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    Textile Enterprises Try To "Grab Raw Materials" &Nbsp; Do Not Hoard Goods Into Business Strategy.

    2010/7/23 21:17:00 39

    Cotton Price Spinning Enterprises

    In July 20th, although the spot price of cotton fell to 18297 yuan per ton, but in the face of high cotton prices, many textile enterprises in the territory were still cautious about the market outlook.


    "The price of cotton lint at present is basically around 18500 yuan per ton, up 4000-5000 yuan per ton compared with the same period last year, but the increase in cotton yarn and cotton cloth is far from that."

    A state-owned cotton in Shihezi

    Spin

    Cao Xin, director of the plant and factory office, said that the cotton yarn and cotton cloth in the factory was mainly distributed to Jiangsu and Zhejiang provinces. The average price of cotton yarn was about 33000 yuan per ton due to the rising price of raw materials, compared with the same period last year, the price of cotton yarn increased by 5000 yuan, and cotton cloth was basically 6 yuan per meter, compared with the same period last year, the price of cotton yarn rose by 1 yuan to the left and right.


    Cao Xin calculated an account. Compared with last year, the increase of raw cotton alone reached about 30%, while the increase of the product was less than 20%, coupled with the increase of pportation, labor and other costs, which were squeezing profit margins step by step.


    Similarly, Zhao Yang, manager of the raw material cotton purchasing department in Urumqi, is also in a dilemma. "The purchase price is too high and the turnover period of production and sales is about two months. During this period, the market price risk is great. If the goods are not stocking, the production will be broken after the new cotton comes into the market."


    Zhao Yang said,

    cotton

    The rise of prices has further increased the risk of enterprises. Now Xinjiang's lint supply is tight. Basically, it needs to be imported from the mainland. In this way, the cost increase caused by the rising price of lint cotton is increased. Compared with the textile enterprises in the mainland, Xinjiang still has pport costs for pporting cotton lint and pporting cotton yarn. This part of the cost is also self absorbed by enterprises.

    As the cost increases further, the downstream customers do not buy it. Many customers begin to wait and see when the price rises.


    In the interview of a number of textile enterprises, the rise in cotton prices is also due to the apparent lack of supply in the market as early as March. Many textile enterprises are trying to "grab raw materials", so the price is getting higher and higher.


    For the late trend of cotton prices, a company official said that according to the law of value of market economy,

    commodity

    The price is affected by the supply and demand of the market and fluctuates around the value. When the commodity supply in the market is less than the demand, the commodity price will rise. The specific increase will depend on the size of the difference between supply and demand. After all, the fluctuation of the price should also be centered on the value. The price of the raw material exceeds the value of the commodity itself, and all enterprises have a rare tacit understanding when they purchase the goods. They are determined not to hoard the goods and how much they use.

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