The entanglements of textile companies

It is understood that the current textile companies use cotton as the mainstay of the State Reserve. On August 31, the country will stop throwing storage. From the current situation of new cotton growing in each cotton area, it is expected that the new cotton's listing period will be later than usual this year, especially this year's new cotton purchase price may be significantly lower than last year, in the early seed cotton acquisition, cotton farmers and cotton enterprises are expected to have a wait and see During the period, large-scale acquisition and processing may have to go after the National Day. This way, textile companies need at least 50-60 days of cotton stocks.

A person in charge of a textile company in Shandong said that at present, many companies have difficulties in sales of cotton yarn and stocks are too large. Taking their factory as an example, the current stock of cotton yarns has reached 42 days, an increase of 7 days from June, mainly due to the decrease in orders. Less cotton stocks. Because the country has thrown away reserves and has abundant supplies, most textile companies are mainly engaged in the storage of cotton. They insist on buying and using them, and their raw material stocks have been maintained for 15-20 days. After the dumping is completed, in the “vacuum period” of cotton supply, textile companies are tangled in the question of whether or not there is cotton and how much cotton is stored.

There is still more than one month before Xinmao is listed. After the listing of Xinmian, the state does not purchase or deposit, and the price will be formed by the market supply and demand relationship. At present, Chenmian prices are dominated by throwing storage prices, with a focus on around 17,000 yuan/ton. ** The price of new cotton is between 1,400-15,000 yuan/ton, and there is a price gap of 2,500-3,000 yuan/ton with the current price of 17,000 yuan/ton. The market is full of bearish atmosphere. Manager Zhao, a manager of a company in Zhengzhou, Henan Province, said that from the current situation, cotton prices will go down after the listing of new cotton. For textile companies, cotton stocks will be put more, and there will be a risk of price devaluation. It may also be impossible to buy cotton or buy high-priced cotton when it is not green.

For these entanglement, some companies have already taken action. According to the person in charge of a textile company in Hebei, their companies insisted on a conservative route, and they began to vigorously compress cotton yarn and cotton stocks after entering late July. "Stop watching is the only way to cope with the market's large fluctuations." The responsible person said that they intend to stop production in mid-August, selling cotton and cotton old customers, waiting for the cotton price to stabilize and re-enter the market. However, some large-scale enterprises adopt a positive attitude. In order to ensure the supply of resources, on the one hand, they are prepared to store some of the state reserve cotton. On the other hand, they have signed a certain amount of intentional supply agreements with some traders.

In the face of the upcoming “storm” in the market, the reporter suggested that enterprises that are preparing for normal production should, according to spinning conditions, raw material stocks, and follow-up raw material supply channels, advance structural adjustment and cotton blending adjustments for spinning varieties; Low-level enterprises should make supply channels for follow-up alternative resources in advance so that they can use them with their purchases to ensure that they have goods at the time of purchase. Enterprises with large amounts of cotton must establish stability with upstream manufacturers without throwing away storage. The docking relationship ensures the supply of resources.