Shandong Cotton Market Weak Market Opening Market Sporadic Trade

In February 27th, the cotton market in Shandong province had seen sporadic trading, but the market continued the weak pattern before the Spring Festival.

Up to now, the purchase of seed cotton in Shandong has been completed by about 75%. Unsold cotton is mainly concentrated in Dongying, Jining, Ji'nan and other places. The main reason is that there are not many cotton ginning plants in these areas, and cotton farmers have no sales. Moreover, the cotton market in these areas is relatively late, and cotton farmers have a habit of selling "one cotton".

On the 27 day, a cotton grower in Dongying introduced that the local cotton output per unit area increased by 560 Jin / mu in 2014, a slight increase compared with the previous years, but the net purchase benefit dropped by more than 25%.

At present, there are still 1390 Jin of seed cotton in hand, and it is planned to be sold to the 400 type ginning plants around the Lantern Festival.

The cotton grower has no confidence in the sale price of seed cotton, he said. At present, the price of seed cotton in Shandong is 2.50-3.10 yuan / Jin, 3.10 yuan / Jin is the top price, and after a few days of rolling and opening scales, it is feared that even this price will not be preserved.

For the ginning factory, this Spring Festival is a bit annoying.

First, inventory digestion is slow. Most of the cotton ginning plants have more or less stocks, of which 3128 grade lint pick up price is 13000 yuan / ton line, 4128 level 12400-12500 yuan / ton, 2227 level 12300 yuan / ton.

This price makes most enterprises at a cost upside down state, selling losses, selling or losing money, and facing a dilemma.

Two is generally facing financial problems, repayment pressure is bigger.

A boss of a cotton ginning factory in Binzhou says that most of the cotton money in their factories is social financing, and the monthly interest expense will be 5-6 yuan.

Up to now, some ginning plants in Shandong have resumed work ahead of schedule, saying that they are returning to work, but they no longer buy seed cotton, but concentrate on selling lint and cotton seeds. The spot sale price continues to quote before the Spring Festival, but there are also individual manufacturers who are returning funds, reducing the sales price of grade 4128 and grade 2227 by 100-150 yuan / ton, while the small cotton bags of some 200 type ginning plants are mostly "clearance" and "tears".

There are not many cottonseed stocks in the ginning mills, but everyone is in a dilemma.

On the one hand, the amount of cottonseed is small, and the cost of lint is upside down.

Supplement the deficit mentality; on the other hand, the cottonseed pressure business funds, coupled with the heavy fog after years of market, enterprises also have a "bag for safety" mentality.

27, Dongying, Binzhou, Dezhou and other real estate cotton seed to the factory price 1.13-1.14 yuan / Jin, before the Spring Festival was flat, and the cottonseed from Xinjiang to the factory price in 1.20-1.21 yuan / Jin, before the Spring Festival.

At present, because most of the downstream oil refineries are still in the Spring Festival holiday, the market cottonseed trade is almost invisible.

In terms of textiles,

Some large and medium-sized textile enterprises have resumed work, while a small number of small and medium textile enterprises are returning to work after the Lantern Festival.

This year's resumption of work continued in the past year.

Rework rate continues to decrease.

A 80 thousand spinning enterprise in Dezhou reflects that only 75% of their workers return to work on time, and the rest of the staff either postpone the time for resuming work or have switched jobs.

In particular, some skilled workers are highly likely to quit job hopping, and the capital chain is tight.

For most textile enterprises, most workers paid wages, bonuses and partly returned bank loans before the Spring Festival. After years of construction, they face larger funding gaps. Many enterprises are "breaking the wall to make up the west wall" to maintain normal operation.

In view of this situation, the market believes that the downstream textile enterprises can not purchase raw materials on a large scale in a short time, which will continue to put pressure on the upstream, and cotton prices will not improve.