Cotton Prices Rose 4 In Two Months To Break Through A Record High Of &Nbsp; Faced With A Price Free Market Situation.

　　 In October 28, 2010 CCTV's "economic half-hour" reported that this year's New cotton In less than two months, the price rose nearly 40%. On the other hand, because of the rising price of cotton raw materials, the lint and cotton yarn produced have to rise, but almost no one in the downstream businesses dare to accept the offer. At present, cotton is facing a situation of price and no market. The following is a program record:

　　 After garlic, ginger and vegetables, another important agricultural product has now taken the baton of price increase. cotton 。 After the launch of new cotton in late August, in less than two months, the cotton price index rose from 18000 yuan to 25300 tons per ton, or nearly 40%, almost 100 million yuan a day. Why are cotton prices on the helicopter this year? Can the cotton market sustain such a surge? Let's go to Xinjiang, the main cotton producing area.

Reporter: This is the 314 National Road in the western suburb of Akesu, Xinjiang. Ginning yard The more than 30 family, on average, has one every one or two kilometers. It is one of the main battlefields of cotton purchase in Akesu. At this time of year, local cotton growers will come from all directions, hoping that their hard work will be able to get a good price here.

Cotton grower A: happy, the farmer is happy, now it's 12 yuan.

Reporter: what price do you sell?

Cotton farmer B: 10 yuan, 11 yuan.

Reporter: how much did you sell at the top?

Cotton farmer B: the maximum is 12 yuan.

Reporter: 12 yuan, are you satisfied with the price this year?

Cotton grower B: we are satisfied with the price this year.

Because of the high concentration of cotton business here, Akesu has become the hub for the sale of cotton in southern Xinjiang. The price here has also become the weathervane of Xinjiang's cotton purchase price. In September, the price of cotton in Akesu increased from 8.5 yuan per kilogram to more than 12 yuan in less than a month, up nearly 40%.

Reporter: you are talking about the price, right?

Shandong buyer: right.

Reporter: How did you discuss it?

Shandong takeover: OK.

Reporter: how many deals?

Shandong buyer: more than 12 points.

Interviewer: how much is 12?

Shandong buyer: 12.2 yuan.

After several bargaining, Bibi's deal was concluded here. In an interview, reporters found that in the acquisition area not only a large number of cotton processing enterprises were gathered, but also many buyers from Shandong and Zhejiang. Because of the high quality of cotton in Xinjiang, many cotton textile enterprises in the field are directly in Xinjiang to buy cotton. On the day we interviewed, the price of cotton at this acquisition point has reached a new high.

Tianshan cotton surveyor Minerva M: today we received an average of 40 linen, 12.2 yuan, an average of 12.2 clothes, a dress score plus 20 Fen.

Reporter: what's the best price?

Minerva M: 12.6 yuan. A kind of

Reporter: is it up?

Minerva M: every day goes up, and seed cotton rises. The highest price yesterday was 12.4 yuan, up 2 fur today.

In order to find out the reasons for the rise in cotton prices, we decided to go to Sha Ya county, the largest cotton producing county in Akesu. On the Atta road leading to the county of Sha ya, we saw a tractor laden with cotton and a large truck running along the river. Along the way, some people were picking up the cotton scattered on both sides of the highway after passing the cotton cart.

Reporter: where did you come from?

Pick up flowers: 53 kilometers away. A kind of

Reporter: how much can I pick up every day?

Pick up flowers: pick up three or four hours a day, more than ten kilograms. There are many people next to it.

According to the current market price, this fellow can spend more than 100 hours a day on the road without any cost. He spends three or four hours a day.

Interviewer: are there many cotton picking people like you?

Flowers pick up: many.

Reporter: they are all?

Pick up flowers: they are all near the coking plant. A kind of

Reporter: we can also pick up money on this road now.

Pick up flowers: that is, wherever people are hardworking, they can earn money.

At six o'clock in the evening, we came to the village of gal bagg in Sha Ya county, Akesu, and we met Li Zhongping, a villager in the village of Ku Mu Tuo village. Because of the shortage of flower workers and the rise in labor prices this year, when we saw him, he was picking cotton with the flower picking workers. When we asked about the cotton prices this year, Li Zhongping could hardly conceal his joy.

Li Zhongping, Gal bagg Township, Sha Ya county, Akesu, the Xinjiang Uygur Autonomous Region: this year's price is up to a few cents.

Reporter: a price per day?

Li Zhongping: one price per day.

Interviewer: how much can you get every day?

Li Zhongping: 2 wool and 3 hair. Sometimes it raises 1 yuan a day. This is the first time this year.

