According to previous announcements from the National Development and Reform Commission and the Ministry of Finance, the rotation sales of cotton reserves in 2017 will begin on March 6, and the deadline is tentatively set at the end of August. The daily listed sales volume is temporarily arranged at 30,000 tons. It is less than a week before the long-awaited rollout of cotton reserves by cotton textile companies and cotton traders begins, and the market has now entered the preparation stage.
Currently, the issue that textile companies are most concerned about is what the minimum price will be. So how will the price of cotton reserves change this year compared with last year?
At present, cotton textile companies across the country are paying attention to stocking up on cotton. The company’s raw material inventory is basically maintained at about one month, and only a few large companies maintain inventory for 2 to 3 months. Faced with tight inventory, most companies still choose to buy and use as much as possible and try to reduce the scale of inventory so that they can purchase reserve cotton later and reduce production costs. According to a cotton trader, companies now have a very short inventory turnover time, and they are all waiting to bid for cotton reserves.
Last year, cotton reserves were inspected for bales, and companies were more assured of its quality. In the actual spinning process, textile companies said they could basically meet their quality requirements. Therefore, companies will not only continue to participate in reserve cotton auctions in 2017, but also increase the amount of bidding.
As for the price of cotton reserves this year, some insiders believe that the bottom price of cotton reserves in 2017 will be significantly higher than that in 2016. According to the current cotton index calculations, the lowest auction price in 2017 will be between 15,200 yuan/ton and 15,300 yuan/ton, which is more than 2,000 yuan/ton last year. Textile enterprises and traders will use the lowest auction price as the spot price of cotton after March 2017. It is more likely that the price will be lowered.
Some textile companies said that compared with cotton on the market, reserve cotton is still more cost-effective. The more people participate in the auction, the higher the bidding price will naturally be. As textile companies are eager to replenish their stocks in the early stage of stockpiling, the bidding process will be more intense, and the transaction volume may remain high in the early stage of stockpiling.
Professionals in the industry said that after March, the market will focus on the reserve cotton auction bottom price, transaction price, transaction quantity and warehouse conditions. If we look at the current cotton prices at home and abroad, the reserve cotton rotation bottom price should be At about 15,000 yuan/ton.
It is understood that since mid-February, the gross weight delivery price of 3128/3129 Xinjiang machine-picked cotton in inland warehouses is about 15,800 yuan/ton to 16,100 yuan/ton, and the gross weight delivery price of “double 28/double 29” hand-picked cotton is 16,300 yuan/ton. Ton ~ 16,500 yuan / ton; while the heavy delivery price of 3128/3129 real estate cotton wool in Hebei, Shandong, Jiangsu and other regions is 15,300 yuan / ton ~ 15,500 yuan / ton, which is 200 yuan / ton ~ 900 yuan / ton higher than the expected bidding floor price.
If this year’s bottom price is around 15,000 yuan/ton, will the rush-buying situation last year happen again?
According to relevant reports, as the time for stockpiling is approaching, some textile companies are experiencing inventory shortages. Bidding for cotton reserves has become a priority for most textile companies. Next week will be the time for the 2017 cotton reserves to be released. It must be the most important thing for everyone at the moment. Want to know how textile companies are preparing for this year’s reserve cotton auction?
The editor learned from data displayed by the Zhongchu Cotton Information Center that as of February 27, the number of companies that had applied for electronic certification services for 2017 cotton reserve orders had reached 256, which was much higher than the data for the same period last year. These include textile companies and traders. There are still three days until the reserve cotton is rotated out. It is understood that this rotation will bring benefits to downstream spinning companies, weaving companies and garment companies, providing support for their price bottoms, while the operating rates of small and medium-sized textile companies may There will be a peak.
According to the survey, the current price of pure cotton fabrics is still rising, the prices of conventional varieties are uneven, and the competition is more fierce than before. For some weaving companies, the current price of cotton yarn has exceeded the originally affordable range, and the price of gray fabrics has increased. It is really a helpless move. If customers cannot accept the price increase, they will look for varieties produced by viscose staple fiber or polyester staple fiber instead, or use lower-grade cotton yarn to reduce costs, thereby reducing the loss of orders. It can be seen that the rotation of cotton reserves will be a major positive factor in reducing the costs of spinning and weaving enterprises.
To sum up, the rise in upstream raw material prices leading to price increases by downstream textile companies is still the most troublesome problem for weaving manufacturers. Market participants, whether they are textile companies or cotton traders, hope that the pressure on raw material costs can be reduced after the reserve cotton is released. Small, but it is worth noting that because the quality of cotton reserves varies greatly, if there are many cotton quality problems and the amount of reserves sold every day cannot meet the demand, the market will fluctuate. In order to create a healthy cotton spinning market, textile companies should still Be prepared early.
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