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Cotton Bull Market Squeezing China'S Textile Export Profits

2010/10/1 9:29:00 95

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Whether at home or abroad,

Cotton price

All of them are in a bull market which is difficult to withstand the rally. In the production season of "golden nine silver ten", we will let

Spin

Products export enterprises are having a headache.

By the end of the last trading day before the Mid Autumn Festival, the average contract price of cotton futures and electronic matching in Zhengzhou and the average price of throwing and storing in the domestic market in New York were up to 20000 yuan / ton, a record high. China's cotton price index rose from 19228 to 15 yuan. In the international market, cotton futures and CotlookA index, which reflected the spot price level of the international cotton market, all hit a new high of nearly 15 years, up 9.6% and 25.8% respectively from the end of 8.

"At present, the price of agricultural products in the global market is basically at a historical high level, and the high cotton price is also a normal phenomenon.

textile industry

The era of high cotton prices has arrived.

"Wang Qian, editor in chief of China's first textile network, said so to our reporter.

Facing the craziness of cotton price, the most difficult to bear is the downstream textile enterprises.

This year, quite a few textile enterprises have reflected that because of the tight supply of cotton, their downstream products, such as cotton yarn and other textile materials, have also become scarce resources, and even the situation that money can not be bought. This situation is still continuing.

A textile in Nanjing, Jiangsu

Exit

Mr. Wang, vice president of enterprises, told reporters that as cotton prices rose, the price of cotton yarn was almost "one day, one price", and the sales situation was unusually hot. "Now it is generally a full cash pick up, or even a delivery, which is likely to last until the end of the year".

Mr. Wang further said that as the price of raw materials continues to rise, the cost pressures of downstream garment enterprises are also rising. "Cotton mills are constantly raising prices, but clothing export is very difficult to raise prices, even if it is mentioned, it is far behind the cost increase."

Wang pointed out that since the beginning of this year, as cotton prices have climbed steadily, the profits of fabric manufacturers such as cotton yarn in the middle reaches are almost the highest level in history. "At least the pfer from upstream to middle reaches smoothly." for the clothing and other products of the terminal, the overall price increase of the industry has begun, but the export price is still more difficult, so export profits are being squeezed.

Entering the "golden nine silver ten" production season, the new cotton in China has also been listed. Will this make the "high temperature" of cotton market subsided? A number of domestic agencies have analyzed and predicted that the quality and output of the new cotton are not optimistic due to the climatic anomalies of many cotton producing areas in China. The listing is hard to suppress the bull market at present, and the rally is likely to continue until next year.

For the international market, the Financial Times reported that the rise of cotton prices has gone beyond the rise of industrial commodities such as crude oil and copper.

Reported that the world's largest cotton producer and importer - China's cotton harvest this year has been threatened by rainwater; the second largest cotton growing country in India, because of the export ban imposed by the government this year, has kept traders speculating on the future policy trend; and the fourth major cotton growers in Pakistan, the world's major floods and the sharp decline in production, has intensified the tension of global cotton supply.

The US Department of Agriculture estimates that the ratio of global cotton consumption to consumption has dropped to its lowest level in 15 years.

In view of this, the China Cotton Association has to issue "double high" industry warning to remind all parties in the industry: high cotton price means high risk, and cotton price is too high and too fast to rise, which is not conducive to industrial stability and healthy development.

Textile enterprises should pay close attention to domestic and foreign cotton production and textile situation changes, calm analysis, rational response, guard against business risks, do not follow the trend of speculation.