Observation: How Do Textile Enterprises Purchase Cotton Under Epidemic Situation?

In the middle of January, no one would think that the outbreak of new crown pneumonia was so fierce. After the Spring Festival, most of the cotton textile enterprises resumed their jobs one after another, and the cotton spot market was cold and clear.

From the survey point of view, as of mid February, most of the factories that had not yet finished processing were still shut down and shut down. First, the heads and staff of the mainland enterprises were unable to return to Xinjiang for 14 days. Two, the road transportation was basically stagnant. Three, warehouses can only handle online business and railway transportation, and other businesses have been suspended. Although a few warehouses can guarantee short or normal loading and unloading of motor vehicles, vehicles can not go on the road.

2 there are more and more textile enterprises returning to work in mid and late term. Cotton and other raw materials are urgently needed to replenishment. In the case of epidemic prevention and control, the task is still arduous. How should cotton enterprises purchase raw materials? I think there is little possibility for short-term purchasing personnel to go to Xinjiang and transport them.

First, pay attention to the annual warehouse warehouse receipts of 2018/19 in the inland bank. Because Chen cotton warehouse must be cancelled before the end of March, and in addition to the 2019/20 Xinjiang cotton moving to the mainland in large quantities, the seller has a larger profit margin.

Second, we must pay attention to the spot trade of Port Bonded and customs clearance. This Monday, although Zheng cotton has been largely sealed down, the ICE main contract has dropped to 68.3 cents / pound, showing a very weak (nearly 68 cents / pound closed in the past month, closing at 67.46 cents / pound), such as M 1-1/8, M 1- 5/32, Brazil cotton 1%, tariff import costs are 13200-13300 yuan / ton and 13400-13600 yuan / ton (net weight), compared with the mainland bank 3128/3129 grade Xinjiang cotton, the price has 300-400 yuan / ton advantage.

Third, concerned about the main producing areas of Shandong, Hebei and other the Yellow River basin 3128/3129 class real estate cotton. On the one hand, the mainland's road control is gradually liberalized and transportation efficiency is improved. On the other hand, the proportion of real estate cotton entering the regulatory library is very low, most of which are stored in the flower mill, not only fast, but also have advantages over Xinjiang cotton and outer cotton, which are suitable for spinning 40S and below.

Fourth, pay attention to Xinjiang cotton in the 2019/20 of the non Zheng cotton delivery warehouse in the mainland. Since there are still a series of expenses such as short sale and warehouse fee, the seller's quoted price is generally lower than the 100-200 yuan / ton of the warehouse warehouse cotton in the inland market.