Small And Medium Sized Textile Enterprises Full Recovery Into New Impetus

In the small and medium sized textile enterprises in Yuncheng and Xiajin counties of Shandong Province, we know that the enterprises are basically open in all three classes, with daily delivery and very few stocks.

The recovery of SMEs is more beneficial from inside and outside.

The narrower price gap between the two has been reduced from 5000 yuan / ton last year to 1000 yuan / ton this year.

The reduction has given impetus to small and medium-sized enterprises, so that they are in harmony with

There are more chips in the confrontation.

At the same time, small and medium-sized enterprises are also developing towards quality improvement and multi variety management.

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Although textile enterprises occupy large funds, they mostly reflect the smooth flow of funds, and they can get lower interest rates in local banks and rural credit cooperatives.

In addition, enterprises also reflected that the phenomenon of credit arrears decreased significantly. At present, enterprises do not give money or delivery.

This also reflects the pformation of enterprise capital.

The direct subsidy policy continued to be implemented and the cotton planting area decreased.

In March this year, the state announced that the direct subsidy price for the new year's Xinjiang target was 19100 yuan / ton, down 800 yuan / ton compared with last year.

The mainland is expected to continue in accordance with last year's subsidies, that is, the subsidy amount is 60% of Xinjiang's subsidy and the upper limit of subsidy is 2000 yuan / ton.

In recent years, cotton yields have continued to decrease, labor costs have increased, and cotton planting areas in the mainland have continued to decrease. Xinjiang has also cut down more than 10% of its area under the task of reducing the planting area.

Cotton planting area has dropped sharply this year, with a drop of about 20% and output has also declined.

In the next year, the national output is estimated to be between 5 million 200 thousand and 5 million 500 thousand tons, and there is no possibility of a larger supply gap in the next year.

The difference between inside and outside cotton prices has narrowed, and textile enterprises have improved.

The difference between domestic and foreign cotton prices is narrowed, and the impact strength of imported yarns is weakened.

Although the products of large textile enterprises are not substitutable with foreign products, the low price of raw materials also reduces the cost of production.

At the same time, the price difference between cotton and alternative raw materials has been shrinking, which has also increased the amount of cotton used by some non cotton textile enterprises.

Cotton prices are rising.

First, it is not only the reduction of cotton planting area in China, but the cotton planting area of the United States and India is also in a decline state.

Second, last year, the domestic cotton market has reached the largest inventory in history. From next year, the new inventory cycle will start.

Third, next year, the government may continue to impose strict control over import quotas to match the sale of State Cotton stores.

Fourthly, the profits of downstream textile enterprises are resumed, and SMEs have more chips to compete with foreign enterprises.

Under the combined effect of the above factors, the general direction of cotton market is upward.

However, the selling pressure of national cotton can not be ignored. In the later stage, cotton prices will resonate with the selling price, showing a ladder like trend, and the center of operation will gradually increase.

In terms of futures contract operation, we can gradually arrange more than 1601 and 1605 contracts in the long term.

1509 the contract is subject to the selling pressure of the national cotton store. If it is sold in the range of 13000 yuan to 13500 yuan / ton, the price of the 1509 contract can hardly rise sharply.

However, the cost of its bottom support is more obvious, before entering the month of delivery, prices are not likely to fall sharply.

Arbitrage, the central line can try to throw 1509 contracts to buy 1601 contract reverse operation. With the differentiation of the two contracts, the price difference between the two parties is expected to further expand.