Long Into The Carnival Spinning Enterprises But Caught Off Guard.

After a short period of concussion, Zheng cotton futures broke out again as a trend. Since the rise of Zheng cotton in April, the price of cotton can be broken by 14000 yuan / ton as the focus of discussion. The 14000 yuan / ton was easily broken, and many saw 16000 yuan / ton. Even the 18000 yuan / ton in rumor was no longer a joke.

Many of them were in a carnival, and there was a lot of money left behind. The competition for capital was fierce.

Zheng cotton rise attracts attention.

Under the factors such as the volume of output and the expected reduction in international cotton production, the fund has taken a lot of money to push up the price, while the spot and futures prices have been rising each other, making the bull market continue.

The first is spot price.

Transaction prices are rising with futures.

Some traders raised the price of Xinjiang cotton for 300-400 yuan within a few days, and the 3128B class cotton price was about 13500-13600 yuan / ton.

National storage cotton can be slightly cheaper, but since June 24th, the average paction price and turnover rate have been rising, and the average price in June 27th and 28th has increased by 206 yuan / ton and 341 yuan / ton respectively, and the turnover rate has recovered to more than 99.7%.

This shows that the sharp rise in futures has affected the spot market and the reserve cotton market. Under the spread of panic, people will buy up or not, and will increase their willingness to stockpile goods.

Next, the tight balance between supply and demand is facing another break.

The amount of new cotton has bottomed out, and the surplus remains.

It is possible to choose a set to guarantee the delivery of the warehouse receipt.

In the past few weeks, reserve cotton has only 30 thousand tonnes of reserves per Monday, and the minimum reserves for other times are only 18 thousand tons.

There is still 3 months to go before the new flower listing in late September.

Third, the downstream market is not warm.

The import of yarn decreased this year, which made the consumption of domestic yarn increased, and the order of cotton mill was better.

5, 6, and July are the traditional off-season, which is late in the off-season this year, but the market is gradually fading after the end of May.

The inventory increases, sales volume is sluggish, and the order of the cotton mill is also reduced. In this case, the downstream is more sensitive to the price, and the yarn price does not have a substantial increase.

There is still a profit for spinning enterprises with a certain stock of raw materials. However, with the increase of cotton prices, the spinning enterprises that have bought with them have already suffered some losses or have made ends meet.

The sharp fluctuations in raw material prices will undoubtedly not benefit the operation of physical enterprises. The result is not only the failure of spinning enterprises to bear high cotton prices, but also the return of some imported yarn to the Chinese market.

Therefore, many textile enterprises appeal to the national cotton mills to increase as soon as possible. They believe that in the current situation, the domestic cotton increment is the best way for the industry to re balance the supply and demand of raw materials and keep the cotton at a reasonable level.