On September 28, Zheng cotton continued to rise sharply, with the main contract price approaching 19,000 yuan/ton. Faced with soaring cotton prices, business risks for downstream companies are undoubtedly continuing to accumulate, and some companies have no choice but to purchase at high prices.
According to cotton spinning professionals, the “Golden Nine and Silver Ten” period has passed halfway. New orders received by companies are lower than expected, peak season characteristics are not obvious, product profits are low, and corporate confidence is insufficient. Many places have implemented dual energy consumption control policies, limited power and production, and the start-up of textile enterprises has declined. Enterprises in Jiangsu and Zhejiang have been greatly affected. It was not until late September that cloth factory inventories began to decline.
Faced with rising cotton prices, downstream textile companies have no choice but to reluctantly purchase raw materials at high prices while actively bidding for cotton reserves. A cotton purchaser said that yarn orders have now been scheduled until November. The company uses a large amount of cotton every month, and the raw material inventory can satisfy two months of production, which is basically at a normal level. In order to ensure cotton allocation and complete orders on time, sometimes we have to purchase at a higher price before the cotton price drops. For example, in order to ensure the use of cotton today, a batch of cotton was purchased at a price point of 18,400 yuan/ton. Adding a basis difference of 1,600 yuan/ton, the comprehensive price reached 20,000 yuan/ton. Purchasing such high-priced cotton significantly increased the amount of cotton yarn. The cost puts great pressure on back-end customers.
Cotton spinning analysts believe that the price of bulk commodity raw materials increased in September. Due to the sharp increase in shipping costs, weaving and garment factories earned very limited profits. Since last year, the textile situation has been very good. Many companies have expanded their production scale. Nowadays, it is difficult to get orders for textile machinery. In the face of huge profits, textile companies need to remain calm. After all, huge profits will not last forever. The power supply policy has attracted much attention recently. This is a measure taken by the country to control the total energy consumption and unit energy consumption. The “carbon neutrality” policy will have an important impact on the textile industry for a long time to come. In order to achieve this goal, the country must plan and arrange in advance, and power rationing may occur every year in the future.
It is understood that the scope of this round of power restrictions covers various regions across the country, but the degree of strict control varies by region. Strict control is stronger in areas with tight power consumption, while it is relatively strict in areas with less developed industries. Soft. A yarn enterprise in Zaozhuang, Shandong Province said that it has received a notice of power rationing, but the period of power rationing is not clear. The company stated that during the power limit period, it plans to reduce the operating rate by 10-30% and will not suspend production on a large scale. </p
