Speculation And Other Factors Caused Cotton Prices To Continue Soaring &Nbsp, Squeezing The Textile And Garment Industry.

In the near future,

Li Xuerong, a senior researcher at CIC, believes that cotton prices have been rising since last year, and the main reason is the imbalance between supply and demand.

Judging from the domestic market, cotton prices in 2008 were depressed, resulting in a lot of cotton farmers going out to work for a living, and cotton planting was greatly reduced. And cotton production in Xinjiang and other main cotton producing areas reduced cotton production and supply, which aggravated the imbalance between supply and demand of cotton.

In addition, market speculation is also one of the factors to boost cotton prices.

In the case of shortage of cotton supply, some cotton merchants with strong financial strength and experience began to hoard cotton, cotton and cotton fry. Under this impetus, a large number of large enterprises in cotton textile enterprises began to hoard cotton, and the textile industry is a large number of manufacturers, but most of them are small in scale and weak in strength. Therefore, cotton began to accumulate in cotton merchants and a few large enterprises. When resources are accumulated in the hands of a few people, it is easy to cause price inflation.

The continuing contradiction between supply and demand makes the current cotton price increase appear large and lasting for a long time. However, judging from the current situation, cotton price has not yet reached its peak, which will bring heavy burden to the textile and garment industry, and the textile and garment industry is facing a major reshuffle.

On the one hand, along with the continuous rise of cotton prices, the process of panic buying and hoarding of large enterprises is also a process. The success of hoarding directly determines the production status of enterprises.

On the other hand, the profit margins of the industry have been greatly reduced.

Zhang Yanlin, research director of CIC, pointed out that the sharp rise in cotton prices has greatly reduced the profit margins of the textile and garment industry, but has brought some benefits to some cotton yarn enterprises. The discourse power of the fabric enterprises and cotton yarn enterprises is totally upside down.

The soaring price of raw materials and cotton has led to a sharp rise in the price of cotton yarn, and the price of chemical fiber has also risen, which has brought great pressure to the fabric enterprises. It should be said that the rise in cotton prices has brought heavy burden to the majority of enterprises in the textile production chain.

The investment analysis and prospect forecast report of the 2010-2015 China cotton textile industry released by CIC shows that cotton prices have bottomed out since last September, and the standard cotton has jumped from 17000 yuan / ton to 9000 yuan / ton at that time, and now it has climbed to 20000 yuan / ton.

The price of cotton yarn has also risen sharply. The price of combed 32 cotton yarn is currently 25200 yuan / ton, up 33% from the level of 18900 yuan / ton in October last year.