According to statistics, since the release of the reserve cotton wheel on May 3, the cumulative transaction volume of reserve cotton rounds for 2015/2016 as of May 20 has been 400.75 million tons. The auction turnover rate is as high as 99%, including 241,700 tons. 100% of the annual reserves of imported cotton were traded, and the transaction rate of domestic cotton was also around 98.5%. The transaction volume in just 14 trading days was more than 6 times of the total turnover in 2014/15. Some institutions and cotton-related enterprises believe that Cotton companies have a clear preference for reserved cotton. The author believes that in addition to the inspection of Bags and the weight of rechecks, reserve cotton can help spinning companies and traders to target their bids. There are also several reasons for keeping the high turnover rate:
1. Except for auction reserve cotton, a large part of textile companies do not have channels for supplementing raw materials, and SMEs are particularly prominent. The market estimates that China's cotton supply gap will be 1.2-1.5 million tons this year, and the 2 million tons reserve cotton round-out volume can fully meet the needs of the new cotton pre-listing textile enterprises, but the structural contradiction of domestic cotton resources in 2015/16 has highlighted this Imbalance is exaggerated and even hype. By the end of May, cotton in Xinjiang, both inside and outside Xinjiang, still had about 348,000 tons of cotton (according to the national cotton market monitoring system data, as of May 20, Xinjiang's cotton processing volume was 3.645 million tons and sales were 3.297 million tons), but sources Dispersed, low in quality and spinnability, it is basically ignored by the market. In order to meet the requirements of stable production, stable yarn quality, and stable product competitiveness, textile companies can only voluntarily abandon the cashmere of Xinjiang, while the port’s bonded and spot shipments are still beautiful. Cotton, Ukrainian cotton, West Africa cotton, Australian cotton, etc. can be chosen, but the quota is insufficient, buy quotas and then self-clearance, the high cost is obviously unsustainable for cotton companies.
2. Although the quality of reserve cotton is different from that of 2015/16 foreign cotton and Xinjiang cotton, it is actually lower than the spot price of 500-2000 yuan/ton. For spinning C21S-C40 cotton yarn manufacturers, since 10500-12000 yuan / ton of reserve cotton can fully meet the quality requirements of cotton distribution and contract, why should 12,800 yuan / ton or even 13,000 yuan / ton purchase Xinjiang cotton spot it?
3, reserve cotton out of the reserve price according to the color grade, fiber length, micronaire value, fracture strength and other indicators pricing, the spread of cotton prices across grades, and the spot market price confusion. In 2014 and 2015, the country completely withdrew from unlimited storage, and cotton was returned to the market economy. For many spinning companies with spinning yarns of 40S or above, the 31st level of cotton is basically the same as level 21 in the distribution of cotton, spinning, and weaving. Therefore, the price difference between the 2128 and 3128 levels at the time of purchase was only 50-100 yuan/ton or even no spread. The reserve cotton is priced strictly according to the re-inspection standards. "Low-quality, low-price, high-quality and high-price" meets the expectations of the market and the buyer, and reduces the appearance of blindly markups and shootouts.
kaiyue , https://www.marketuniongroups.com