Stimulating shipment, cotton companies start the "high quotation, big profit" model

It is understood that although on July 20th, the prices of Xinjiang machine picked cotton for warehouses in Shandong, Jiangsu, Henan, and other regions were generally raised to 18000-18200 yuan/ton (the CF2309 contract fluctuated upwards in the morning), actual transactions were relatively rare, and some cotton enterprises could only adopt a "high quotation, big profit" model to stimulate shipments, but it is difficult to change the overall sluggish situation of textile enterprises in receiving goods. A textile enterprise in Xuzhou, Jiangsu Province has judged that compared to the strong increase in upstream cotton and other raw materials, small and medium-sized cotton textile enterprises are deeply trapped in an extremely unfavorable situation of larger cotton yarn losses, increased yarn inventory rate, tight cash flow, and increased expenses. Therefore, either the pressure of cotton yarn cost inflation is transmitted and released to downstream and terminal areas, and the industrial chain is gradually streamlined; Either the price of cotton gauze is "standing still" and the pressure is pushing upstream, causing cotton processing companies/traders to give up profit space. Otherwise, they will continue to be in a "dilemma, facing both sides". In July and August, more and larger textile companies will be forced to choose to reduce production or even stop production to reduce losses.