Cotton: Throw And Store Smoothly For &Nbsp; Cost Pressure Is Not Reduced.

At present, the sale of state cotton and cotton is steadily developing, alleviating to some extent.

Since last October, China's cotton prices have gone up and set a record high, making textile enterprises especially

Cotton throwing and storage work smoothly

State reserve cotton throwing and storing work has been carried out until now.

According to relevant information, as of September 9th, the total amount of cotton stored in the market reached 340 thousand and 700 tons, and the actual turnover was 339 thousand and 700 tons, with a turnover rate of 99.7%. The total amount of cotton put into operation was 56.62%, and the average cotton rank was 3.75, the average length was 28.32mm, the weighted average price was 18043 yuan / ton, and the turnover price of 328 cotton was 18391 yuan / ton.

The market price of cotton is still high.

At present, the sale of state cotton and cotton is steadily developing, and has played a positive role in easing cotton shortage to some extent.

However, judging from the trend of the paction price of national cotton and the spot market price of cotton, the selling of national cotton and cotton does not play a significant role in stabilizing the spot price of China's cotton market.

Judging from the price trend of the cotton market, it was only slightly loose in late August, but in September, it again showed the trend of accelerated growth.

The sustained high cotton prices are mainly affected by the following factors:

First of all, from the demand side of cotton, there is a strong demand in the downstream market.

Since the beginning of this year, thanks to the continued prosperity of the domestic market and the warmer demand in the international market, the production of textile and garment industry in China has recovered rapidly, and the export trade of textile and clothing has greatly increased.

In 2010 1~7 months, more than 5.37 Textile Enterprises above Designated Size realized total industrial output value of 2 trillion and 512 billion 766 million yuan, an increase of 25.14% over the same period last year, and all sectors of the textile industry increased significantly. Cotton textile industry grew by 26.78%, the apparel industry grew by 21.18%, and the finished goods industry increased by 27.97%.

Over the same period, the total export volume of textiles and clothing reached US $112 billion 619 million, an increase of 23.15% over the same period last year, and the growth rate increased by 34.27 percentage points over the same period last year.

Secondly, from the perspective of cotton supply, cotton production at home and abroad decreased significantly in the same period of 2009/2010.

According to the relevant information, 2008/2009 cotton year, China's domestic cotton prices are low, seriously hurt farmers' enthusiasm for planting cotton, coupled with natural disasters, cotton planting area generally reduced, making China's cotton production from 7 million 990 thousand tons in 2008/2009 to 6 million 760 thousand tons, domestic cotton supply is seriously insufficient.

Global cotton production has also seen a significant reduction. In addition to China's disaster affected cotton production, the world's fourth largest cotton producer Pakistan has also suffered serious floods, resulting in 30% of its crop acreage affected and cotton production sharply reduced.

US cotton stocks also hit a new low since 1996 in 2010.

International cotton supply has shown a tight situation.

In addition, in recent years, the cost of cotton planting has increased, and some market funds have been sought after. Xinjiang cotton, which occupies the country's cotton output of 1/3, is difficult to pport due to pportation of important materials such as coal, oil, natural gas and other factors. It is also an important factor leading to the continuous rise of cotton market prices.

In the context of tight supply and demand side, cotton market outlook will continue to rise.

The pressure of future industry development is still large.

Since the beginning of this year, the cost of raw materials such as cotton has gone up too fast, which is the outstanding pressure faced by China's textile enterprises.

Although cotton prices continue to rise and downstream demand is strong, the price of cotton yarn in China has increased considerably compared with the previous year. According to the relevant market data, by the middle of September, the price of 32S yarn has increased by 45% compared with the same period last year, and the 40S yarn price has increased by 41% over the same period last year.

But the price of grey cloth in the middle reaches is less than 10%.

According to the National Bureau of statistics, by July, the factory price of terminal clothing products increased by only about 2% compared to the same period last year, while the retail price of clothing decreased by about 1% compared with the same period last year.

It can be seen that the price of raw materials is rising too fast, and the cost pressure is very difficult to pmit to the terminal consumption of industrial chain, which makes the cost digestion problem of textile enterprises increasingly prominent.

With the high price of cotton and even rising, the pressure of textile enterprises will continue to increase.