China reserved cotton sales review

From July 1 to August 5, 2020, the trading volumes of reserved cotton have reached 215,700 tons, with a transaction rate of 100%, accounting for 43% of the total planned selling volumes. Since the beginning of the auction of reserve cotton, the enthusiasm for purchasing reserved cotton has not diminished, and the purchase of textile enterprises and non-textile enterprises is different. This article analyzes the purchase of textile enterprises, trading prices, and the quality of reserved cotton, to make the transaction structure more clear. 1. Reserved cotton sales review From July 1 to August 5, 2020, the total trading volumes of reserved cotton has been 215,700 tons, with a transaction rate of 100%, accounting for 43% of the total planned selling volumes. Among them, sales of reserved Xinjiang cotton were 115,000 tons, with a proportion of 53.2%, and that of reserved upcountry cotton were 101,000 tons, accounting for 46.8%. The weighted average transaction price of reserve cotton was 11,559yuan/mt. Starting from July 21, the daily selling volumes of reserved cotton increased slightly to about 8,500 tons, and from August 4, the volumes increased again to about 9,000 tons. Since the beginning of the auction, the enthusiasm for purchasing the reserved cotton has not diminished, and the transaction rate has always been 100%. The high transaction rate has actually boosted market confidence. We have sorted out the specific situation of the purchase from textile enterprises and non-textile enterprises (the purchase of textile enterprises is directly by the spinning mills or it is clearly shown that the third partly is acting on behalf of the textile enterprises, and the purchase of non-textile enterprises is mainly from cotton traders). In the first four trading days, the proportion of purchasing volumes from textile enterprises reached above 60%, mostly for the replenishment with low cotton inventory. Later, proportion declined somewhat. According to traders, the sales of re-sold reserved cotton were unsmooth recently. From July 1 to July 31, the purchasing volumes of textile enterprises were 95,000 tons, accounting for 50.2% of the total transaction volume of 189,200 tons as of July 31, and that of non-textile enterprises was 49.8%. From the trading prices, average trading price of reserved cotton from non-textile enterprises was higher than that from textile enterprises. In July, the weighted average transaction price of textile enterprises was 11,492yuan/mt and that of non-textile enterprises was 11,606yuan/mt. 2. Reserved cotton quality In terms of the crop year and producing regions of reserved cotton, 2013/14 Xinjiang cotton and XPCC-origin cotton took the largest shares. Besides, textile enterprises were favorable to purchase 2013/14 Tianjin-origin cotton. From the perspective of color index, the proportion of 2012/13 yellow stained cotton accounted for the largest. From the perspective of length and strength, the textile enterprises mainly purchased reserved cotton with length 28mm and strength≥27gpt. 3. Top 10 textile enterprises and non-textile enterprises Top 10 textile enterprieses in July Item Enterprise Purchasing volumes (ton) Average trading price (yuan/mt) 1 Tiemenguan Xingyu Xinda Textile Co., Ltd. 5851 11090 2 Hubei Jin'an Textile Group Co., Ltd. 4318 11710 3 Guanxian Xinchang Textile Co., Ltd. 3993 11216 4 Gaomi Mengyuan Home Furnishing Co., Ltd. 2983 11844 5 Hunan Dongxin Group Yanling Textile Co., Ltd. 2850 11068 6 Hunan Kechuang Textile Co., Ltd. 2819 11480 7 Shandong Daiyin Textile Group Co., Ltd. 2675 11301 8 Hunan Hongrun Co., Ltd. 2369 11801 9 Hunan Louxing Textile Co., Ltd 2219 11663 10 Jiangsu Shengrun Cotton Textile Co., Ltd. 2107 11656 Top 10 non-textile enterprieses in July Item Enterprise Purchasing volumes (ton) Average trading price (yuan/mt) 1 Zhejiang Sibang Industry Co., Ltd. 13321 11340 2 Beijing China-Cotton International Ltd. 10134 11842 3 China CO-OP Group Nantong CO-OP Development Co., Ltd. 8697 11859 4 China SDIC International Trade Nanjing Co.,Ltd 8147 11545 5 Zhejiang Hangshi Energy Service Co., Ltd. 7321 11545 6 Shanghai UnionCotton E-commerce Co., Ltd. 5967 11658 7 China National Cotton Group Langfang Storage Co., Ltd. 3383 11426 8 Henan Yian Supply Chain Management Co., Ltd. 3224 11713 9 China-base Ningbo Group Co., Ltd. 3021 11464 10 Changzhou Keteng Textile Co., Ltd. 2952 11276 From July 1 to August 5, 2020, the total trading volumes of reserved cotton has been 215,700 tons, with a transaction rate of 100%, accounting for 43% of the total planned selling volumes. Among them, sales of reserved Xinjiang cotton were 115,000 tons, with a proportion of 53.2%, and that of reserved upcountry cotton were 101,000 tons, accounting for 46.8%. The weighted average transaction price of reserve cotton was 11,559yuan/mt. From July 1 to July 31, the direct bidding volume of textile enterprises was 95,000 tons, accounting for 50.2% of the total transaction volume of 189,200 tons as of July 31, and the bidding ratio of non-textile enterprises was 49.8%. In July, the weighted average transaction price of textile enterprises was 11,492yuan/mt and that of non-textile enterprises was 11,606yuan/mt.

Source: ccfgroup.com