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Does the surge in cotton affect the orders received by cotton mills?

Time：

2022-04-27 08:22

Source：

Since July 20, the disk price of Zheng cotton CF2109 contract has risen from 16,380 yuan / ton to 17,270 yuan / ton, an increase of 5.43%. The average daily transaction price of reserve cotton also rose from 16,652 yuan/ton to 17,008 yuan/ton, of which the daily transaction price of reserve Xinjiang cotton rose from 16,836 yuan/ton to 17,176 yuan/ton.

Some cotton spinning mills in Shandong, Henan, Xinjiang and other places have reported that the large increase in cotton has caused the spinning profit to decline significantly compared with June, which in turn affects the orders received in the third and fourth quarters. Spinning mills in Changji, Shihezi and other places in Xinjiang reported that they have just received the first C40S order in September, and the order for the same period in previous years has reached the middle and late October.

So last week's sharp rise in cotton futures spot has a big restriction on cotton textile enterprises receiving orders? According to the survey results of cotton customers in Jiangsu, Zhejiang, Henan, Anhui and other places, the impact should not be exaggerated, and the hype is insufficient.

1. Last Thursday and Friday, the increase of Zheng yarn was significantly higher than that of cotton. In the past two days, the ex-factory price of domestic cotton yarn has risen to varying degrees, and the upward pressure on raw materials has been digested to a certain extent.

2. The net profit of cotton spinning mills from May to July remained high, and the profit of C32S medium and high distribution was generally 1500-2000 yuan / ton (high-count carded and combed yarns were more profitable), so even if the cotton futures spot rose 700- 900 yuan / ton, spinning mills can also adjust cotton distribution, reduce losses and other ways to deal with, far from being unable to receive orders.

3. In the past half a month, the quotations of imported cotton yarns for cargo, bonded and customs clearance have all fluctuated upwards. In addition, the RMB exchange rate has depreciated, so the impact of foreign yarns on domestic yarns has weakened, and the negative effects of rising cotton prices have been conditionally digested.

4. The expectation of the high-priced harvest of seed cotton in 2021/22 and the arrival of the peak season for textile and clothing orders in autumn and winter makes cotton mills reluctant to accept medium and long-term orders with low profits. foot.

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Address: Gaotang Industrial Zone, Liangying Town, Chaonan District, Shantou, Guangdong

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