Cangzhou: Cotton prices have risen sharply, and merchants are keen to stock up on high-quality cotton

On May 5, the person in charge of a ginning factory in Cangzhou, Hebei Province said that their factory currently has more than 170 tons of local cotton and more than 200 tons of Xinjiang cotton. On that day, the real estate prices of grade 3128 and grade 4128 were quoted at 13,100 yuan/ton and 12,650 yuan/ton respectively, an increase of 150 yuan/ton and 100 yuan/ton. In addition, Xinjiang hand-picked cotton grade 2128 is quoted at 14,300 yuan/ton and grade 3128 at 13,800 yuan/ton, an increase of 150-200 yuan/ton from last Tuesday. Talking about the reasons for the sharp increase in cotton prices, the person in charge said: First, the cotton area in Cangzhou and even Hebei has been greatly reduced this year, and ginners believe that the supply of cotton, especially the supply of high-quality cotton, may be tight in the next year. 2. During this period, Zheng cotton continued to rise. The main 1509 contract closed at 13,520 yuan/ton, an increase of 515 yuan/ton since April 22. 3. Some cotton merchants and foreign cotton have also raised cotton prices. According to a trader in Qingdao Port, the price of Indian cotton S-61-5/32 in Hong Kong and Japan on May 5 was 13,700-13,900 yuan/ton, which was the same as last week. The prices of US cotton and Australian cotton continue to rise. The price of US cotton SM grade is 15,500-16,000 yuan/ton. The supply is currently tight. During the actual transaction, many textile companies cannot get goods at this price.
How will it change in the later period? At present, the wait-and-see sentiment among all parties is strong. The person in charge of a textile company said that the sales of cotton yarn have accelerated recently, but the price has not “rised all boats”. On May 5, the prices of carded 32s and 40s at their factory were 20,700 yuan/ton and 21,800 yuan/ton respectively, while the prices of combed 32s and 40s were 22,800 yuan/ton and 24,800 yuan/ton respectively, which was the same as last week. “Right now, everyone is still in the process of destocking and they don’t dare to raise prices, mainly because they are worried that customers will be scared away,” the person in charge said. Since late April, cotton yarn sales have accelerated, orders have also increased, and the company’s finished product inventory has declined to a certain extent. However, since the price of foreign yarn is still 1,000-1,200 yuan/ton lower than that of domestic yarn, domestic yarn has no competitive advantage. Many market participants said: “The key is that the cost of cotton is too high.” Since the current price of domestic cotton is still 2,000-2,500 yuan/ton higher than that of foreign cotton, foreign cotton is rushing into China in the form of outer yarn, putting pressure on the entire market. Therefore, some companies believe that it is unlikely that cotton prices will rise this year or even next year. However, a cotton merchant said that cotton production will be greatly reduced next year, and the area of ​​fine-staple cotton in Xinjiang will be reduced by about 20%. Now, high-quality hand-picked cotton in Xinjiang is “hard to find”, and it is expected to be the same next year, so even if the country sells reserves To supplement the supply, high-quality cotton is also “outstanding”. Therefore, some cotton merchants and traders are still keen to “hoard” high-quality Xinjiang cotton, foreign cotton, and real estate cotton.