The Financial Pressure Faced By Cotton Enterprises Can Only "Turn East".

Although the difference between high quality cotton and domestic Xinjiang cotton has increased to 2000-3000 yuan / ton, however, due to the limited import quota of cotton, some cotton textile enterprises hope that the real estate cotton will be processed as soon as possible to meet the needs of spinning 32S and below low count yarn. At the same time, we hope that Xinjiang cotton will move to the warehouse as soon as possible, increase the quality of the cotton pickup and the quality of the rolling mill, and give the cotton enterprises the opportunity to choose and purchase more channels.

Cotton Traders in Qingdao, Zhangjiagang, Guangzhou and other places reflected that during the National Day period, the price of inquiry, goods and warehouses were very active in the high level bonded cotton and 2015/16 cotton stores in the United States.

One side Australia cotton The spot is basically sold out. The supply of goods is concentrated only in the hands of a few foreign and large foreign cotton enterprises. The quality and spinnability are better than those of cotton and West African cotton in 2015/16, and cotton in Brazil is much better in 2016, especially in terms of fiber length and strength, compared with 2016/17 Xinjiang cotton.

On the other hand, the difference between Australia cotton and American cotton and Brazil cotton has been further narrowed and the price performance ratio is high, which is favored by China's large and medium-sized textile enterprises and traders. In the first ten days of October, the price of bonded cotton CNF was higher than that of C/ASM cotton and SM Brazil cotton 2 cents / pound, 2.20 cents / pound respectively, lower than that of Uzbekistan cotton in the same grade 2015/16, which was close to 2 cents / pound.

Jiangsu, Henan, Hebei and other places Textile enterprises Although the price of 32S and above counts of combed yarn and combed yarn has increased by 300-500 yuan / ton since late September, the increase is still behind the domestic cotton price increase. Cost pressure Not only did it not get remission, but it became bigger and bigger, and it was forced to use the import quota of cotton in 2016 within 1% of the tariff.

Although in September, "grabbed" a certain amount of national cotton reserves, but due to quality, grade and other issues, we need to purchase 2016/17 Xinjiang hand picked cotton or bonded high quality machine cotton as cotton blending, spinning 40S and above count yarn, and the cost of Xinjiang cotton is too high, and road transportation costs rise sharply.

Plus, after entering October, a large part of cotton textile factories and cotton enterprises in China are facing increasing pressure on capital, returning loans (first and then lending), clearing material costs, and paying workers' bonuses, so that spinning enterprises have to enter the yarn and grey cloth to get stock in advance. They can neither break the cash flow nor guarantee production, but choose LC90 or even more time to purchase imported cotton.

"The cotton market does not support the rise in cotton prices, the cost of production is upside down", "the peak season is not prosperous this year, and the market is watching." in the face of this year's cotton price continues to rise in the market environment, many textile industry insiders told reporters. Insiders say that enterprises rely mostly on hoarding and cotton production. Taking Henan, the second largest province of the country's yarn production, for example, the capacity to start production in the golden autumn season is only half that. Analysts believe that the high price of new cotton is related to the sharp shrinkage of cotton planting area this year, and this situation is expected to ease next year.