Why Are Long Staple Cotton Prices Rising Continuously? Cotton Yarn Trading Downturn And Why?

Recently, domestic staple cotton prices continued to rise.

As of June 6th, the mainstream price of cotton grade 137, 237 and 336 grade cotton in Akesu, Xinjiang was 21900 yuan / ton, 21000 yuan / ton, 19700 yuan / ton line, up 150-200 yuan / ton compared with last week, and the price of long staple cotton produced by 137 grade and 237 grade Corps in the mainland of Henan was 22500-22600 yuan / ton, 21200-21300 yuan / ton, up by more than 22500-22600 yuan / ton last week.

According to local cotton traders, the sale of long staple cotton is smooth in the near future, and the downstream textile enterprises are getting goods in an orderly manner. With the increase of storage costs, some cotton merchants have plans to continue to raise their prices.

Why are long staple cotton prices rising continuously?

The production of long staple cotton in 2017 will be reduced substantially.

It is understood that in 2017, Xinjiang's long staple cotton area was reduced to 1 million 200 thousand mu first line, down 45.5% from 2 million 200 thousand mu in 2016.

In addition, in the 4-5 months of this year, the weather conditions such as gale, rain and snow in southern Xinjiang, the emergence rate of cotton is only 60-70%. In addition, the drought in the southern Xinjiang and the growth of some long staple cotton are limited. The industry expects that the long staple cotton per unit area or 250 kg / mu will be reduced by 30 kg / mu in 2017 compared with 280 kg / mu in 2016.

Long staple cotton is in short supply.

According to the introduction of Xinjiang enterprises, as of now, the new cotton enterprises and distributors' long staple cotton stocks are less than 15 thousand tons, and more than 70% are of poor quality, short fiber, low horse value, poor color, and poor spinnability.

At present, most staple cotton is stored by large traders, and some of them are pferred to the mainland for sale. The raw materials inventory of downstream textile enterprises is also basically low.

The value of long staple cotton is still undervalued.

At present, the domestic "double 28" Xinjiang fine fleece cotton price is 16500 yuan / ton line, the 237 grade long staple cotton price is 21200 yuan / ton, the difference between them is only 4700 yuan / ton, and the value of long staple cotton is obviously underestimated.

Price maintenance, trading volume continued to slump, low price yarn accounted for the mainstream of pactions, combs and air spinning categories were small batch pactions, cotton trading concentrated in C21S, 32S, etc., other pactions were lighter.

Pure polyester yarn trading atmosphere is poor, price adjustment, T45S sales slightly better than other specifications.

The shipment of R10S and 30S is acceptable and the price is stable.

T65/C3545S pactions are acceptable and prices remain stable.

Polyester viscose yarn is weak, and the price of individual specifications is down.

At present, there is a slight increase in the stock of the cotton mill, and the construction starts to maintain a high level. The new orders are not well followed up in the late stage, and the overall production and sales rate shows a downward trend.

In the early stage of the dissolving pulp, the focus of the negotiations was 820-840 US dollars / ton, and the downstream part was mainly purchased, and the overall turnover was not large.

Some of the new quotations this month are expected to be released early next week.

Viscose staple fiber prices continued to maintain a steady trend, the middle end of the mainstream price of 14700-15000 yuan / ton, the actual paction focus of 14600-14800 yuan / ton, part of the lower turnover is also 14500 yuan / ton nearby.

Still better, part of the maintenance status of super signed, the price of 15000-15300 yuan / ton, the lower reaches of the general enthusiasm for procurement, more moderate procurement, some of the raw materials stock mill generally wait-and-see.

Viscose filament is weak finishing, the trading atmosphere is light.

Not high, the viscose factory shipments are difficult, inventory has risen, the overall price changes little, but the discount is greater.

The performance of human cotton yarn is still weak. The mainstream of Xiaoshan's ring spinning 30S is quoted at 18800-19100 yuan / ton, with a slightly lower turnover of 18500 yuan / ton.

Viscose in the short term is still mainly stable, lack of good news.

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