Cotton Reserves In China: Domestic Cotton Prices Will Drop Steadily

The report released yesterday by the China cotton reserve management company predicted that with the current macroeconomic policy tightening, the country's determination to stabilize prices and the low demand for textile downstream demand, the domestic cotton prices could be stable.

The report pointed out that due to the end of the year, many domestic textile enterprises increased the stock of cotton yarn, the pressure of capital withdrawal was increasing, raw material procurement was affected, most cotton traders still reluctant to sell, and the national policy of stabilizing cotton prices continued to be strengthened, and spot trading was slack.

Looking forward to cotton prices in the future, China's cotton reserves are expected to be domestic due to the dual pressures of policy and market.

At present, domestic spot trading has no market price, and cotton price rise is short of downstream demand. First, the textile market is in the off-season, the sales are not smooth, the order is scarce, the stock is rising, the pressure of capital withdrawal is bigger, and the price of raw materials is rising steadily, and the profit space is obviously squeezed. Not only small enterprises have begun to prepare or even have early holidays, but this weak situation is hard to change in the short term; the two is that the price difference between them is close to the previous high point as the price of cotton and polyester keeps falling apart.

As of December 24th, the price difference between cotton and polyester was 15317 yuan / ton, which was only 440 yuan / ton from the November 4th peak.

According to the survey, some large textile enterprises have enhanced the substitution effect of polyester staple fibers in order to reduce cost, adjust product structure, reduce cotton and increase polyester.

Statistics in the report show that in December 24th, the mainland 3 level.

In the same period, in the international cotton price, near the Christmas season, a lot of profit from speculators, the policy of allowing India to postpone the shipment of cotton and the temporary suppression of spot demand, ICE cotton prices continued to decline for two consecutive days, and spot prices returned to a high level.