Exclusive news from China Cotton Network: According to feedback from cotton textile enterprises in Shandong, Henan and other places, although the recent contract price of Zheng cotton CF2109 has exceeded the 15,900 yuan/ton round figure, However, it has not been able to effectively open the pressure level of 16,000 yuan/ton. The “fixed price” of cotton spot prices has remained stable, and most of them have not been adjusted. Some companies with high cotton inventories and high cash flow pressure have lowered their sales basis (generally by 50-100 yuan/ton) in an effort to speed up sales and achieve peace of mind as soon as possible.
A cotton company in Xinjiang said that in July-August, ginning companies need to carry out machine maintenance or equipment updates, and transform fire protection and safety facilities; In terms of aspects, it is necessary to plan in advance the loan guarantee deposit and self-owned acquisition funds for 2021/22 (general loan banks require the proportion of self-owned acquisition funds to be 10%-20%).
Cotton regulatory warehouses in Aksu, Bachu, Korla and other places have reported that lint road shipments have continued to decline since mid-June. Not only small and medium-sized cotton spinning mills in the mainland have made direct inquiries , procurement, and shipments have decreased, and cotton traders are not very enthusiastic about moving warehouses to inland consumption areas and delivery warehouses. The main reasons are as follows:
First, the current proportion of low-quality Xinjiang cotton in Xinjiang’s supervision warehouse in 2020/21 is relatively high, while domestic cotton in May-June The low prosperity of production and sales of OE yarn and low-count ring spinning yarn also restricts cotton-using enterprises from purchasing in Xinjiang;
Second, with the new situation from April to May The volume of cotton warehousing and public inspection has declined sharply until it stopped. In addition, the number of Zheng cotton delivery warehouses in Xinjiang has expanded to 10 this year. The registration and generation of Zheng cotton warehouse receipts have been significantly accelerated, and the operations of cotton enterprises shipping to mainland delivery warehouses have been reduced;
Third, since mid-to-late June, the price difference of cotton with the same index inside and outside Xinjiang has dropped to 250-350 yuan/ton. After deducting the transportation subsidies for Xinjiang cotton out of Xinjiang, shipping companies in southern Xinjiang may still need To pay extra fees, under the conditions of generally tight funds, cotton enterprises reduce the funds occupied by transportation.
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