Noticias

Shantou Webster Fashion co., Ltd.

Does the sharp rise in cotton affect cotton mills to receive orders?


Time of issue:

2023-07-06

Since July 20, the market price of Zhengmian CF2109 contract has risen from 16380 yuan / ton to 17270 yuan / ton, an increase of 5.43%. The average daily transaction price of reserve cotton wheels also increased 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.

Since July 20, the market price of Zhengmian CF2109 contract has risen from 16380 yuan / ton to 17270 yuan / ton, an increase of 5.43%. The average daily transaction price of reserve cotton wheels also increased 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 rise in cotton has caused spinning profits to decline significantly compared with June, which in turn affected the receipt of orders in the third and fourth quarters. Xinjiang Changji, Shihezi and other spinning mills reported that they have just received the first order for C40S in September, and the order in the same period of previous years has reached mid-to-late October.

So last week's sharp rise in cotton futures spot restricts cotton textile companies to receive orders? According to the results of the survey results of cotton customers in Jiangsu, Zhejiang, Henan, Anhui and other places, the impact should not be exaggerated, and the hype theme is insufficient.

First, last Thursday and Friday, the increase of Zheng yarn was significantly higher than that of cotton, and the factory price of domestic cotton yarn rose to varying degrees in the past two days, and the upward pressure of raw materials was digested to a certain extent.

Second, from May to July, the net profit of cotton spinning mills is high, and the C32S medium and high distribution profit is generally 1500-2000 yuan / ton (high branch combing, combed yarn profit is higher), so even if the cotton spot rises by 700-900 yuan / ton, the mill can also respond by adjusting cotton matching, reducing losses and other ways, far from reaching the level of not receiving orders.

Third, in the past half a month, whether it is cargo or bonded, customs clearance imported cotton yarn quotations have oscillated and risen, coupled with the depreciation of the RMB exchange rate, so the impact of outer yarn on domestic yarn has weakened, and the rise in cotton prices has been conditionally digested.

4. The expectation of the arrival of the peak season for harvesting seed cotton and autumn and winter textile and clothing orders at high prices in 2021/22 has made cotton spinning mills unwilling to accept medium and long-term orders with low profits, and the accumulation of gauze is not obvious, and the abundant capital flow has led to the rise of cotton yarn.

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