Cotton Price Analysis: Can We Reverse The Key To See The Domestic Demand Market?

Judging from this week, the spot price of domestic cotton has entered a relatively stable period. The pickup price of three grade lint cotton manufacturers in Hebei, Shandong, Henan and other places is about 10000 yuan / ton, 10200 yuan to 10300 yuan per ton, and 10000 yuan / ton of net weight in Anhui and Hubei. The acceptance price of cotton mills in Jiangsu and Zhejiang and other places is 10500 to 10900 yuan / ton, but most of them are 50% to 70% first payment. Other goods are paid at least one month later.

A cotton processing plant in Wucheng, Shandong, sent two batches of cotton to a cotton mill in Changshu in the early September at a price of 12800 yuan / ton, with a down payment of 70%, while the other 30% contracts were paid within 20 days to 30 days. But until now, the cotton mills believe that the current cotton price has dropped to less than 10500 yuan / ton, and the other 30% goods have to be deducted from the corresponding price difference. The price of the cotton is 70%.

It is reported that by the impact of the sharp decline in cotton prices at home and abroad for nearly a month and a half, the proportion of domestic cotton spinning enterprises has increased significantly. Some Xinjiang cotton enterprises and foreign businessmen have reflected that since this year, the integrity of some large and medium-sized cotton mills has dropped significantly. With the new contract, the contract fell below 40 cents per pound, and the three grade cotton of the real estate broke through the 10000 yuan / ton bottom line. The purchase of Xinjiang cotton and imported cotton contracts in 6 and July were torn apart.

From the survey point of view, at present, the number of new cotton in the domestic port Port Free Trade Zone is basically less than that in 2008/09. There is still a certain amount of stock in India cotton in 2007/08, and sales are not smooth.

It is reported that the Ministry of finance, the NDRC and other relevant departments recently recruited the cotton association, the cotton textile association and a number of representative cotton mills to discuss deeply about the current production and sales situation and the difficulties encountered. In view of the "high tax and low deduction" problem raised by some enterprises in the cotton textile mill's value-added tax, the relevant departments indicated that they should be treated with caution because of the relatively wide tax revenue involved, and they would also listen to various opinions and explore further.

At present, the progress of cotton purchasing and processing in the mainland is about 50%, and the 400 type factory is in hot pursuit, while the 200 type factory stops and waits.

According to the statistics of China Cotton Textile Association, the main business income of cotton textile industry increased by 17.38% in the 1~5 months this year, the growth rate dropped by 6.59 percentage points, the total profit grew by 8.37%, and the growth rate dropped 35.49 percentage points year-on-year.