State reserve cotton sale price cut by 90 yuan/ton

The reserve reserve price will be reduced to RMB 11,931/t (standard price) during the second week (May 9-13), which is a reduction of RMB 90/t from the price of RMB 12021/t during the first week. (The selling reserve price of the actual batch reserve of daily listed cotton is based on the standard sales floor price, determined by the cotton notarization test results and the relevant quality difference table published by the China Cotton Association).

Judging from the turnover of the State Reserve's cotton sales in the first week, cotton traders and textile companies are highly enthusiastic in their participation. The sale price and transaction rate of the State Reserve Cotton are both at a high level. Among them, the transaction rate of imported cotton kept a continuous turnover rate of 100%, and the price increase rate during the sell-off process was even a record high, such as the maximum price increase rate on May 5 reached 3,680 yuan/ton (2012 Australian cotton).

According to information released by China Cotton Information Network, the supply of high-quality cotton in the domestic cotton market is still tight, which is the main reason why the transaction rate and transaction price of imported cotton continue to remain high. At the same time, as the market is more optimistic about the high-quality cotton prices in the later period, some companies involved in the sale of State Reserve Cotton have a strong hoarding mentality. During the first week of the bidding process, some cotton-related companies did not hesitate to rush to buy and hoard cotton.

“The sale of State Reserve Cotton has attracted many cotton-related enterprises to actively participate. Apart from the fact that market demand is indeed strong and supply is tight, it is important that the pricing, quality and quantity of the State Reserve Cotton, as well as the outbound system, etc. In light of market reality, there is no worries after the bidding.” A representative of cotton-related companies participating in the sale of the State Reserve Cotton said that if the analysis of downstream product sales volume and price, the sale price of the State Reserve Cotton in the first week is still a bit high It is expected that the turnover rate and transaction price in the second week of sales will cool down, and downstream demand will still need to be restored.

The current capacity of cotton in Xinjiang to digest cotton on the ground has greatly increased. The sales rate of Xinjiang XPCC cotton reached 95% in the current year. The market is not expected to change the tight supply of high-quality cotton in the short term.

According to the data released by Xinjiang Corps Development and Reform Commission, as of April 30, the processing volume of lint in Xinjiang XPCC's divisions was 1,444,300 tons, which was a decrease of 217,600 tons and 12.99% compared to 1,650,900 tons in the same period of last year, indicating the current year The lack of domestic high-quality cotton is directly related to the decline in production. At the same time, the cotton and linen companies of each Corps Division acquired a total of 1,351,500 tons of lint, a decrease of 247,500 tons or a decrease of 15.48% compared with 1,590,900 tons during the same period of last year. The actual storage was 1,432,400 tons, a decrease of 164,100 tons or 10.28% compared to 1,596,500 tons in the same period of last year. These two sets of data also indicate that a portion of the new cotton production has directly flowed into the market from the ginning mills, and the demand for new cotton in the market is relatively strong. Up to now, the actual sales volume of Xinjiang Bingdan lint (according to the receipt of payment) has reached 1.28 million tons or more, accounting for 95% of the total lint purchases of cotton and linen companies of various divisions, an increase of 500,000 over 780,100 tons of the same period last year. More than tons, an increase of about 65%.