Li Zhongping told us that this year's cotton prices and the rise in his nearly 30 years of cotton seed experience has never met. The price of 12 yuan per kilogram has surpassed the historical peak of 10 yuan per kilogram in 2003, double the number of last year. Li Zhongping said that in the past few years, cotton prices have been maintained at a low level.

Li Zhongping: it's 4 yuan, 5.3 yuan, 5.8 yuan, 4.8 yuan. In those years, I sometimes lost tens of thousands.

This year, Li Zhongping planted 250 mu of cotton, before preparing to sell the first car cotton, Li Zhong warring and trembling everywhere to explore the new cotton market.

Li Zhongping: I ran to the cotton mill and asked him to go. I ran to him to ask him. He didn't say a few words. It was about 8 yuan. I went to the development area and there was a factory there. The newly opened factory was also run by the factory just last year. I asked about 9.5 yuan and thought that the cotton was sky high.

After running several places, the cotton price given by the acquisition company is higher than the one time, which makes Li Zhongping overjoyed. On the second day, he took his first cotton to the purchasing station this year. But what he could not imagine was that the price of the first car was much higher than that of the 9.5 yuan per kilogram he said.

Li Zhongping: to sell 10.4 cars in that place, that is the first car. One car is higher than one car.

Since the launch of new cotton, Li Zhongping has sold 5 cotton and the price has risen from 10.4 yuan per kilogram to fifth yuan per vehicle, 12.3 yuan per kilogram.

At nine in the evening, 26 flower pickers hired by Li Zhongping picked more than 1800 kilograms of cotton on that day. On the morning of the second day, Li Zhongping came to the cotton acquisition station early and was ready to sell the sixth car cotton this year.

Interviewer: how much cotton do you bring today?

Li Zhongping: there's more than 5 tons.

Reporter: 5 tons, what's the price today?

Li Zhongping: for the time being, I don't know yet. It may be between 11.8 and 12 yuan.

After cutting and testing, Li Zhongping's cotton grade was set to two, and today's purchase price is 12 yuan per kilogram.

Reporter: 12 yuan, are you satisfied with this price?

Li Zhongping: that's for sure. 12 yuan can no longer do, you say.

After a busy day, Li Zhongping got the money of sixth cars and cotton this year.

Reporter: how much money did you get today?

Li Zhongping: 63852.

Li Zhongping has calculated an account for us, excluding the cost of farming, labor and so on. His income is at least 400 thousand this year, double the number of last year. But Li Zhongping also told us that because he used water-saving drip irrigation during the planting process and was not affected by the weather, the cotton growers like him who increased production and increased income were in the minority this year.

Dai Lu, director of Akesu Agricultural Bureau Technology Extension Center: now the whole area of drip irrigation accounts for only 1/4 of the total cotton area. This year's overall weather is not too favorable for cotton growth. The total yield per unit area is slightly lower than that of last year.

Reporter: what is the output this year?

Cotton farmers: there is a slight reduction in production.

Reporter: what is the reduction in production?

Cotton grower: now there may be 100 kilograms (per mu).

Cotton growers: definitely cut production. This year, all large areas, this year. Last year, it looks like 400 kilograms. It seems to be around 300 kilograms this year.

Cotton farmers: the price is OK. If it is not for the price, it will lose money this year.

In the cotton purchase area of Akesu, we met with the purchasers from Dezhou, Shandong. They told us that the cotton area in Shandong has also been greatly affected this year.

Shandong takeover: a reduction of more than 100 kilograms.

Reporter: cut production by half. Is this the case in Shandong?

Shandong buyer: under the rain this year, there is such a deep pool of water in the ground.

Buyer: General rain.

Reporter: what about Shandong's acquisition?

From April to September this year, precipitation and cooling weather frequently occurred, which caused about 25000000 acres of cotton in Xinjiang not to be affected by the same degree, and pushed back the overall maturity of cotton this year.

Dai Lu, director of Akesu Agricultural Bureau Technology Extension Center: on average, it may take about 15 to 20 days. The delay of individual plots may be about 1 months.

Dai Lu told us that because of the fact that cotton has not been picked up yet, the number of production cuts can not be fully counted. However, the reduction in production and the postponed period of maturity lead to a low level of panic in cotton production this year, as well as an increase in the cost of agricultural materials and labor. This is also one of the important reasons for the soaring cotton prices this year.

Reporter: I am now a cotton purchasing and processing enterprise in Akesu. The 9-10 month of every year is the peak season for the acquisition of new cotton. The site behind me is the place where the enterprise used to store seed cotton. According to my visual inspection, every cotton pile is 2 meters high, but the person in charge here told me that in the same period last year, 36 cotton pits were twice as high as they are now.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd.: at this time of the year, we may be 7 or 8 kiloton. Now it is 3 or 4 kiloton.

