What is the root of the roller coaster of cotton linter price? – ChinaTexnet.com
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What is the root of the roller coaster of cotton linter price?

2022-08-11 08:13:49 CCFGroup

China cotton market is covered with pessimism caused by several factors and prices have declined sharply. Cottonseed price is slipping amid wait-and-see stance and cotton linter price also keeps falling amid thin trade and oversupply.

 

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Panics are spreading in cotton market with prices tumbling recently and cottonseed also follows down. The spot price of cotton 3128 has plummeted to around 15,100yuan/mt from 21,000yuan/mt at the beginning of Jun, losing ground by almost 6,000yuan/mt or 30% in two months. Cottonseed produced outside Xinjiang has dropped to 3,250-3,280yuan/mt from 4,000yuan/mt and Xinjiang-origin cottonseed has fallen by almost 800yuan/mt or 17% from 4,600-4,700yuan/mt to 3,900yuan/mt in Chinese inland.

 

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Bulk commodity market aboard is much volatile due to the influence of macro economy. Cotton linter market has witnessed thin trade with stocks being piled up when downstream users focus on consuming the feedstock inventory. Moreover, the fast reduction of cotton linter consumed by staple-grade cotton linter pulp mills has led to oversupply of cotton linter market, and the price has dropped rapidly to the level when it started to increase at the beginning of 2021.

 

Cotton linter as the source of cotton linter pulp and refined cotton witnesses relatively demand in refined cotton and specialty pulp fields, while there is bigger flexibility in cotton linter pulp market. The demand from cotton linter pulp, especially staple-grade pulp has been decreasing this year, with the proportion falling to 22% from 31% in 2021. Considering the current cotton market sentiment as well as the arrival of new cotton and cottonseed after Sep, cotton linter market is expected to remain in the doldrums with continued falling price in the short run.

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