In July, the off-season textile mills will stop to expand their business opportunities in Xinjiang.

After entering July, the domestic cotton textile industry has clearly entered the off-season – orders have been reduced, production has been cut to increase production, and some small enterprises have been the iron generals to take the door, workers go home to escape the heat. But during this period, the author found that many companies are more busy.

First, busy with building a factory in Xinjiang. With the rapid development of Xinjiang cotton textile industry, its bearing capacity and adsorption capacity are obviously strengthening. In 2017, it became a key year for mainland textile companies to go to Xinjiang to build factories. According to some manufacturers in Henan, Shandong, Jiangsu and other places, investing in Xinjiang has three major advantages: First, the policy benefits are huge. In recent years, the preferential and subsidy policies of the state and autonomous regions have caused the cotton yarn cost in Xinjiang to drop by 2,000 yuan/ton, making the cotton yarn of Xinjiang origin extremely competitive. Second, the raw material resources are abundant. National Bureau of Statistics data: In 2016, the national cotton output was 5.343 million tons, of which Xinjiang's output reached 3.594 million tons, accounting for 60% to 70%. Furthermore, Xinjiang cotton is highly recognized for its spinnability and ease of assembly. It can be said that Xinjiang invested and built factories backed by resources, and they were able to live in the world. The third is the agglomeration effect. The development of any industry, the agglomeration effect will make the superiors better, more competitive, and more suitable for life development. Xinjiang is becoming a world of cotton textiles in the world. It is a big and promising future. Therefore, many mainland textile mills have gone to Xinjiang for inspections, investigations and negotiations in the off-season in July, and intend to lay a farther future in Xinjiang.

Second, it is busy for Xinjiang to plant factories and rent production lines. From the point of view of cotton processing, this year has a prominent feature: the reduction of the mainland ginning factory to Xinjiang, the number of textile enterprises is increasing. There are two reasons for this:

1. The mainland is crowded and can't stay any longer. Some small-scale textile enterprises have been fighting price wars with the same industry since the establishment of the factory, and they have been wounded and wounded. Now, the mainland can't do it anymore, so I changed my mind to Xinjiang to find opportunities.

2. Extend the industrial chain and get reliable resources. Including large-scale textile enterprises, to the Xinjiang package factory, the factory is currently personally acquired, personally processed, personally shipped, in order to reduce costs, use reliable resources, but also prevent the year of production reduction.

In recent days, the author has learned more about communication with many textile enterprises. Most of them said that in July, they had reached the final stage of the final stage of the package factory and the leased production line in Xinjiang. Since August, they have to run funds and repair equipment to be collected. Therefore, in July, for some enterprises that have the willingness of the contractor, they are running on the land of various cotton areas in Xinjiang.

Third, bidding for reserve cotton, busy on the bargain. While other companies are blaming others, but they are helpless, some manufacturers are quietly increasing their bidding efforts to make a "bargain-hunting" replenishment.

How do you call the "bargain-hunting" replenishment? Where is the price of cotton this year? I am afraid no one can tell. However, some textile mills believe that the cotton in the near stage is already falling, and the "iron bottom" is being established. Reason: First of all, the spot cost has been upside down to 700-900 yuan / ton. Under the support of cost, cotton prices can fall again. Secondly, in recent days, Zheng cotton has also been "steady" and is gradually picking up lost ground, CF1709 The contract also steadily stabilized the strong psychological support of 15,000 yuan / ton. Therefore, since the beginning of this week, the national reserve cotton transaction rate has shown an upward trend, especially the volume of reserve real estate cotton has increased significantly.

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