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    Cotton Prices Continue To Rise &Nbsp; Some Of Shandong'S Textile Enterprises Prefer To Stop Production And Not Purchase Cotton.

    2010/9/29 15:07:00 66

    Cotton Price Spun Cotton

     

    Soaring

    Cotton price

    Textile enterprises have already felt the pressure of rising costs.


    Reporters learned that the current "China"

    Home textiles

    There are hundreds of small and medium-sized textile enterprises in Gaomi City, hundreds of small and medium-sized textile enterprises, hundreds of enterprises due to the rise in cotton prices led to rising costs, enter the production or downtime.


    At the same time, enterprises can only rely on their own digestion of the rise in costs.

    A middle level Limited by Share Ltd of Fu Tian Group said that the risks brought by the rising cotton prices will eventually be released in the downstream of the cotton industry chain, and the textile industry will usher in a round of "strengthening the weak and staying strong".


    Ning stops production but not supplies.


    Get into

    Spin

    Dan Baocheng, vice president of the Gaomi City Textile Industry Association for nearly ten years, described the rise in cotton prices since September with "runaway wild horses".


    On the 27 th of this month, the cotton price B index (grade 328), representing the domestic cotton price level, reached 22032 yuan / ton, the highest in 10 years.

    In the futures market, Zheng cotton rose to a record high of 22 thousand yuan / ton on the 27 day after breaking through 18 thousand yuan / ton in early September, rising 20% in January.


    Dan Baocheng told reporters 27 days ago that many small textile enterprises now prefer not to produce or buy goods. "The price is high and the risk is great," he said.


     

    Gaomi City

    Small and medium-sized enterprise bureau relevant person in charge told reporters 28 days, at present, nearly 1000 small and medium-sized textile enterprises in Gaomi City, hundreds of enterprises because of cotton prices soaring, RMB appreciation and other adverse factors, is in a state of production or downtime.


    "Let alone the small and medium-sized enterprises, that is, if large textile enterprises purchase goods according to the current cotton prices, there is no profit whatsoever."

    The head of Limited by Share Ltd Import Department of Fu Shi group said.

    Fu Shi home textile is currently used for pre storage.

    "We expect cotton prices to rise by 1000 yuan / tonne over the same period, and now it has risen by more than 5000 yuan / ton.

    Such a price, which enterprise dare to take orders? "{page_break}


    Worries about foreign trade


    Dan Baocheng also said that some foreign businessmen even asked the domestic textile enterprises to use imported cotton, the reason is that there are some problems in the quality of domestic cotton.

    "Therefore, enterprises will lose their pricing power on two aspects of cost and product."


    Dan Bao Cheng said that enterprises should pfer the cost of rising cotton prices to products, but because of the dependence on foreign markets, once the price is raised, orders may flow to India, Pakistan and Vietnam. Therefore, domestic enterprises can only reduce their costs by compressing their own profits.


    It is reported that in this round of cotton price rising process, some speculative funds have been stockpiling goods in the spot market or in the two markets of China and the United States, which have a certain impact on the market by placing orders through stock orders.

    At the same time, there is no shortage of foreign enterprises behind the domestic cotton price speculation.

    It is understood that at present, many large foreign cotton traders such as Louis Da Fu have obtained the license to participate in the acquisition, processing and operation of cotton in China.


    Nowadays, the most worrying problem for textile enterprises is how long will the irrational price of cotton continue?

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