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Cotton Prices Continue To Fall &Nbsp; Cotton Enterprises Are In A State Of Anxiety.

2011/5/23 14:01:00 54

Although cotton prices fluctuated last year, the market looked good.

Goods in stock

In less than 2 months, the price dropped from 34000 yuan / ton to 24000 yuan / ton, or nearly 30%.

According to industry analysis, the increase in production and the decrease in demand are the main reasons leading to the drop in cotton prices.

Recently, due to the low cotton prices along the way in Yiyang area of Hunan Province, some cotton enterprises have stopped collecting, and the difficulties in the delivery of lint and the falling prices make these cotton enterprises feel entangled, and the overall sale of the market is rather cold.

According to the head of a local textile enterprise, textile enterprises have been subjected to

Yarn finished products

Shipments problems, many small and medium enterprises new orders are weak, inventory pressure is huge, some textile enterprises have ceased production price promotions, but the goods have not been substantially improved.

Moreover, because of the rising labor costs and raw material costs this year, the price of finished yarn has been falling continuously. The profit margins of textile enterprises have been squeezed again. Some textile enterprises have already suffered losses. Facing the current dilemma, some enterprises have stopped production and holidays, waiting for the May market to turn around.

The cotton market in Changde, Hunan is still in the doldrums, and cotton prices are still falling slightly.

Buy

The work is almost over, and the lint market is not stable. Cotton companies are afraid to buy cotton seeds again. It is estimated that the remaining seed cotton in the local market is less than 10% of the total output. Therefore, the main task after the cotton processing plant should be to sell lint and return the funds.

It is understood that due to the recent decline in yarn prices, resulting in local textile enterprises profit margins become smaller, so funds have been in a more tense state.

According to local textile enterprises, the recent yarn prices continue to fall, and the actual turnover has not improved. The problem of capital chain is one of the problems that plaguing textile enterprises. Most enterprises have no extra funds to buy and expand production of cotton lint. The cotton enterprises have shown some confusion over the continuing weakness, and most of the textile enterprises are already unable to purchase.

Moreover, since June, the central bank or the interest rate increase is expected to increase. This makes the cotton enterprises which are already very tight capital will be even worse. The output of local large textile enterprises is also affected by some factors, but due to relatively fixed customers, the quota of cotton imports is large, and the normal operation is not very difficult.

Since the launch of new cotton last year, after the Spring Festival this year, although the price of cotton has fluctuated several times, the overall price is upward. The cotton price at that time exceeded 34000 yuan / ton, but now it has gone down to around 24000 yuan / ton.

It is understood that, due to the continuous decline in cotton prices and dragged down the cotton yarn and cotton market, domestic textile enterprises sales fell sharply, and generally fell into production difficulties.

For the future trend of cotton prices, the industry generally believe that it is likely to continue to fall.

CIC consultant light industry researcher Xiong Xiaokun said: from the market level, the sales peak season of textile enterprises is mainly concentrated in the 3-4 months of the year, but this year, the market sales are in a continuous downturn and the later growth space is narrowed. From the national level, the inflation pressure is still continuing, the state will continue to take monetary tightening or other intervention measures, and the domestic policy environment does not allow the price of cotton to rise significantly; in addition, influenced by the global economic development and various political factors, the international cotton spot market has slipped.