Judging from the survey of some cotton processing enterprises in Xinjiang, as of January 25, the sales progress of 2023/24lint has generally reached 40 -50%, and the sales rate of a few ginning factories in the three major cotton areas in southern Xinjiang exceeds 60%. It is expected that the overall sales progress in Xinjiang will reach 60-70% before the Spring Festival. Since the average purchase price of seed cotton in northern Xinjiang is slightly higher and the overall cost of lint cotton is 300-500 yuan/ton higher than that in southern Xinjiang, the sales progress of cotton processing enterprises in northern Xinjiang is still slow.
A cotton company in Shaya County said that since late December, Zheng Cotton has started a rebound rhythm. While accelerating basis price sales, the company has also actively placed orders and quoted prices for spot goods. Currently, the remaining lint cotton inventory is less than 3,300 tons, and the sales progress has exceeded 65%, loan repayment and cash flow pressure are relatively controllable.
It is understood that in December and January, the main subjects of Xinjiang cotton inquiries and purchases were still cotton trading companies. As the main contract of Zheng cotton exceeded 16,000 yuan/ton, HedgingThe proportion has been increased to 70-80%. Mainland textile enterprises above designated size focus on procurement of XPCC cotton and resources from large-scale processing enterprises (groups), which are mainly shipped by railway from December to March.
Several cotton trading companies in Shandong, Henan, Jiangsu and other places said that the number of cotton companies/middlemen inspecting goods and placing orders this week has been significantly reduced compared with mid-January, because a large proportion of small and medium-sized cotton textile mills have entered the pre-holiday holiday. status, raw material inquiries and purchases have gradually stopped (including port bonded cotton, cargo, etc.). Some cotton companies have also begun to reduce pending orders and quotations, waiting for the market to start after the year.
At present, the sales of cotton yarn, gray fabrics, etc. are still significantly better than that of cotton. In addition to end customers’ concerns that yarn mills will not be able to deliver goods in time due to early holidays, it is also related to the industry’s general judgment that the rising momentum of cotton yarn futures before the holiday will most likely be passed on to the spot cotton yarn after the holiday. , Therefore, companies should replenish their inventory before the holiday to reduce risks in mid-to-late February.
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