Throwing Storage Is Expected To Suppress Cotton Prices. Spinning Mills Are Struggling.

The cold wave of textile industry directly reduced domestic cotton demand and made cotton enterprises sell slowly.

Last year, the state began throwing stores in July, ending in late August, and priced at higher prices. The final deal was very small, less than 70 thousand tons.

On the contrary, the quality of domestic cotton is relatively poor this year, and it can no longer meet the needs of textile enterprises. Therefore, the market is more urgent for the state to throw and store.

There are some changes compared with last year.

First of all, the time may be ahead of schedule, and it is expected to start dumping in April.

Second, prices may be substantially reduced and closer to market demand.

Finally, the quality of reserve cotton will be considered.

As the market expects this year's dumping and storage,

A greater negative impact has been formed.

Textile enterprises are not eager to purchase cotton, and are more inclined to purchase cheap cotton from the national treasury, resulting in the current spot market sales more difficult.

Since the second half of last year, the survival of spinning mills has deteriorated significantly.

The decline in cotton spot prices is less than the decline in cotton yarn prices, according to 1 tons C32S

1.1 tons of cotton need to be converted. Last year, the processing fee dropped from 6400 yuan per ton in the year to 5800 yuan per ton. After calculating the cost, the company has already lost money.

At the same time, as the downstream fabric enterprises have difficulty in survival, the current yarn is difficult.

The reduction of general accounts and the increase of yarn stock caused the pressure of textile enterprises to increase significantly.

Two factors have led spinning mills to start production capacity.

It is understood that at present, the number of small and medium-sized spinning mills has been significantly increased, and many enterprises are ready to sell machines and sell them as scrap iron.

The enterprises that are still able to survive have also reduced the start-up rate, and the holiday time of the Spring Festival is also extended to cope with the shortage of orders.