Lint Quote Continues To Fall Cotton Enterprise Lowers Seed Cotton Purchase Price

Recently, Chizhou, Anhui offer It continued to decline, and pessimism intensified. Cotton enterprises had to lower the purchase price of seed cotton. It is understood that as of December 2, 14000 yuan/ton was quoted for local level-3 lint (pick up, ticket and cash), and 13450 yuan/ton for level-4 lint, down 200 yuan/ton from last week.

Best Level 3 unginned cotton The purchase price is 3.15 yuan/jin (lint percentage 39%, moisture 14%, impurities 1.3%), and the fourth grade is 3.00 yuan/jin, down 0.10 yuan/jin compared with last week. 200 cotton enterprises purchasing price 2.60-3.00 yuan/jin, down 0.10 yuan/jin from last week. The cotton vendor's door-to-door purchase price was 2.80 yuan/jin, down 0.20 yuan/jin from last week.

It is reported that the main reason for the decline of lint cotton is that textile enterprises prefer Xinjiang cotton, while no one cares about inland cotton. Some small textile enterprises are willing to purchase 200 small bales of cotton. The price of small bales of cotton is about 200 yuan/ton lower than that of large bales of cotton. The price of large bales of cotton is low and difficult to sell. 400 type cotton enterprises are suffering.

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OPEC's decision not to cut production on November 27 led to a sharp drop in oil prices. By November 28, compared with the closing price on November 26, the price of West Texas light crude oil (wti) in the United States had plummeted by nearly 10%, falling below $67/barrel, a five-year low. At the moment when the crude oil price is more closely related to pta, the pta industry will reduce production in a large area to cope with price fluctuations. At present, the shut down pta devices are the 750000 ton device of Yisheng Dahua, 2200000 ton device of Hengli, etc. The real-time starting load of domestic pta is reduced to below 65%.

Since the pta factory reformed the settlement mechanism in May and June this year, the settlement price has been repriced according to the raw material px cost plus 700 yuan/ton. The price of px directly affects the pta market, which makes the correlation between pta and crude oil to a certain extent.

The settlement price of PTA contract of Yisheng, Hengli and Xianglu in November was set at 5950 yuan/ton, down 150 yuan/ton from the previous month. Recently, Hengli Petrochemical and Far East Petrochemical issued PTA contract listing prices in December, both at 6100 yuan/ton. In fact, the price of crude oil plummeted, leading pta enterprises to reduce the contract price for December. Zhao Cheng, an analyst at China Fiber Network, said that the original price of these enterprises was 6300 yuan/ton, but when the news of crude oil price cut came out, they lowered the price. Zhao Cheng believes that the price announced next may be reduced.

At present, despite the decline of crude oil, px enterprises have high concentration and strong position, and have more say in the industrial chain. This year, only two months ago, px and pta industries reached the proposed price of px acp. In other months, the two industries had great differences. The continued weakness of crude oil price brings variables to pta's procurement. Although there are many favorable factors, pta obviously has to adapt to this change. For example, in October this year, after PTA and px reached a price agreement, the price of crude oil fell further after the National Day holiday, resulting in damage to the interests of PTA enterprises.