High-quality cotton lack of spot prices

China's reserve cotton management company's inventory is still gradually rising. However, the availability of cotton on the market has felt a significant reduction, and prices have also risen slightly.

Responsible person Yang Hongwen of Shandong Wucheng Deyuan Textile Co., Ltd. expressed to Ben Wang that the recent textile companies must buy high-quality cotton with low price in the market, which is more difficult than the original. There are fewer and fewer cottons available on the market, and prices have risen slightly from the previous period, rising by about 100-200 yuan per ton. More cotton is currently stored in the storage warehouse.

Since the storage cotton officially started the 2012 temporary cotton storage and storage work on September 10, it has now entered the 12th week of the storage transaction. As of December 5, 2012, the cumulative transaction volume of cotton purchases and storages was 3,615,880 tons, of which 1,166,050 tons were traded in the Mainland, 1,925,320 tons were sold in Xinjiang, and 524,510 tons were sold by key enterprises.

According to China Reserve Cotton, cotton enterprises have a high degree of enthusiasm for the delivery of their deposits, and their trading volume has gradually increased. As of November 22, the cumulative volume of temporary cotton purchases and storage for 2012 was 4.66 times that of the same period of last year, and exceeded the total amount of cotton temporarily collected in 2011.

The 2012 temporary purchase and storage is the implementation of the interim storage policy in the second year after the “2011 Preliminary Plan for Temporary Storage and Storage of Cotton” and is scheduled to end on March 31 of next year. This marks a further step in moving domestic cotton purchasing and storage from temporary motions to normalization and institutionalization. China Reserve Cotton said, "The volume of purchases and stores exceeds market expectations, and it functions as a reservoir."

Yang Hongwen said that in recent days, cotton inside and outside China still maintains a price difference of several thousand yuan per ton. It is difficult for cotton textile companies to purchase high-quality cotton at affordable prices. Most companies are starting to hope that the country will throw low-cost cotton. Instead of buying a large amount of cotton, which currently has a higher market price, it is still purchased with it.

Jinqiao Textile Network believes that the domestic cotton market is showing a slight upward trend. The rapid progress of new cotton storage and storage has led to a shortage of high-quality cotton on the market. However, some cotton textile enterprises still have few national reserve cottons to bid in September. Due to the need to maintain production, they have to use domestic high-priced cotton to maintain their production needs without quotas and suitable extra cotton, so spot transactions Slightly improved, and thus pushing up the spot price of cotton 100-200 yuan / ton up.

Jinqiao Textile Network analysis said that cotton textile companies have been calling on the country to continue to sell reserve cotton. The new cotton collection and storage, under the constraints of tight storage capacity and difficulty in transporting cotton across the border, has slowed down the progress of storage and storage, and it is also necessary to properly throw cotton rounds. With the shortage of spot cotton resources, reserve cotton may again come out of the market.