Cotton Boom Zhejiang Cotton Spinning Enterprises Encounter Cost Crisis

　　 In October 22nd, a family cotton Tang Guirong, the boss of the acquisition point, sat on the pile of cotton. He is now from door to door to the local community. Cotton grower Buy cotton at a high price, but fear that cotton will suddenly collapse and lose everything.

Since May 2010, domestic cotton prices have been rising steadily. New cotton After the opening of the scale, cotton prices soared at an alarming rate. Since September 2010, within 40 days, domestic cotton futures prices have surged by more than 6000 yuan per ton, and spot and futures prices have broken through the historical extreme value of 25000 yuan per ton.

Cotton prices continue to soar, coupled with the accelerated pace of RMB appreciation, is gradually eroding the profit margins of Zhejiang textile enterprises. At present, some small and medium-sized cotton enterprises in Zhejiang have been afraid to take orders and fall into a wait-and-see state. Zhejiang cotton spinning enterprises are facing a cost crisis.

In October 22nd, a female worker worked in a towel factory in Zhejiang. The towel factory, which is specially designed for supermarkets, is now in full deficit. Since May 2010, domestic cotton prices have begun to rise steadily. Cotton prices have surged at an alarming rate after the new cotton scale. Since September 2010, within 40 days, domestic cotton futures prices have surged by more than 6000 yuan per ton, and spot and futures prices have broken through the historical extreme value of 25000 yuan per ton. Cotton prices continue to soar, coupled with the accelerated pace of RMB appreciation, is gradually eroding the profit margins of Zhejiang textile enterprises. At present, some small and medium-sized cotton enterprises in Zhejiang have been afraid to take orders and fall into a wait-and-see state. Zhejiang cotton spinning enterprises are facing a cost crisis.

In October 22nd, Hu Yintang, director of a towel factory in Lanxi, Zhejiang, said at the factory's loom: "we have stopped buying high priced cotton in the market now, and the production is last year's inventory (cotton), which can last for two months at most." Due to tight funds, 30% of the looms in his factory have been shut down and plunged into losses across the board.

In October 22nd, a worker was walking through a workshop which produced denim in Zhejiang. The cotton yarn inventory of the company will be used up in November, and the company will not dare to take longer orders.