Cotton Supply And Demand Is Tight &Nbsp; Highlights The Importance Of Product Research And Development.

With the revival of the global consumer market, the supply and demand of the cotton market is also becoming increasingly intense. The price of cotton and cotton yarn is particularly prominent, which has become a widespread concern of the industry.

Spot supply and demand tension

According to Yamaka Kenichi, President of Toyo cotton, the world's cotton consumption is 14% higher than its total output, and its inventory is 19% lower than that of last year. It has hit the lowest level in nearly 6 years.

In the US, one of the main cotton producing areas, which has an important influence on the global cotton market, cotton production has dropped sharply in the past year.

Due to further tension between supply and demand, the price of cotton has risen by 75% in the past year, and the price has even exceeded 80 cents per pound.

In the New York futures market, there is a recent phenomenon that the price is higher than the forward price in the past 8 years, which is also a strong demand for the spot market.

Meanwhile, the rise in cotton prices has led to the growth of cotton growers, leading to the growth of global cotton production led by the United States.

Therefore, the number of new cotton harvested after autumn harvest is expected to meet the market demand in the future.

At present, there is still a period from the autumn cotton harvest. During this period, the current situation of supply and demand asymmetry in the cotton market will continue.

The halting of India's export of cotton, the purchase of large quantities of Chinese enterprises and other general economic factors have had an impact on the cotton market.

The cotton futures trading order due in July is about to be delivered in real terms. There will be a lot of price wars around the orders due in July.

In any case, the growth trend of market demand is inevitable.

Industry experts said that retail sales in the US also showed two digit growth in March as consumers around the world restored confidence in the economic recovery.

Driven by this, the price of cotton products in the retail market will rise from the second half of 2010.

Super long staple cotton prices rose sharply

The largest cotton consumption in Japan is super long cotton.

Because of the decline in production and the increase in consumption, the number of extra long staple cotton is decreasing and the price is rising.

The decrease in production was due to the low market prices last year, which made cotton growers switch to other crops.

On the other hand, with the strong purchasing power of China, India and Pakistan, the global consumption capacity is slowly recovering with the recovery of world economy.

Especially since the beginning of this year, the tension between supply and demand is very prominent.

Compared with last year, the price of Egyptian and American Pima cotton climbed to 150 cents / pound from 110 cents / pound.

New cotton planting has a trend of regression.

The planting area of American Pima cotton has increased by 34% compared with this season.

Since some farmers in Egypt have switched to other crops, the increase has stayed at 12%.

The above 3 countries and Turkey and other emerging countries have a large upward trend in demand for high count yarn.

Although market prices are already high, the trend of future prices depends entirely on the demand of emerging countries that account for 75% of the total consumption of super long staple cotton.

Downstream can not digest costs rise

In Japan, there is a view that rising raw material costs reduce the proportion of personnel costs in total costs, which is beneficial to the competition between Japanese enterprises and international counterparts.

However, for most Japanese textile and textile workshop manufacturers, the rising cost of raw materials and lower product prices are the grim situation they have to face.

Pressure from the retail market to reduce product prices is increasing.

No matter how the price of cotton rises, the terminal market can not digest at all.

In the Japanese market, many manufacturing enterprises are under the pressure of deflation.

In recent one or two years, many domestic manufacturers in Japan have been hit hard by this market environment, and their production and operation conditions are deteriorating.

In order to escape the fate of cotton price containment, it is particularly important to develop new products and materials with unique characteristics.