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    India's National Cotton Price Stability

    2010/7/15 10:56:00 39

    Cotton

    According to the dealer report, in the past week, India Almost all cotton prices in the market are stable. The reason for the lack of market is the lack of large purchases. According to Raj Kurt's agent, export demand and domestic textile mill demand are normal. Therefore, cotton Prices remain stable.


    The price of Shankar - 6 cotton in Gujarat is 29200-29500 rupees / candy (356 kg), and the price of Maharashtra is 28500-29000 rupees / candy.


    The daily arrival quantity of Gujarat is about 5000 bags, and the weight of each pack is 170 kilograms. The price of unprocessed cotton is 700-720 rupees /20 kg.


       Monsoon season Rainwater is in time, so cotton production will increase to the highest of 35 million packets. The average price of cotton in 2009-10 years is 29000 rupees -30000 rupee / candy (356 kg). Therefore, farmers expand cotton planting. By the end of October, prices had been above 27000 rupees / candy for the year.


    Cotton planting area is projected to increase by 3%, especially in Andhra Pradesh and Karnataka.


    Some dealers believe that planting area may even increase by 7%.


    Last year, cotton planting area was 10 million 200 thousand hectares, probably 11 million hectares this year. The increased area may increase production by about 2 million bales.


    Supplement:


    China's monthly import and export value reached a record high in June, but the textile industry will not slacken.


    With the rising cost of labor and other factors of production and the pressure of RMB appreciation, the industry is expected to become more cautious in the second half of the year.


    "With the end of the first batch of replenishment in the European and American markets in 5 and June, the order of textile enterprises has been decreasing, while cotton prices have soared in the last two months, and the profits of textile enterprises have been eroded further." Zhu Yong, President of Shanghai Textile Holding Group Company, said recently.


    "I think the situation in the second half of this year is not optimistic, especially for the textile enterprises with high extroverts." Zhu Yong said that some overseas orders began to turn to suppliers in Southeast Asia, even if there were orders, profits were not high, and some were also losing money. "I know that before an enterprise took orders from Decathlon, it lost about 10000000."


    Data show that in July 9th, China's cotton price index reported 18419 yuan / ton, and continued to refresh its highest level in nearly ten years. Market expectations, cotton prices will further break through the 20 thousand yuan / ton mark.


    "The impact of cotton prices on the cost of textile industry is about 20%, so the price of cotton in this round will be greatly affected." Zhu Yong told reporters. In the past 5 months, cotton prices have continued to soar, rising by more than 30% per month, which has directly led to the rise in prices of raw materials such as cotton yarn and cotton cloth, which in turn will affect the cost of the textile industry and clothing companies in the middle and lower reaches.


    Data released by the Customs General Administration on 10 may show that textile yarn, fabrics and products exported 35 billion 650 million US dollars in the first half, an increase of 32.3%, an increase of 2.6 percentage points over the first five months, and a 53 billion 230 million increase in clothing exports, an increase of 16%, an acceleration of 2.9 percentage points.


    For the industry trend in the second half of the year, Zhu Yong said that the Shanghai textile holding company has made many preparations, and the processing of incoming materials is also under consideration. "This can avoid the risk of raw materials, and some larger lists should also choose to share risks with buyers."


    Shanghai Textile Holding Group has two listed companies, Shenda shares and leading shares, and owns many famous brands such as "three guns" and "Queen". "Through brand management, actively expanding domestic trade and exploring new sales models, such as Internet sales, is our strategy." Zhu Yong said.

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