Textile Enterprises Postponed Resumption Of Cotton Enterprises Actively Competing For National Reserves

In the Spring Festival of 2020, the outbreak of the new coronavirus epidemic, which was unexpected, brought an unsettled new year for the whole nation. Affected by the extension of the Spring Festival holidays, the enterprises resumed their working hours. The major textile enterprises in Hebei, Shandong and Henan were required to resume their work until February 10th. The panic brought by the epidemic and the delay in the resumption of business have brought some impact on the cotton market.

In the meantime, I understand that textile enterprises in various parts of China strictly abide by the state regulations and postpone the resumption of work hours. At present, the main work is to strictly control and control the mobile workers, understand their health and disinfect the factory area. For the procurement of cotton, a company official said: before making a clear start date, the enterprises will pay close attention to the situation of the electronic disk market and the situation of the import and export, and slow down the procurement of cotton. At present, there is no way to transport the vehicle locally. The cotton ordered before the year was delayed due to the delay of the epidemic. Therefore, the cotton spot purchase and sale is almost at zero turnover status due to the epidemic situation.

In the face of the current market situation, the most urgent thing for textile enterprises to suspend production is cotton processing enterprises and traders with cotton stocks. In February 3rd, the opening price of Zheng cotton futures fell sharply, and the CF005 contract fell 950 yuan / ton to 12565 yuan / ton, 4 days down 60 yuan / ton to 12620 yuan / ton. And Xinjiang cotton entered tenth weeks (2.3--2.7) to bid for the maximum price of 14135 yuan / ton, so cotton enterprises and traders enterprises actively participate in the auction, bidding competition is also very fierce, the first round of the listing of the total number of 9000 tons of all transactions, the average price of the transaction was 13351 yuan / ton; 4, the country continued to increase the number of daily rounds to 10000 tons, also all transactions, the average price of the transaction was 13723 yuan / ton; 5 days, the country once again raised the number of daily rounds to 15000 tons. With the release of panic and the increase in the number of new cotton imports from Xinjiang, it is expected that the cotton market will gradually become vulnerable and stable. But eventually, the cotton terminal market needs time to recover and is expected to improve in a short time.

For the future cotton market, we must look at the progress and effectiveness of this epidemic prevention and control. At present, as the textile enterprises and downstream enterprises have not yet resumed production, cotton sales are mainly concentrated on the electronic disk of Zhengzhou cotton and the national rotation. The state has increased the number of daily rounds in the current market situation, to a certain extent, relieved the panic of enterprises and solved the financial pressure of enterprises. I believe that with the continuation of the outbreak of the war, we believe that after the resumption of production, the cotton market will also usher in a bright spring.