Recently, some cotton enterprises and operators in Xinjiang have reported that although the number of small and medium-sized cotton textile mills inquiring has increased, the requirements for lint quality are not high (length of 28mm and above, strength of 28CN and above, and horse value of 5.2 or less), but most cotton spinning enterprises put forward the requirement of "delivery to the factory, cash on delivery", which is somewhat difficult for cotton enterprises, especially for cotton enterprises that use loans from the Agricultural Development Bank, credit cooperatives and other commercial banks. Since cotton must be paid off in full if it wants to leave the regulatory warehouse, cotton enterprises generally require cash in the regulatory warehouse inside and outside Xinjiang, not on credit, and not accept acceptance bills or domestic letters of credit.
A cotton enterprise in Aksu said that since mid-to-late March, some customers in southern Jiangsu, Henan, Hubei and other countries have contacted the goods, and the price given is 100-150 yuan/ton higher than the market price, but the seller needs to deliver the goods to the factory without paying a deposit.
A few days ago, some cotton-related enterprises reported that they received a notice from the freight department of the Urumqi Railway Bureau, and the cotton freight rate was reduced by 30%, and the cotton storage warehouses in Aksu, Bachu and other places in southern Xinjiang also said that they had received a notice from the Railway Bureau that the cotton transportation price would be adjusted before the end of March, but the reduction was not expected to be as large as 30%.
After the Spring Festival, the overall price of cotton out of Xinjiang was lowered, and the cost of direct delivery from the warehouse to the mainland cotton textile mill was slightly higher than the comprehensive expenditure of railway transportation (including wagon agency, loading and unloading of the inland warehouse, storage fees, etc.) 50-100 yuan/ton or even flat, and the railway freight rate was forced to be lowered. In addition, the focus of the railway freight rate reduction is coal, metal energy and other industries, and according to the China Railway Administration issued by the "Notice on Promoting the Reform of the Railway Supply Side and Deepening the Spot Logistics Proposals", the railway bureau's transportation price reduction has been expanded from the current 15% to 30%, and only continues to reduce by 15%. In any case, the reduction of the cost of cotton railway transportation out of Xinjiang is a real benefit for cotton and cotton textile enterprises inside and outside Xinjiang.
