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Inaction Seed Cotton Sales To Accelerate Progress

Jan 22, 2019

In 2018, Anhui Wuwei seed cotton purchase volume of more than 19,000 tons, about 7200 tons of cotton.

As of last week, the total sales of lint was less than 3,000 tons, and most of the cotton stocks were in the warehouse of processing companies. The main reason is: in the beginning of the new cotton market in 2018, the purchase price of seed cotton was too high, which led to an increase in the cost of lint. The sales at market prices were only meager or even at a loss. In the later period, the purchase price of seed cotton was reduced, and the average price reduction was 0.10 yuan/kg. The spot price of the market lint also dropped by nearly 400 yuan/ton. Only ten days from the Spring Festival, the spot market has been sluggish. It is difficult to see the possibility of going up. The bosses of processing enterprises are so worried, whether they are selling or not selling.

It is understood that on the 18th, several local companies are shipping lint cotton, and they have signed a sales contract of 100-200 tons.

According to the feedback from enterprises, the reasons for the sudden acceleration of lint sales are summarized as follows: 1. The year is approaching, enterprises are in urgent need of capital turnover, long-term cotton inventories, increased lint cost, and increased corporate burden; 2. Most enterprises through private financing Funds, one point per month. To celebrate the New Year, there is no way for enterprises to collect debts, and enterprises have no choice but to sell cotton in time to pay interest; 3, the market spot sales price has been in a downturn, Sino-US trade negotiations have been fruitless; 4, most textile enterprises need before the holiday Replenishment of the library, now the price of lint can be accepted, buy a batch of lint to prepare for the next year's production; 5, the lint sold this time is the middle-grade cotton, according to the quality of the site to reach the level of white cotton, the sales price of 14650- 14750 yuan / ton, the public settlement of the board delivery.

Judging from the above situation, most of the current sales prices, the profits of enterprises are small, and the management can save a small profit, but there are still a few companies waiting to hold on, and hope to have a good market after the holiday.