Nanyang, Henan: Textile Enterprises Increase The Operating Rate, Mainly Purchase Reserved Cotton

On the morning of August 20, light to moderate rain fell in some areas of Nanyang, Henan Province, which effectively alleviated the current cotton drought problem. From the overall production situation of local textile enterprises, the current performance of the market is still not optimistic. It is understood that the current number of start-up enterprises has increased, from 10-25 textile enterprises last month to 15-50, but about half of the textile enterprises still remain idle and wait-and-see. According to the person in charge of a textile enterprise, at present, all textile enterprises are short of funds, bank loans are tight, and textile enterprises have difficulties in loans and high repayment pressure. Although some enterprises say that orders are constantly increasing and the number has increased, due to the shortage of funds, they can not purchase large quantities of raw materials, so they can only purchase in small quantities and withdraw funds while producing, so as to ensure the timely delivery of orders from customers.

From the perspective of market sales, the current market sales are mainly based on general comb 21s, 32S, 40s and combed 21s, 26S, 32S and 40s. Due to the lack of driving force for the rise of downstream yarns, all enterprises have made stable quotation sales (the table below is the quotation of high blending cotton), and the price of low blending cotton will fluctuate by 300-700 yuan / ton on this basis.

Affected by the fluctuation of Zhengzhou cotton futures price, the cotton spot price has been rising in recent years. Textile enterprises purchase raw materials at the current price and face losses. In order to ensure the stability of customers and reduce losses, textile enterprises increase the bidding quantity of reserved cotton. Due to the high performance price ratio of reserved cotton and the quality requirements of current production orders, the production still has certain profits, so the textile enterprises purchase reserve cotton actively. At present, the spot price of cotton is on the high side, and the production profit of textile enterprises is not guaranteed, and the procurement is generally suspended.