Knitwear manufacturers actively bid to pay attention to cotton growth

Knitwear manufacturers actively bid to pay attention to cotton growth

Since the three-day round on July 1 last week, the participation of cotton-related enterprises has been relatively high, with an average of 100% transactions on all three days. This week's round-off sales base price is 11,895 yuan/ton (equivalent to standard grade 3128B), which is 58 yuan/ton higher than the previous week. The round-off resources continue to be 8 thousand tons per day, and Xinjiang cotton and inland cotton each account for about 50%. National round-robin and round-robin have become the norm, and under the epidemic situation this year, knitwear manufacturers are still actively participating in auctions. Among the companies participating in the auction, textile companies account for a large proportion, and the auction process is very fierce and the price increase is large. And what are the main reasons? After communicating with some bidding companies by telephone, the author summarizes the following main factors:

1. There is demand in the low-grade cotton market, and the indicators are appropriate

After the epidemic situation stabilized this year, market consumption is slowly recovering, and local governments are actively implementing various measures to promote consumption. However, the operation of knitwear manufacturing enterprises currently has certain difficulties. Only the sales of low-count yarns have improved slightly. Therefore, the cotton storage wheels in the second country are mostly 12/13 cotton. In addition to the large decline in color level, other indicator lengths, The micronaire value, fracture strength and length uniformity index are all acceptable, which does not affect the use of cotton blending by knitwear manufacturers, so companies have a higher participation in the national reserve cotton auction.

Second, the rotation of cotton has a price advantage

Since the wheeling out last Wednesday, the average transaction price of real estate cotton wheeling was 10936 yuan/ton, 11151 yuan/ton, and 11194 yuan/ton; the average transaction price of cotton wheeling in Xinjiang was 11372 yuan/ton, 11572 yuan/ton, 11,578 yuan/ton. Since the end of June, Zheng Mian’s futures market has continued to rise for five days. Most of the market’s spot market prices are sold at the futures market price point. Therefore, the price is rising, and the sales price of Xinjiang cotton’s spot market base is also low at 12,000 yuan/ton. There is a certain difference in the transaction price of cotton rounds. The state reserve cotton has a price advantage, which is also one of the factors for enterprises to actively bid.

3. Convenient transportation

The bidding for national cotton storage resources involves the main producing areas of the mainland, such as Hebei, Shandong, Hunan, Hubei, etc., as well as Xinjiang local and Corps cotton, and the listed warehouses are mostly concentrated in major textile provinces such as Hebei, Shandong, Hunan, and Henan. At present, it is more difficult to pick up goods in Xinjiang. On the one hand, after the safety month inspection in June, the transportation requirements for cotton trains have increased and the difficulty of shipping has increased; and the freight rate of trains has been increased since July 1 by 5 %. On the other hand, the price of automobile transportation has been raised, and affected by the epidemic in Beijing, Wuhan, Hebei, there are many restrictions on vehicles to Xinjiang, and the difficulty of finding a car has also increased. Therefore, bidding for national storage of cotton to pick up goods in the mainland is more convenient for transportation.

The epidemic situation has brought about worldwide influence. With the gradual stabilization of the domestic market, knitting manufacturers continue to pay attention to the future controllable situation of the epidemic situation at home and abroad while actively bidding for the appropriate national storage cotton. At present, it has entered July. Xinjiang cotton has generally entered the flower bell period, and the mainland has also entered the flower bud period. Knitwear manufacturers also expressed their focus on the growth of new cotton to improve the prediction of market conditions.