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[After 3 months, the cotton reserve round came to a successful conclusion]
Release date:[2020/10/26] Read a total of[96]time

After 3 months, the cotton reserve round came to a successful conclusion

The cotton reserve will be released from July 1st to September 30th, which lasted 3 months. During the round, bidding companies have been active in auction and reserve, and have maintained a high transaction rate, and transaction prices have generally shown a volatile increase.

From the perspective of transactions, since July 1st, the total number of listings was 504,400 tons, and the total transaction volume was 503,400 tons, with a transaction rate of 99.87%. Among them, Xinjiang cotton marketed 283,100 tons, with a transaction volume of 283,100 tons, with a transaction rate of 100. %; The market volume of mainland cotton is 220,900 tons, the transaction volume is 220,200 tons, and the transaction rate is 99.70%. One of the main reasons for the higher enthusiasm of bidding companies is that the textile and apparel consumption grading during the rounds is more obvious. The demand for low-grade cotton by textile enterprises has increased significantly. The cost-effectiveness of reserve cotton can fill the cotton gap to a certain extent. The bidding enthusiasm is high; in addition, the domestic cotton price is in the historically low price range, and traders are also very concerned about the reserve cotton, and the enthusiasm for bidding is high.

According to the national cotton trading market data, there are 264 companies participating in the bidding this time, including 183 textile companies and 81 traders. In terms of transaction volume, the cumulative transaction volume of textile enterprises was 234,100 tons, and the cumulative transaction volume of traders was 269,200 tons. From the two data, although the number of textile entrepreneurs participating in the auction is twice that of the traders, the auction reserves are lower than the traders. There are three main reasons for the low auction reserves of textile companies: first, in order to minimize the financial pressure of bidding textile companies, the auction and storage are mainly used as the auction; second, traders are actively bidding and stocking cotton, which squeezes the textile companies’ auctions to a certain extent. Storage space; third, in order to ensure cash flow, some small textile companies did not directly participate in the auction and storage, but chose to entrust traders to buy on behalf of the auction or directly purchase small batches from traders. Some bidding textile companies said that during the round, the market has a higher demand for conventional products. Reserve cotton is the preferred raw material for textile companies. However, the large number of traders auctioning for storage has narrowed the options for textile companies. They called on the relevant departments to restrict traders’ bidding for storage. Guarantee the cotton used by textile enterprises.

Generally speaking, under the influence of factors such as the continued global epidemic and Sino-US economic and trade frictions, demand in the foreign trade market has declined, and in-depth development of the domestic market has become the main goal of textile enterprises. With the adjustment of the domestic product structure, as the demand for low-grade cotton has increased significantly, the cost-effective reserve cotton has effectively filled the cotton gap for textile enterprises and reduced the cost of cotton to a certain extent.

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