In the past week, the Zheng Cotton CF2109 contract has continued to consolidate at 15,000-15,500 yuan per ton. In 2021, the national cotton planting area will be basically stable, lack of hype themes, and the external news surface remains "neutral". The long and short sides have a short-term weak balance. From the survey, the volatility of Zheng Cotton’s main contracts has narrowed sharply, the activity of cotton processing companies and traders in point-price sales has declined significantly compared with March, the "one-size-fits-all" sales resources of warehouses inside and outside Xinjiang have been greatly reduced, and cotton has returned to the basis. The offer "old way" comes up.
A medium-sized cotton trading company in Henan stated that the basis of spot sales of medium and high-quality Xinjiang cotton has remained stable since early April, while the basis for low-grade Xinjiang cotton has declined by 50-100 yuan/ton, mainly for old customers, large orders and Cash spot transactions.
April 20-21, Jiangsu, Shandong, Henan and other inland warehouses "Double 28" machine cotton picking price price is 15550-15750 yuan/ton (due to different or some differences in warehouses, quality indicators and impurities), Aksu, Korla, etc. The quotations of the "double 28" machine harvested cotton in Xinjiang's supervision library are concentrated at 15300-15500 yuan/ton, and the price difference between the same grade cotton quotations inside and outside Xinjiang has narrowed to 250-350 yuan/ton, a drop of 150-300 yuan/ton from February . On the one hand, Xinjiang cotton shipments increased exponentially from February to April, and Xinjiang cotton resources were abundant in inland reservoirs. On the other hand, with the fall of railway freight rates in April, the adjustment of oil prices, and the further relaxation of epidemic prevention and control, road freight rates also continued to decline.
According to feedback from some cotton enterprises and traders in Xinjiang, cotton spinning mills and intermediaries are still not active in inquiries and purchases. Raw material replenishment continues the principle of buy-as-you-use, which reduces the inventory of finished products such as cotton yarn and grey cloth as much as possible without expanding it. Storage of raw materials such as cotton and polyester staple fiber. A 50,000-spindle spinning mill in Jiangsu stated that the central bank’s April loan market quoted interest rate remained unchanged (currently held for 12 consecutive months), releasing a signal of neutral stability, and the monetary policy was adjusted from loose to "moderately tight". At present, small, medium and micro enterprises such as textiles and clothing have become more difficult to obtain credit, and the pressure on capital flow has risen. They can only increase the sales of gauze and pay close attention to collection of goods, while reducing the cash flow of raw materials and finished products to ensure the normal operation of enterprises.
Source: Chemical Network
