Cotton Prices Soar: Spinning Enterprises For Fear Of Involvement In &Nbsp; Competing To Wait And See

Skyrocketing

Recently, cotton prices have gone up all the way, breaking through 20000 yuan per ton, and refreshing the cotton price record for 10 years.

Such speed and high price are rare in the cotton market.

According to Luo Limin, deputy general manager of Henan Textile Industrial Corporation, they are no longer accepting new orders. What they need to do now is to use the original stock materials to execute the signed orders.

The soaring cotton price has pformed the textile industry into a big gamble. Few enterprises are willing to take part in it because they may fall into it accidentally and never get up again.

The rise of paradox

In September 20th, Wang Wei, deputy director of the Department of consumer industry of the Ministry of industry and information technology, said that cotton prices rose rapidly from 17000 yuan / ton to 20000 yuan / ton, and the 20% rise in just four days, unprecedented speed.

In September 26th, the rise in cotton prices remained unchanged.

According to Sun Xutian, chairman of Shangqiu Zhongtian Textile Group, the cotton in the spot market has reached 26000~27000 yuan / ton, and the spot price of 28000 yuan / ton has even appeared in Gaoyou and other places in Jiangsu.

On that day, China's cotton price index exceeded 20000 yuan / ton mark, reaching 20236 yuan / ton, refreshing the highest level in 10 years.

For such a "very" surge, Wei Yong, Deputy Secretary General of the Henan Cotton Association, believes that the cotton planting area of the whole country has dropped sharply this year, and the low temperature and rainy weather in the main producing area has also resulted in a significant reduction in cotton production.

Because of the weather problem, this will further pressurize cotton supply.

Zhang Xiaoqiang, deputy director of the national development and Reform Commission, said that after the economic recovery, the demand for cotton exports from the international economic rebound continued to grow, which resulted in the current supply and demand gap and the pressure of supply and demand.

Suspicion of hot money

The industry believes that the cotton prices skyrocketing and garlic, mung bean, ginger and other soaring prices are too similar, the addition of hot money and the sudden price attacks are not related.

Before soaring cotton prices, the state began selling nearly 600 thousand tons of reserve cotton in August 10th to stabilize market prices, but with little success.

In sun's field, cotton is indispensable for life.

In May this year, the cotton industry summit forum, Du Yuzhou, vice president of the China Textile Industry Association and the former Ministry of textile industry, pointed out that some knitting factories have to consider building their own mills. The limited funds of enterprises are not used for upgrading the industrial chain, but for the speculation of cotton and cotton yarn. This is a waste.

Related to this is, an industry warning issued by China Cotton Association recently mentioned that "large and medium enterprises are quite stocking at present, and some large textile enterprises have 6 months of cotton consumption."

This contrasts sharply with the amount of cotton used by large and medium-sized enterprises that only lasted about a month in the beginning of 2008.

Restlessness or persistence

At present, textile enterprises are in a wait-and-see state. No one dared to act reckless in the face of cotton prices rising several hundred yuan a day.

Wei Yong told reporters that at present, Henan's market 75%~80%'s textile cotton is Xinjiang cotton.

But in the face of today's soaring prices, Xinjiang cotton farmers are reluctant to sell their spirits seriously. A large number of enterprises can not buy cotton and can not guarantee production.

This also aggravates the gap between supply and demand, which makes cotton prices more expensive.

The rise of cotton prices has led to the rise of cotton yarn and the rise of other yarns.

According to Luo Limin, the price of cotton and cotton yarn has been rising, resulting in a great increase in the price of polyester, one of its substitutes.

As a result, the entire textile industry will face a new round of rising prices of raw materials, and the pmission of prices will also lead to the overall rise in prices of downstream garment enterprises.

It is reported that because of the soaring price of cotton and cotton yarn, the grey cloth and gauze on the internet no longer offer quotations, and the quotation of grey cloth and gauze has always been stable before the cotton boom in September 20th.

This abnormal surge has attracted the attention of the state, and the new round of regulation and control measures will increase.

To this end, in September 27th, the Central Committee held a teleconference on cotton work.

But in this solution from the ministries of the Central Committee, it is easy to see a similar language of capacity control in the steel industry.

For example: do a good job in the small package of cotton enterprises exit plan, actively guide, grasp the small limit.

We should give full play to the role of large cotton enterprises and optimize the layout of cotton processing industry.

The industry is not optimistic about whether the national regulation can bring the expected results.

Because of the time before the fried garlic, fried ginger time, the state's regulation has not been able to effectively control the trend of rising prices.

The absence of supervision behind the boom is to blame.

Cotton prices have soared every day, and the rise of several hundred yuan a day is amazing.

This can not help reminiscent of the hot "fried" garlic and ginger, which are different now.

Behind every crazy price increase, there is a problem of imbalance between supply and demand, but the reasons for the imbalance between supply and demand are different.

Some are due to the weather, some because of geography, but the most fatal factor is human factors.

In fact, in the face of the current trend of cotton demand and the lowest cotton planting area over the years, the tension of supply and demand seems to have troubled domestic cotton spinning enterprises since March of this year.

As in the past, the speculative factor in the market has once again become the prime culprit of price inflation in the boom of cotton prices and has aroused suspicion in the industry.

And suspicion is not without reason. Speculation and speculation in hot money is a rigid demand for people to live in food and clothing.

In this case, speculation will not bring any losses, but it means that more or less money is made, because for these necessities of life, price increases will only make people less, but they will not buy.

In May of this year, Du Yuzhou, President of the China Textile Industry Association, pointed out that some cotton spinning enterprises had no intention to use limited funds for technological pformation, but rather used to hoarding raw materials and seeking violence.

In fact, most large cotton spinning enterprises have completed the withdrawal of real estate funds and entered the cotton market before May.

As far as the current cotton price inflation is concerned, the absence of regulation is still to blame.

Especially after Du Yu Zhou's warning speech was reported, there is still no obvious behavior and monitoring at the regulatory level. This indulgent speculation has directly indulged cotton prices and cotton textile enterprises' irrational irrationality in the first half of the year.

In addition, at present, China's market economy industry organization is not fully under the circumstances. It is hoped that the industry organizations' warnings and norms will achieve the automatic balance of the market and still have the suspicion of seeking money, so this cotton price has skyrocketed. I hope this is a warning, because there is still time to improve for the regulators.