Judging from the quotations of some cotton traders and Xinjiang ginners, in order to speed up spot sales and quickly withdraw funds, cotton companies have taken the initiative to lower the Xinjiang cotton point price basis for 2021/22, attracting cotton spinning companies and middlemen to enter the market for procurement.
Cotton processing factories in Aksu, Bachu and other places in southern Xinjiang said that although the price of cotton picked by the “Double 29” machine in Xinjiang has risen to 23,100-23,200 yuan/ton, there are relatively few cotton traders and mainland cotton textile mills who actually purchase it. , only a small amount of cotton resources with low basis difference and low quotation can be negotiated and concluded. Therefore, Zheng cotton’s continuous rise since mid-January lacks strong support from spot transactions, and the market needs to be adjusted.
It is understood that due to factors such as the weakening of Xinjiang cotton relocation to inland consumption areas and the increase in road transportation prices in Xinjiang, the price difference between cotton inside and outside Xinjiang has recently expanded again from 400-500 yuan/ton in the early stage to 550-700 yuan/ton, traders , Xinjiang cotton enterprises’ bargaining space has expanded. Some traders and cotton processing companies in Xinjiang judge that due to the slow progress of Xinjiang cotton warehouse transfer in 2021/22, coupled with the recent severe epidemic prevention and control situation in some provinces and regions, the raw material inventory of most cotton spinning companies in the mainland is lower than in previous years. 2 There will be intensive demand for warehouse replenishment after mid-month. It is expected that Xinjiang cotton shipments will rebound significantly after the Spring Festival, and shipping pressure will increase.
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