Xinjiang Cotton Spot Keeps Falling: Buying Up But Not Buying.

It is understood that recently, a large international cotton trader in Jiangsu, Shandong, Hebei and other places at the price of 12600 yuan / ton acquisition of real estate cotton, taking into account the cost of futures warehousing and two months of financial costs (Zheng cotton CF1503 disk price of 13000 yuan / ton), some cotton ginning plants sell lint, and Jiangsu, Zhejiang, Shandong and other warehouses in southern Xinjiang 2128 (including 2129) hand picked cotton gross weight delivery price stabilized at 14200-14500 yuan / ton, 3128 grade machine picked cotton.

It's 13300-13500 yuan / ton.

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Cotton enterprises in Korla, Bachu and other places indicated that more than 80% of zhengcotton futures and electronic matching warehouse receipts were machine picked cotton and real estate cotton, while the cost of picking cotton and hand picked cotton was about 1000 yuan / ton, so the impact of electronic discs on high-grade high-grade cotton and port high-grade cotton was not prominent.

On the one hand, the price difference between port C/ASM grade cotton and 2128 grade Xinjiang cotton is 1500 yuan / ton, Xinjiang cotton is "good quality and low price", India cotton S-6SM's net weight price is above 14000 yuan / ton, and Xinjiang cotton can't fall down. On the other hand, the Southern Xinjiang cotton enterprises are already "upside down" in the whole production and marketing. Before the end of December, the enterprises have paid off the loans proportionately, the pressure on short-term funds and repayment is not large, and the enthusiasm for losing money is not high. And in some cotton enterprises, even if the Xinjiang cotton spot is reduced by 500 yuan / ton, spinning enterprises and traders will not buy or fall.

It is reported that since January, Jiangsu and Shandong have been in large and medium scale.

In the year of India cotton and real estate cotton, only a small amount of Xinjiang cotton was purchased. On the one hand, Xinjiang cotton purchased almost 100% cash and did not accept payment terms such as acceptance and credit, while purchasing imported cotton could be LC90 days. The purchase of real estate cotton credit was normal; on the other hand, cotton lint in the the Yellow River basin cotton area of Hebei and Shandong in 2014/15 year were not inferior to Xinjiang cotton in terms of fiber length, micron value, strength and spinnability in 2014/15 year. The length of fiber was even better than that of Xinjiang cotton. In January November 2014, the substitution effect of Xinjiang cotton was obvious, and the price of the real estate cotton grade 3128 was only 12800-13200 yuan / ton (within the factory), which could completely meet the needs of spinning cotton yarn with 40S and below. The raw material purchase is mainly concentrated on the cotton outside the port (American cotton, Brazil cotton and 2013/14, 2014/15).

In addition, there is another phenomenon that needs attention. With the drop in crude oil prices, the price of PET staple has dropped to below 7000 yuan / ton, and the price difference between the 3128 grade Xinjiang cotton warehouse has risen to more than 7000 yuan / ton.