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Large Cotton Traders Hoard Cotton Speculation

2010/8/31 16:46:00 50

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Cotton Price Cotton Price Cotton Spinning

According to China

Cotton price

Index display standard

Cotton price

It has risen from the average price of 12831 yuan per ton in 2009 to 18165 yuan / ton in July this year.

Obviously, China's large scale

cotton spinning

Traders in the recent round of agricultural products "high fever", found the golden opportunity to make money -- because cotton yarn and cotton prices continued to rise, the company bought a few months ago with low price of cotton hoarding, a few months later, whether processing yarn sales or direct reselling, can get a lot of benefits.

At the same time, the price of raw materials is constantly being pmitted to downstream industries such as weaving, printing and dyeing, clothing and so on, and the profits of related enterprises are gradually being "swallowed up".

Big business hoarding cotton speculation

A large cotton textile enterprise in Zhejiang recently revealed that sales profits of cotton yarn were 10 times higher than that of last year, so that the high return that did not happen in 10 years benefited from the soaring price of cotton and cotton yarn and the operation of buying low cotton after buying cotton.

The above cotton textile business people revealed that this year, the sales profit of 32 cotton yarn is generally 5000 to 6000 yuan / ton, which is considered by the industry to be the highest level in 10 years.

And in 2009, the sales profit of cotton yarn was only 500 - 1000 yuan / ton, and the company only maintained its profit.

Quite a few of these gains have come from hoarding.

Under the stimulation of high returns, cotton textile enterprises have also reached a record high level this year.

A person who did business consulting for several cotton textile enterprises told reporters that most of the cotton spinning enterprises are mostly hoarding cotton, while cotton yarn is mostly stored in cotton yarn traders and dealers.

"The whole operation is nothing more than hoarding first, and then trying to raise the price."

He said that the scale of the required funds has made small cotton spinning enterprises unable to participate in the "feast".

In fact, some of the state-owned assets in Shandong were large in last year's selling of cotton reserves.

Textile enterprises

The way of operation is controversial.

The above-mentioned consultants said that such large enterprises pushed prices up in the auction of cotton reserves, thereby affecting the spot price of the market, and then converting the cotton that had been purchased at a low price earlier.

The ongoing 600 thousand tons of cotton reserve auction, the paction price is basically 18200 to 18300 yuan / ton, far higher than the government set the auction price of 16500 yuan / ton.

"In recent years, large cotton producers have basically taken away all the funds previously invested in real estate and used them for cotton speculation."

The above said that although the industry decided to take part in the cotton speculation or the capital in the industry, there were also some hot money in Zhejiang and other places through some consulting investment companies to gain profits.

At the beginning of this year, the Xinjiang Zhejiang chamber of Commerce estimated that at least 10 billion of Zhejiang's private capital withdrew from Shanxi coal mines and domestic real estate to Xinjiang's cotton market.