cotton in 2021/22, Beijiang’s machine-picked cotton has attracted the attention of buyers since the second quarter of 2022. The shipment volume continues to be higher than that of southern Xinjiang cotton; on the other hand, compared with the three major cotton areas in southern Xinjiang, the main cotton-producing areas in northern Xinjiang have the characteristics of fast railway shipment progress and low road transportation costs. In addition, Corps cotton accounts for a relatively high proportion of the total cotton output in Northern Xinjiang. Compared with local lint resources, it is more cost-effective and favored by enterprises spinning medium and high-count cotton yarns.

A textile company in Henan said that the recent “fixed price” low-priced cotton resources in northern Xinjiang have been on the market. This is mainly because the sales progress of some cotton processing companies is coming to an end. They are rushing to ship and clear stocks. Low indicators and low spinnability will be spent later, which is 2022/ The procurement and processing of seed cotton in 2023 will pave the way.

Judging from the survey, since mid-July, some cotton processing companies in Xinjiang have successively started equipment inspections, machine debugging, fire protection, security and other maintenance work. The inspections are expected to be completed by late August; other ginning factories are working hard to contact external transfers. , sublease, but judging from the feedback from enterprises in Kashgar, Aksu and other places, on the one hand, the contracting fee of the ginning factory will decline significantly compared with 2020/21 and 2021/22, and there will no longer be a guaranteed purchase volume; on the other hand, Many ginners are unable to determine whether they can provide contractors with financial institutions to support seed cotton acquisition loan qualifications and no longer mention it in the contract. Some cotton companies have clearly informed that they do not have the credit conditions to apply for the Agricultural Development Bank of China. But overall, it is relatively difficult for cotton processing enterprises to transfer and sublease, and the enthusiasm of mainland cotton-related enterprises to contract factories and lease in Xinjiang needs to be improved.

A municipal cotton and linen company stated that the company has maintained three factories in northern Xinjiang and two factories in southern Xinjiang every year (all leased, not self-owned), but so far this year, only two factories have been negotiated, except for the contract fee. In addition to the relatively large differences, whether it is qualified for loans from the Agricultural Development Bank of China or other commercial banks is also a focus of attention. Because the central bank’s monetary policy is expected to be prudent and loose in 2022/23, the company’s credit lines from mainland financial institutions may be significantly narrowed. It cannot support the acquisition capital needs of 3-5 cotton processing enterprises in Xinjiang.

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Author: clsrich