Can The Textile Industry Sustain Such A High Price?

Supply and demand of cotton

Tension does exist.

However, compared to last October's 3 yuan / Jin, the average price of seed cotton was 5 yuan in early October this year, and it has risen nearly 60%.

The lint price in October 2009 ranged from 13000 to 14000 yuan / ton, and the lint price is now in the range of 22000 yuan / ton or 60 to 70% depending on the market condition. The price of C32s yarn in Shengze market is 18400 yuan / ton in October last year. The price of 32 yarn in Shengze market is 29800 yuan / ton in October 31st this year, and the price has increased by 60%.

That is to say, in October and October of last year, prices of cotton and yarn rose by 60%.

Textile profit

However, at present, according to Mr Ren Feng, director of the foreign trade department of the Ministry of Commerce recently, the average profit of the domestic textile industry is between 3% and 5%.

Small profits have to bear the multiple impact of wage increases, the rise of the RMB exchange rate and the uncertainty of economic recovery in Europe and the United States.

Coupled with the recent surge in cotton prices, whether the textile industry can withstand such a high price is worth considering.

National Day

Is the price of cotton buffering higher or lower?

People's mentality is different, and there are two totally different market behaviors in local market.

The price of cotton market has reached a peak, and the trend of the latter will be high.

And seed cotton prices will not increase again.