Henan: rising cotton prices put pressure on reducing raw material inventory

On June 11, in order to further understand the production, orders and inventory of textile enterprises, the reporter went to the textile enterprises in Shangqiu City, Henan Province to continue the investigation.　　 The person in charge of an interviewed company told reporters that there are currently high-debt textile companies in Henan, and their production and operation are not optimistic. The production and sales of textile companies with relatively sufficient funds have remained normal. It is understood that due to the severe foreign trade environment in the market, some companies have a serious problem of overstocking of combed yarn stocks, and individual companies have a backlog of products of about 700 tons. In order to avoid increasing losses, combed yarn manufacturers with large inventories choose to wait and see and sell combed cotton yarn when the market improves.　　 Another company said that it started to resume work on February 21 this year, and the current production has returned to normal, and the operating rate has reached 100%, and the cotton yarn inventory is also small. The reporter learned in the workshop that the workers of the enterprise adopt a three-shift production system and the machines operate 24 hours a day. The person in charge of the company said that due to the unstable cotton price, the raw material inventory is small. The company's cotton inventory was three months ago. At this stage, the cotton inventory is only 40-50 days, and the cotton yarn inventory is only about 10 days. Companies basically choose to replenish the stock when cotton prices fall or purchase cotton according to order requirements. The reporter learned that the carded yarn produced by the enterprise is mainly used for the enterprise's own use, while the combed yarn produced is mainly used for external sales. The current price of 40s carded cotton yarn with high content is 20,000 yuan/ton, and the profit is low.　　 Companies believe that cotton prices will rise in the long run, but in the short term, due to concerns about Sino-US economic and trade relations and foreign epidemic control, there is still greater pressure on cotton prices. Article keywords: 　Henan investigates cotton cotton yarn yarn cotton price inventory