Yancheng: Cotton Market Takes On A New Look; Small And Medium-Sized Textile Enterprises Actively Produce And Sell

The cotton market turned around in November. Take Yancheng, Jiangsu Province as an example. Although there are not many local cotton resources in the new year, there are various ways of purchase and sales in the market, such as outsourcing, purchasing or partnering, or transporting foreign seed cotton back to the local for processing.

The quotations of cotton related products all showed an upward trend. In terms of seed cotton purchase, the price of pre frost three-level white cotton was more than 6 yuan/kg (38% lint percentage, good consistency, and no excessive water and impurities), breaking through the initial price of 5.6 yuan/kg to 5.8 yuan/kg, and the volume could be negotiated. In terms of lint price, there was also an increase of nearly 1000 yuan at the highest level, and the atmosphere of price negotiation was strong. On November 14, Yancheng 3138 public inspection lint quoted more than 13000 yuan/ton, 600-700 yuan/ton higher than the low point of the previous month. In terms of cotton yarn price, 300-500 yuan/ton was also increased. On the side of cotton, as the annual operation has entered the off-season, the mass production of cotton meal, cotton linter and cotton hull, the main by-products of cotton in Yancheng, has declined. The downstream has entered the early winter, and the demand of the breeding industry has entered a shrinking period. However, the quotation of related products is still high, with the price of cotton meal being 2700-2900 yuan/ton and that of cottonseed being about 2.20 yuan/kg.

Based on this market situation, Jiangsu, like other regions, has a prosperous cotton market, which has changed its previous weak state. It is understood that although some enterprises' orders are not as expected, they are still more confident in the face of rising market, and small and medium-sized textile enterprises have also significantly increased their driving rate. According to industry insiders, the average driving rate of textile enterprises in Dafeng, Dongtai, Nantong Qihai and other places in Yancheng was 5-10% higher than that two months ago by the beginning of November.

It is reported that the textile enterprises that seize the opportunity of market turning better to organize efficient production and marketing are those with more raw cotton in stock from the first half of the year to August September when the cotton price dropped sharply. These enterprises were at a loss in the face of suddenly high raw material costs. Now the market has turned around, so enterprises naturally seize it and actively produce and sell. A company in Dafeng, Yancheng, purchased more than 2000 tons of cotton raw materials with an average price of 14000 yuan/ton in the middle and late September. Under the pressure, the enterprise was worried.

At present, enterprises are producing at full capacity and expect to absorb losses in the market turnaround. It is also understood that many small and medium-sized textile and clothing enterprises in the mainland are actively looking for business opportunities in the domestic, Asian and European "non American" markets to obtain certain markets and inject vitality into the survival and development of enterprises under the obstruction of the US market. At present, some inland textile enterprises have adjusted their product structure and opened up new markets, which has brought about production business, which has also become another factor to accelerate the transformation of enterprises' production.

The market test is no longer capricious, and will eventually bring a way out for the versatile. Although the cotton market has been depressed and the benefits have not been satisfactory in recent years, the persistent "cotton people" are still on the way. The wind will stop the rain and give way, continue the history of industrial development, and strive to pursue the best benefits of enterprise operation.