test

Member ID:
Password:
Stay logged in for 30 days
close

login CCFGroup App

Insight | Time: Sep 29 2021 2:52PM  Editor:CCFGroup
Cotton linter price can stabilize before new sources arrive intensively
 
Text size

Cotton linter price kept rising amid tighter supply in the third quarter of 2021 because cottonseed market kept firm and continued to hit new highs in later period of 2021/22 crop year. Cottonseed oil plants and delinting plants were gradually closed due to high cost and high temperature, leading to less output of cotton linter and the price was pushed up by inelastic demand, even hitting a decade high.

 

Seed cotton procurement has started since the end of Aug and the price remains high due to production cut of cotton this year. Hand-picked seed cotton with ginning yield of 40% is mainly at 10-10.5yuan/kg in south Xinjiang, which is much higher than that of last year at 6.4yuan/kg. The harvesting of seed cotton is postponed this year and the arrival of new cottonseed and cotton linter is also later than that of prior years. Since the supply of cottonseed is increasing, the price has declined somehow. Cotton linter market is covered with wait-and-see stance and new linters are expected to arrive intensively after mid-to-late Oct.


image.png

 

In downstream segment, there is currently dual control on total energy consumption and energy intensity, so refined cotton companies in Jiangsu and Shandong are mainly closed due to electricity rationing and the demand for cotton linter will be reduced. The volume of machine-picked seed cotton will be gradually increasing and after new linters arrive on large quantity after mid-to-late Oct, the price is expected to drop, which may be largely stable in the short run.

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Related Articles
Cotton linter producers continue to quote up with less output
China's coal, crude oil and natural gas production and imports
China viscose market snapshot (Mar 19, 2024)
Viscose market daily (Mar 18, 2024)
China viscose industry operation report (Mar 1-15, 2024)
China chemical fiber market weekly forecast (Mar 18, 2024)
Refined cotton offers increase
China textile & apparel export in Jan-Feb 2024
China viscose market snapshot (Mar 16-18, 2024)
Cotton linter & refined cotton market weekly (Mar 9-15, 2024)
 
Research
Polyester industry chain operation during the Spring ...
2023 recycled market review and market outlook for 2024
PFY market pattern in 2024 and forecast before and after ...
Regional distribution and development characteristics of ...
Why PET flakes supply so tight?
 
 

娴欏叕缃戝畨澶33010902000742鍙