Hateful: The US And Europe'S Goods Export Ban Act To Xinjiang Takes Effect, And Enterprises Are On The Verge Of Collapse

 

As the price of cotton is lower than 18600 yuan, but the quantity of the first batch is only 300000-500000 tons, which is difficult to relieve the pressure of over 3 million tons of unsalable sales in Xinjiang. Moreover, it is unable to bear the floating loss of 7000-8000-9000 yuan per ton into real losses. A large number of small and medium-sized cotton ginning plants in Xinjiang will be forced to close down and be eliminated, resulting in the cotton industry enterprises in Xinjiang on the verge of complete collapse.

At present, there are still more than 3 million tons of cotton in stock in Xinjiang, with floating losses of more than 8000-9000 yuan per ton; Xinjiang spot market sales price 16500-17500 yuan, also no market; If US cotton Zheng cotton futures prices continue to fall, it will be worse.

In 2021, the market liquidity is abundant, the prices of bulk commodities are going up, and the cotton processing capacity in Xinjiang is seriously oversupplied, resulting in serious seed cotton harvest. The sharp rise in seed cotton prices will push the cotton processing cost in Xinjiang to the highest level in nearly 10 years in 2021 / 22, and the cost of cotton ginning plants during the acquisition and processing period is mainly 23000-25000 yuan / ton. After that, cotton cost and spot price continued to hang upside down, ginning plant always lost money, resulting in lint sales progress seriously lagging behind in previous years.

In June, Xinjiang lint processing was completely completed, and the high cost had been solidified. The cost increased with the increase of storage fee and capital cost, but the lint market price accelerated to decline. The inversion degree of lint cost and spot market price deepened, and the ginning plant faced more serious losses.

With the sharp fall of ice US cotton price in July, the cost price of China's imported cotton will again be lower than that of domestic cotton, which also makes it possible to use the first 400000 tons of imported cotton processing quota and the quantity of batch quota issued at low price in the future.

With the aggravation of global economic inflation, risk aversion in the international financial market is heating up, and the international cotton price has declined. The domestic consumer market is still in the doldrums, cotton prices rise lack of support, it is expected to maintain a weak trend in the short term.