On January 18, with less than two weeks left before the New Year, textile companies in some areas have begun to take holidays, and production and marketing activities have basically stagnated. Zheng Cotton’s continuous gains have also been temporarily suppressed and gradually entered a state of shock.
According to Nanyang Textile Enterprise, due to the epidemic in Henan, the cotton raw materials purchased by the enterprise cannot be transported to the factory in time, resulting in the enterprise not being able to start up normally, and can only arrange holidays to cope with the shortage of raw materials. In previous years, enterprises took holidays around January 25th. This year Forced to shut down a week early.
A cotton trader in Xinxiang said that some companies in the area have already gone on holiday, which is about half a month earlier than last year. The main reason is that orders and profits are not ideal, and companies have low enthusiasm for production, so they shut down early for the holiday. The operations of local enterprises are divided. Most of them are still starting production normally. Due to sufficient funds and large inventories of raw materials, especially reserve cotton for auctions, production can remain relatively stable, and shutdowns and holidays have been postponed accordingly. For such enterprises The proportion reached more than 60%.
It is reported that according to the market trends in previous years, as the Spring Festival approaches, the sales of cotton and cotton yarn gradually weaken, and the corresponding futures prices gradually stabilize. At present, Zheng cotton has been rising continuously for nearly a month. Combined with the spot market, the market also needs a time platform for buffer adjustment. After the holiday, the cotton spinning industry is about to enter the traditional peak season, and Zheng Cotton Operation may re-choose its direction by then. Now that spot prices have returned, Zheng cotton may need new market forces to push it up again. Of course, there is also a chance of a decline. Zheng cotton is already in a historically high range, and the probability of a downward adjustment is high, but the chance of a sharp decline is small. After all, The spot price is strong and does not support a significant adjustment in cotton prices. Therefore, the cotton market will most likely maintain a range operation after the holiday.
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