Does the surge in cotton affect cotton textile mills' orders?

(Summary description)Since July 20, the contract price of Zheng Mian CF2109 has risen from 16,380 yuan/ton to 17,270 yuan/ton, an increase of 5.43%. The average daily transaction price of reserve cotton rose from 16,652 yuan/ton to 17,008 yuan/ton, of which the daily transaction price of reserve Xinjiang cotton rose from 16,836 yuan/ton to 17,176 yuan/ton.

　　 Some cotton spinning mills in Shandong, Henan, Xinjiang and other places have responded that the large increase in cotton has caused a significant decline in spinning profits from June, which in turn affected the orders received in the third and fourth quarters. Spinners in Changji, Shihezi and other places in Xinjiang reported that they have just received the first C40S order in September, and that the orders for the same period in previous years have been placed in mid-to-late October.

　　 So last week, did the sharp rise in the spot price of cotton futures restrict cotton textile enterprises' orders? According to the survey results of cotton customers in Jiangsu, Zhejiang, Henan, Anhui and other places, the impact should not be exaggerated and the subject matter of hype should not be exaggerated.

　　 1. Last Thursday and Friday, Zheng yarn rose significantly higher than cotton. In the past two days, domestic cotton yarn ex-factory prices have increased to varying degrees, and the rising pressure of raw materials has been digested to a certain extent.

2. From May to July, the net profit of cotton spinning mills remained high, and the profit of C32S medium-to-high distribution was generally 1500-2000 yuan/ton (high-count carded and combed yarns are more profitable), so even if the cotton futures spot price rises by 700- 900 yuan / ton, the yarn mill can also deal with it by adjusting the cotton distribution and reducing the loss, which is far from reaching the level of unacceptable orders.

　　 In the past half month or so, the quotations of imported cotton yarn for cargo, bonded and customs clearance have fluctuated upwards. Coupled with the depreciation of the RMB exchange rate, the impact of foreign yarns on domestic yarns has weakened, and the negative rise in cotton prices has been conditionally digested.

4. The expectation that the high-price harvest of seed cotton and the peak season for autumn and winter textile and apparel orders in the 2021/22 year will make cotton spinning mills unwilling to accept low-profit medium and long-term orders. The gauze inventory is not obvious and the capital flow is abundant, which leads to a boost of confidence in cotton yarns. foot.

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Time of issue:2021-07-27
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Since July 20, the contract price of Zheng Mian CF2109 has risen from 16,380 yuan/ton to 17,270 yuan/ton, an increase of 5.43%. The average daily transaction price of reserve cotton rose from 16,652 yuan/ton to 17,008 yuan/ton, of which the daily transaction price of reserve Xinjiang cotton rose from 16,836 yuan/ton to 17,176 yuan/ton.

　　 Some cotton spinning mills in Shandong, Henan, Xinjiang and other places have responded that the large increase in cotton has caused a significant decline in spinning profits from June, which in turn affected the orders received in the third and fourth quarters. Spinners in Changji, Shihezi and other places in Xinjiang reported that they have just received the first C40S order in September, and that the orders for the same period in previous years have been placed in mid-to-late October.

　　 So last week, did the sharp rise in the spot price of cotton futures restrict cotton textile enterprises' orders? According to the survey results of cotton customers in Jiangsu, Zhejiang, Henan, Anhui and other places, the impact should not be exaggerated and the subject matter of hype should not be exaggerated.

　　 1. Last Thursday and Friday, Zheng yarn rose significantly higher than cotton. In the past two days, domestic cotton yarn ex-factory prices have increased to varying degrees, and the rising pressure of raw materials has been digested to a certain extent.

2. From May to July, the net profit of cotton spinning mills remained high, and the profit of C32S medium-to-high distribution was generally 1500-2000 yuan/ton (high-count carded and combed yarns are more profitable), so even if the cotton futures spot price rises by 700- 900 yuan / ton, the yarn mill can also deal with it by adjusting the cotton distribution and reducing the loss, which is far from reaching the level of unacceptable orders.

　　 In the past half month or so, the quotations of imported cotton yarn for cargo, bonded and customs clearance have fluctuated upwards. Coupled with the depreciation of the RMB exchange rate, the impact of foreign yarns on domestic yarns has weakened, and the negative rise in cotton prices has been conditionally digested.

4. The expectation that the high-price harvest of seed cotton and the peak season for autumn and winter textile and apparel orders in the 2021/22 year will make cotton spinning mills unwilling to accept low-profit medium and long-term orders. The gauze inventory is not obvious and the capital flow is abundant, which leads to a boost of confidence in cotton yarns. foot.

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