The recent performance of each link in the cotton and cotton by-product chain has been quite different

The recent performance of each link in the cotton and cotton by-product chain has been quite different. Among them, fibers are generally strong, while the downstream is mostly weak, and refined cotton price even drops instead of rising. The mainstream price of industry-grade refined cotton has fallen by 200yuan/mt to 9,400-9,600yuan/mt. Therefore, it is not easy for cotton linter to keep rising when downstream prosperity declines, especially the end-user demand of cotton linter pulp and refined cotton has not improved much.

To sum up, the surging cotton price has stimulated the bullish sentiment of related products. However, due to the differences in the supply and demand fundamentals, the performance of each link is not the same. If cotton price continues to rise later, cotton linter is likely to be pushed up. However, when downstream demand is weak at present, the upward momentum of cotton linter has been restrained, and there is no clear orientation for the time being.