Since late June, Zheng Cotton has started a trend market. The price of the main CF2201 contract has risen sharply from 15,740 yuan/ton to 18,505 yuan/ton, an increase of 2,765 points, an increase of 17.57%. During the same period, the main price of ICE cotton futures has increased to 12,765 yuan/ton. The monthly contract rebounded from 84.10 cents/pound to 96.71 cents/pound, an increase of 15%. Under the premise that cotton futures are rising sharply, the ex-factory price of cotton yarn and the quotation of cotton yarn in various light textile markets have passively followed up. Cotton and cotton yarn have risen sharply, making it difficult for cost pressure to be effectively transmitted downstream. Some small and medium-sized cotton spinning mills have accumulated cotton yarn and their working capital has been affected.
In recent days, the author’s surveys of cotton spinning customers in Anhui, Henan, Shandong and other places have shown that: First, power cuts in some areas of Henan and epidemic prevention and control in Jiangsu, Hubei, and Henan have adversely affected cotton spinning mills. The impact on production, transportation and sales is still large; secondly, the quotation price of cotton yarn has begun to increase, and has generally increased by 500-1,000 yuan/ton since August (it varies depending on the count and cotton mix), and the sales progress of cotton yarn has slowed down. ; Third, although the profits of cotton spinning mills have declined compared with July, they are still at a high level in recent years, and the enthusiasm for taking orders has not declined.
So what problems do textile companies currently encounter? The author summarizes the following points: First of all, in 2021, Christmas and Easter orders from European and American brands and buyers will be placed 2-4 months earlier than in previous years. Therefore, textile and clothing orders are overdrawn, and production and sales in the fourth quarter may be difficult to prosper in the peak season. “Case.
Secondly, the cost of medium and long-term orders taken before August has risen sharply, and profits are being swallowed up by the sharp rise in cotton futures. They will suffer losses when performing contracts, and will be subject to compensation for non-performance. Cotton yarn quotations frequently rise, and downstream procurement and terminals feel at a loss and have strong resistance, and there may be a relatively large loss of customers.
Finally, shipping costs continue to rise, containers are hard to come by, and dumping of containers is common. In addition, cargo accumulation in some ports in Europe and the United States has significantly extended the waiting period for unloading, docking, and docking. , Textile and clothing export customers’ cotton yarn delivery period and payment collection period were passively postponed, and contract risks increased accordingly. </p
