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    Cotton Prices Soaring: National Multi Sector Or Joint Launch Regulation

    2010/9/27 11:14:00 48

    Regulate Cotton Prices

    On the 25 day, China's cotton price index (CC Index328) exceeded 20 thousand yuan / ton mark, reaching 20236 yuan / ton, refreshing the highest record in 10 years.

    The soaring cotton prices have been greatly reduced.

    Cotton textile enterprises

    Profit margins.


    Reporters learned that the national development and Reform Commission will jointly finance ministry, the Ministry of agriculture, the General Administration of industry and Commerce and other seven ministries and commissions will hold a nationwide teleconference on cotton work next Monday (September 27th) to analyze the current cotton production and marketing situation and deploy the 2010 cotton work.


    Multiple factors lead to

    Cotton price

    Rise sharply


    "This is the highest cotton price in more than 10 years since 1999 when the price of cotton was liberalized.

    Cotton has risen several hundred yuan a day in recent days. "

    A staff member of China Cotton Association told the Chengdu Commercial Daily reporter.

    She said that due to the impact of the international financial crisis in 2008, the low cotton prices affected the cotton growers' enthusiasm for planting cotton, and the cotton planting area in the whole country decreased significantly.

    After the financial crisis, the demand for cotton increased sharply, and there was a gap between cotton production and demand, which contributed to the rise of cotton prices.


    According to the National Bureau of statistics, the whole country in 2008

    cotton

    The sown area was 86 million 400 thousand mu, a decrease of 2 million 400 thousand mu compared with that of the previous year, and the output of cotton was 7 million 500 thousand tons, a decrease of 120 thousand tons compared with that of the previous year.


    As for the reasons for soaring cotton prices, Xu Wenying, vice president of China Textile Industry Association and President of China Cotton Textile Industry Association, said recently that the surge in foreign orders this year stimulated textile enterprises' demand for cotton, while domestic cotton production was decreasing, which led to a rise in cotton prices on a large scale.


    "Weather induced cotton production is also an important factor in soaring cotton prices."

    A cotton analyst said that during the cotton pollination period, the rainy weather in Hebei, Hubei, Anhui, Shandong and other places also seriously affected the quality and quantity of cotton peaches.

    Over the past 3 months, many provinces in southern China have suffered huge floods.

    A market report predicts that the flood will lead to a reduction in cotton production in China by 5%~10%.


    An insider who asked not to be named told the Chengdu Business Daily that cotton speculation was also an important reason for the rise in cotton prices.


    "The recent increase in cotton prices is much faster than that in cotton yarns.

    This has greatly reduced our profit margins. "

    Mr. Ho, head of the supply and marketing department of a large cotton textile enterprise in Sichuan, told reporters in an interview with Chengdu business daily, "in my opinion, the possibility of further rise in cotton prices is still great, but the space for cotton yarn to rise is not large.

    Our company's cotton consumption ranks the top three in Sichuan Province, and the sharp rise in cotton prices has caused great pressure on us.


    Mr. Ho said that because of the large amount of capital needed to purchase cotton and the profit margins of cotton yarn becoming smaller and smaller, some small textile enterprises were forced to turn to the field of chemical fiber and textile.


    The state continued to sell cotton reserves.


    China's cotton reserve management company said on the 25 day that it was planning to sell 20063.4 tons of reserve cotton on the same day, involving 12 warehouses in 7 provinces, which is the thirty-third time since August 10th that the reserve cotton has been selling cotton reserves.


    Statistics show that between August 10th and September 21, the total amount of cotton reserves sold in the Central Cotton store was 520 thousand and 116 tons, accounting for 86.69% of the 600 thousand tons of the national cotton reserves. If the 2 tons sold on the 25 day were sold, the reserve cotton has already sold over 540 thousand tons of reserve cotton.


    Reporters learned that the national development and Reform Commission will jointly hold the seven departments of the Ministry of finance, the Ministry of agriculture and the General Administration of industry and commerce, and hold a national teleconference on cotton work next Monday (September 27th) to analyze the current cotton production and marketing situation and deploy the 2010 cotton work.


    A senior member of the cotton industry for many years said that according to his judgment, the main topic of the conference is to ensure the needs of cotton in the textile industry, safeguard the interests of the vast majority of cotton farmers, and combat malicious speculation of cotton.

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    Rising Prices Of Raw Materials, Shoes Or Clothing Industry Or Expedited The "Foundry Army"

    On September 27th, the surging cotton price surging in China is hitting the textile and garment industry in Quanzhou. The cost pressure has recently been pmitted to the terminal of the industrial chain.

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