Now it should be the peak season for cotton sales, but due to the influence of the weather, the cotton production in Akesu area has been reduced this year and the picking period has been postponed for 20 days. Cotton growers who sell cotton at the cotton processing plant look at the price of a day's purchase and many of them have the mentality of hoarding and selling.

Reporter: how much is the price?

Cotton farmers: 11.5 yuan.

Interviewer: do you think you are not satisfied with the price?

Cotton growers: not satisfied.

Reporter: so you think you want to sell?

Cotton growers: 11.8 yuan, satisfied.

Uygur cotton grower: I didn't sell it. I'm at home now.

Reporter: I want to sell for a higher price.

Uighur cotton farmers: a higher price.

Reporter: how much cotton is not sold now?

Uygur cotton farmers: more than one ton. After 13 yuan, I think 13 of the increase.

The cotton farmers' selling mentality, coupled with the cotton market that had been cut down, made cotton supply even more intense.

Tengyok Lang, deputy general manager of Hongli cotton industry: compared with the same period last year, this year's purchase volume is only 20% that of last year.

Reporter: not so few? Only 20%?

Tengyonlang: Yes, I have only received it by now, that is to say, a little more than 2000, 2, 3 kiloton of seed cotton. In the past years, I have been full of stacked areas, and the height is nearly 4 meters.

Tianshan cotton industry director Fang Ping: less than half of the same period. The price is mainly high.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd.: from September 15th to the present, the price has gone up a bit, it is outrageous.

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Faced with cotton prices like roller coaster, many cotton processing enterprises have obviously felt the pressure of funds. Wang Bole told reporters that at present, their enterprises have been caught in the dilemma of collecting and not collecting.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd.: it is very anxious every day to receive cotton every day. If you don't accept it now, the high-grade cotton will not be available any more. We must seize the resources. The cost is so high. But we, as a textile enterprise, will also produce the cotton reserves in the whole year until December, so we are now very passive in carrying out this price.

Cotton is purchased and processed through a series of processes such as seed removal and so on. It is made into cotton lint without impurities and can be directly spun into yarn.

Because of the rising price of raw cotton materials, the production cost of lint has also doubled, reaching 25500 yuan per ton. Wang Bole told reporters that as the downstream enterprises could not accept the price rise of cotton yarn for a time, if he sold the cotton yarn at a price of 35 thousand yuan per ton, his factory would lose 500 to 1000 yuan for producing 1 tons of cotton yarn every time.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd., Mr. Wang Bole: production electricity, artificial wages, locomotive accessories, which is a cost of 4500, and 4500 plus the loss of raw cotton, it is 2500, that is 71007100 plus 1000 yuan of freight is 81008100, plus our tax, plus financial interest plus the overall depreciation of equipment assets more than 2 thousand, so that it is already a loss.

At present, many manufacturers are facing this situation, and some cotton spinning enterprises even lose more seriously. The head of the Hongli County Hongli Cotton Industry Co., Ltd. tells us that at present, they produce a loss of 2000 to 3000 yuan per 1 tons of cotton yarn. In the workshop of the enterprise, we found that half of the spinning machines were empty.

Hongli, deputy general manager of Hongli cotton industry, tengyunlang: because my purchase amount is not enough, I can't eat enough machines. I only accept dozens of tons a day, but we can eat the machine. If we can open all two classes a day, I can approach 300 tons.

Tengye Lang also told reporters that because of the rising price of cotton raw materials, resulting in the production of lint and cotton yarn also had to rise, but almost no one downstream enterprises dare to accept the plate, at present, cotton is facing a situation of no market price.

Tengylang: this year, I have not received a list to negotiate with us about lint.

Reporter: what happened at this time in previous years?

Tengylang: in previous years, I contracted out at this time in the past year, nearly 30% of the total output.

Wang Bole: our buyers are not so active. The downstream customers are not so active. He means or I push them for a week.

Reporters in the survey learned that in the face of this year's record breaking cotton prices, many cotton processing enterprises are cautious and wait-and-see attitude. Whether to accept or not to accept is the plight faced by many enterprises. However, during the visit, the reporters also found that some cotton purchasers were very aggressive in buying cotton in large quantities. At four o'clock p.m., the door of the cotton acquisition point was empty, but a new cotton car was waiting for testing and loading and unloading at Xinyuan cotton Co., which was separated from more than ten kilometers away.

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: we charge a large quantity.

Reporter: why do we need to receive large quantities?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: because good cotton only has this period of time, after that, there will be no good cotton.

So we collected a lot.

Reporter: how much is it?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: how much is it?

Interviewer: how much did you accept today?

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: more than 200 tons today.

The cotton growers at the gate told us that the purchase price of cotton here is 3 to 5 cents higher than anywhere else, so many cotton farmers are willing to pull the cotton here.

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: our cost so far is generally higher than the market, we are not high.

