Spinning units in Jiangsu to participate in state cotton auction

Recently, influenced by a decline in auction price and volumes of state cotton reserves, spot price of lint cotton has slightly dropped in Jiangsu and so local spinning units are prepared to participate in the auction of state cotton reserves. It is reported that transaction price of local cotton in 328 grade is 13,000 Yuan per ton, down 50 Yuan from the previous week. Spinning units have accepted the current auction price level; especially since the release of old cotton is more attractive to local textile manufacturers. At present, cotton stock of local enterprises is almost exhausted and current market is not optimistic for textile industry, and the industry still faces pressure on sales of finished goods as well as financial problems. Factories have to ensure stability of operation and workers by insisting on certain scale of production, so they will also have to arrange for additional funds to participate in the auction and also solve problem of inadequate raw materials Read More..