Analysts say domestic cotton prices may rise

Analysts say domestic cotton prices may rise Analysts recently said that in the future, domestic cotton prices may rise in a wave, and then may return to a stable decline.

A recent survey found that due to the downturn in the market, cotton traders and textile mills did not receive goods, basically no cotton stocks, and the industry's operating rate was low. The low inventory shows price increase. Maybe after a cotton purchase order appears, the market is expected to follow suit. The domestic cotton price is expected to reach 20,000 yuan-22,000 yuan per ton. After the market, domestic cotton prices will be reduced to a stable return.

At the demand level, the market is still relatively sluggish. Due to the extremely low processing profits of enterprises, orders may lose money in the current environment. As a result, this has caused the suspension of production of small and medium-sized textile enterprises. At this stage, domestic and foreign cotton prices are sluggish, and companies are delaying orders.

The suspension of production by SMEs will reduce market supply. Our survey found that many SMEs are reducing the number of workers, and some factories simply shut down their factories. For them, maintaining production losses is even greater. Another reason for judging the future of cotton and the downstream textile order price may be mentioned is that from October to November, the textile mill will negotiate with the cotton trader to use the cotton plan for the next year, and the order status of the industry may improve. At present, companies are delaying orders and trying to release orders after the order price rebounds in the future. This part shows that companies will judge that the market will improve in the future.

A medium-to-large cotton trader, who declined to be named, explained that at present, the company's existing stocks are indeed less, but it is also necessary to calculate the stocks outside the company's warehouse. "In the first half of the year, we auctioned some countries reserve cotton, which is still in the state reserve cotton warehouse. At the same time, in July, the company purchased a batch of cotton, which will be delivered before March next year."

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