What Is The Most Lacking In Cotton Spinning Market?

Following the yesterday's limit, Zheng cotton's contracts have been sharply lower today. Under the circumstances of Global trade, communication and economy, no matter whether ICE or Zheng cotton are like a small boat, the course is no longer in the hands of the fundamentals, but can only drift with the tide.

Although the ICE main contract has fallen below 10 years low 54.53 cents / pound (low 53.64 cents / pound), Zheng Mian CF2005 also fell below 11000 yuan / ton, but from the cotton business, investors and market sentiment, it seems that it is too early to say. Some believe that the lack of confidence in the market is the lack of funds and policy support. Others think that easing logistics and transportation is a pressing matter of the moment. My views are as follows:

First, cotton spinning enterprises are short of orders. From the survey, with the global outbreak of the new crown outbreak in February (Middle East, Europe, the United States and Southeast Asia successively falling), China's foreign trade exports and short and medium term orders have shrunk or even stopped, and some domestic orders have also fallen sharply. Therefore, a large proportion of domestic spinning, weaving and garment enterprises are facing the pressure of just resuming production, resuming production, and reducing production and stopping production. The inventory of finished products is rising, and customers are largely disappearing. Orders are the key to the survival of enterprises.

Secondly, cotton spinning enterprises lack "target" and lack scientific judgment on the ending of the new crown. At present, the epidemic is rampant in Asia and Europe, and spinning and weaving enterprises are unable to arrange production and purchase orders. Guangdong, Jiangsu and Zhejiang, Shandong and other textile and garment enterprises feedback, in the spring of 2020, clothing due to epidemic, logistics and market closes and a large number of inventory, and some manufacturers sold less than 20% of the plan, a large number of funds. At present, the biggest variable is autumn and winter orders. Internal and external trade is just like "hot potato" (usually a longer period, larger quantity, larger amount). After receiving the purchase, the buyer is worried that the buyer will cancel the order due to the end of the epidemic, resulting in a large backlog of products and the risk of bankruptcy. Otherwise, the 4-5 month may fall into a dilemma of shutting down production.