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Cotton: A Special Strategy for Special Period before Spring Festival

Update:16-01-2017
Summary:

Spring Festival is near the stage of cotton and textile […]

Spring Festival is near the stage of cotton and textile enterprises dumping stocks, preparing raw materials, new focus period. The majority of cotton enterprises will actively sell, settlement benefits New Year; cotton spinning enterprises have to buy a number of textile raw materials to prevent winter and prepare for post-holiday production. However, the China Cotton Network correspondent in Jiangsu Province, some cotton-related enterprises in the survey, but few of this phenomenon.

Jiangsu cotton prices reflect little cotton harvest this year, most of the cotton prices have been sold lint, only a few cotton companies have cotton spot. Standard lint (Mainland) 15600-15800 yuan / ton, Xinjiang cotton to the factory price higher than the mainland at the same level of cotton 200-500 yuan / ton range, few transactions, Xinjiang cotton quality is better than inland cotton. Yancheng cotton prices stabilized slightly lower recently, only some of the larger northern Jiangsu cotton prices are still receiving cotton brokers seed cotton, flower prices 3.50 yuan / kg or so.

It is understood that, due to be made during the Spring Festival orders, and thus the current textile production at full capacity. The company's inventory is not large, small business stock of raw materials is about 15-20 days. With the cotton into the mainland market in Xinjiang, coupled with the March reserve cotton out, the market supply of cotton is relatively abundant, textile enterprises do not have to worry about supply problems. According to industry analysis, nearly a month cotton business is relatively less orders, combined with the Spring Festival holiday break factors, business demand for raw materials will not increase.

It is understood that the past is more common practice of textile enterprises before the Spring Festival hoarding some cotton, the one for the end of the year to increase production of the necessary resources, and second to open the door for the production of postganglionic preparation. However, such a business behavior now does not work, Jiangsu Dafeng Textile Industrial Park, said several veterans, nearly two or three years, textile raw materials warehouse empty, leaving only 10-20 days of raw materials inventory, according to the order procurement of cotton, Or less to stay inventory.

Now the textile enterprises to focus on sales, reducing the use of raw materials and funds, reducing the financial, product costs, the market is relatively saturated under the situation, is undoubtedly a Mingju. At this stage, the Jiangsu textile enterprises more decision-making thinking is the effective extension of production and marketing to March, perhaps when the domestic cotton market price trend will be a new benchmark. Therefore, enterprises in ensuring the production, to seize the moment of the case, do not leave a large inventory of some truth.

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