Cotton Market Goes All The Way, Can The Textile Industry Bear It?

Although 10/11 year cotton Tension in supply and demand 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. near 60%. The lint price in October 2009 is between 13000-14000 yuan / ton, and the lint price will also be increased by 22000 yuan / ton in the light of market conditions. 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 is also up 60%. That is to say, in October and October of last year, prices of cotton and yarn rose by 60%. But this year's textile profit rise has not reached this value, according to the foreign trade department of the Ministry of Commerce. Official Mr. Ren Feng recently showed that the average profit of the domestic textile industry is between 3%-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.

This year, cotton prices have gone up all the way, reaching a peak before the National Day holiday. But after a national day's buffering, cotton prices have gone up all the way, or the bull's head has been lowered. 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.