Cotton Production And Marketing Gradually Slowed Down The Pace Of Cotton Rising Is Delayed.

According to the cotton textile enterprises in Henan, Hubei, Jiangsu and Zhejiang, Shandong and other places, cotton yarn production and marketing has been slowing down since the middle of June. The downstream weaving, clothing and trading companies have begun to query and pick up the goods. The performance of JC50S, JC60 and 60S yarns is not satisfactory. C21S-C40S bag bleaching and dyeing of high spun yarn stocks are not large, but overall, the market atmosphere of cotton yarn and grey fabric presents the characteristics of off-season.

Rising to 15690 yuan / ton (or 6.48%), the average daily turnover ratio of cotton reserves and the increasing price of the bid price and the tight supply of high quality goods, the new cotton and reserve cotton spot in 2016/17 increased again by 200-300 yuan / ton. In July, 18 and 19 days in July, the quoted price of the mainland warehouse 26-27cN/tex (26-27cN/tex) and the "double 28" hand picked cotton were quoted at 15900-16000 yuan / ton and 16500-16700 yuan / ton respectively. The "double 29/ double 30" price of the machine picked cotton in the northern Xinjiang was as high as 16800-17000 yuan / ton, and the textile enterprises were rising rapidly. By the recent Zheng cotton main contract from 14735 yuan / ton all the way.

Although from the top and upstream of the raw materials, the channel for cotton to rebound from spot or futures seems to have been opened, and the opportunity for traders to unlock and profit is coming.

First, the profits of textile enterprises are gradually decreasing, production enthusiasm is declining, and gauze inventory is constantly accumulating.

Take spinning C32S yarn as an example, if we reserve 50% cotton Xinjiang cotton, +50% reserve real estate cotton to cotton, calculate the financial cost, warehousing cost and so on, the actual profit is only 400-700 yuan / ton (spinning enterprises enter the sales tax has been unified); if we adopt the 2016/17 new year cotton + real estate cotton (New Cotton + reserve real estate cotton), the import cotton + the real estate cotton and so on (the import cotton contains 1% tariff quota pfer, the rent expense) spinning the C21-C40S yarn, the spinning enterprise has almost no profit or even the loss.

Facing the rising cost of raw materials (cotton,

The cost pressures are generally felt in cotton enterprises, and some small and medium-sized mills and weaving mills have planned to cut down production or spin other products.

Second, the flow of funds from the terminal to the middle reaches and upstream layers is tight, making the production and operation of textile enterprises cautious and prudent.

At the end of 6, China's broad currency (M2) grew by 9.4% over the same period last year. Its growth rate was 0.2 and 2.4 percentage points lower than the end of last year and the same period last year.

From the feedback of the whole industry, the central bank's currency has been tightened up in the first half of 2017, reflecting the rapid impact of traditional industries such as foreign trade, textiles and clothing.

Credit and accounts are very common among weaving and spinning mills. Credit is everywhere.

The financial work conference said that finance should serve the social and economic development. We should promote economic leveraging, firmly enforce the prudent monetary policy, strengthen financial supervision and coordination, and take the initiative to prevent and defuse financial risks.

Third, with the rapid shrinkage of cotton yarn price difference between inside and outside, the impact of external yarn is inevitable.

Although the import quota has blocked the unbridled impact of imported cotton imports, China's cotton farmers have been protected.

But Vietnam's yarn, India yarn, Pakistan, Indonesian yarn and Central Asia yarn have just begun to affect our textile and garment enterprises.

According to statistics, since July, the price difference between C16-C32S yarn and domestic yarn in Vietnam, Pakistan and India has been greatly reduced by 200-300 yuan / ton from the previous upside down of 1200-1500 yuan / ton, the price of non woven bleached yarn is even or slightly lower, and the competitiveness of the outer yarn has increased rapidly. Moreover, compared with the 40S yarn below the national yarn (cotton assorting with cotton reserves and real estate cotton), the yarn has the advantages of color, strength and CV value, and is very popular with domestic weaving, clothing and foreign trade companies.

Some foreign documents clearly suggest Vietnamese yarn, India yarn or Pakistan yarn.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.