Reporter: why?

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: we have received much earlier, but it is cheaper in the early stage. 10 yuan, we also have 800, 900 tons, 11 yuan, we have collected more than 1000 tons, so that we are better than others on average.

In Zhang Yuesheng's view, the trend of cotton prices in the future will continue to rise.

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: I see that the market price is going up.

Reporter: never fall?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: absolutely will not fall. Because there is a lot of demand, this year's cotton is somewhat less than last year, so we have to rush to collect time.

But Wang Bole, who has 15 years' experience in cotton spinning business and holds the post of Secretary General of the Zhejiang chamber of Commerce in Akesu, looks forward to the unpredictable trend of cotton prices in the future.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd.: Frankly speaking, we dare not say this year's scenery this year. Next year, we will say how to go next month. At present, we can see that our textile chain can smoothly marry the cost to weaving, weaving and then getting married to garments. This is a process.

Today's cotton market seems to have proved a popular saying, not the highest, only higher. Faced with rising cotton prices, cotton growers are happy, dealers continue to catch up, but downstream processing textile enterprises are uneasy. Because soaring cotton prices not only mean that their costs are rising, but also mean that industrial risks are gathering to them. How can the downstream enterprises face the cotton price change this year?

The reporter came to Qingdao, Shandong Province, that is, Sheng Bao Textile Co., Ltd., general manager Wan Gang is on the phone with the suppliers.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: how much is it?

25900, it's too expensive. 25900, you sold 18000 a month ago, now you sell 25900.

Wan Gang mentioned on the phone that the cotton is the US SM grade cotton that has just arrived at Qingdao port, which is only three grade cotton in China. It is considered as a relatively common cotton in China. The price of Xinjiang cotton has almost doubled compared with the same period last year. Wan Gang wants to cut costs by importing cheaper cotton. But he found that such cotton became more and more difficult to buy.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: and now, there seems to be a shortage of resources for performance. That's how much you want to buy, not how much you want to sell.

There are more than 10000 managers with similar feelings.

Qingdao's hi Ying Home Textile Co., Ltd. Lu Liang Cun: the price of cotton yarn has increased by 70% to 80%.

Qingdao Luxi Liang Home Textile Co., Ltd.: now (cotton yarn price) to 40000 yuan per ton, the lowest time is 21000 yuan per ton, up almost 100%.

According to the introduction, the signing period of textile enterprises is shorter than a month, and the length can be up to one year. And when the enterprise is signing orders with customers, the main consideration is the price of raw materials at that time.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: we have received all orders this month in advance. If the delivery is performed according to the contract, it is actually a loss. We calculate that it is a common loss of 3 thousand yuan per ton of cotton yarn.

The steep rise in cotton prices has brought great pressure to the enterprises, but what is even more painful to them is that cotton prices are rising very fast and unable to form a stable price.

Gong Chengan, general manager of Qingdao Guihua Knitting Co. Ltd.: I think the speed of its growth is surprisingly fast, too fast, less than three days to rise 2 thousand, and 2 thousand days later.

Qingdao Liang Ying man home textile Co., Ltd. Lu Liang Village: price is not stable, our final product quotation can not be reported.

At the same time, the sharp rise in cotton prices has also made the enterprises more worried about new orders. The order with higher cotton yarn content, such as the order of cotton or the larger size of the order, will be correspondingly reduced or unanswered, and the product quotation will also be increased. Qingdao Guihua Knitting Co., Ltd. recently gave up an American order. Last year, when they signed a contract with a customer, the price of cotton yarn was 28 yuan a kilogram, but the price of cotton yarn has risen to 40 yuan a kilogram once again this year when negotiating again. If we use 500 grams of cotton yarn to calculate a garment, the cost of each garment will increase by 6 yuan.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: I ask the client to raise the price and raise the price to give me this dollar to go up to me. The customer does not accept it. He does not accept it. It means he will not accept my price and I can not make his order.

With the rapid rise of cotton prices, inventory has also become a double-edged sword for textile enterprises. Generally speaking, the raw material inventory of textile enterprises will remain in the range of 2 to 3 months. If the previous inventory helps the enterprises share the pressure brought by the price increase, then when the cotton price has reached a historical high, inventory may become a risk for the enterprise.

Therefore, almost all textile enterprises have reduced their inventories.

Qingdao Xi Ying men home textile Co., Ltd.

Lu Liang Cun: inventory relative to cotton yarn prices did not rise when less.

Reporter: how much less?

Qingdao Xi Ying men home textile Co., Ltd.

Lv Liangcun: 20% to 30% less.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: the amount of cotton yarn we reserved is basically 2 months or so, our production volume is 2 months, but to 40 thousand yuan, I personally think that the price is relatively high. The space for upward appreciation is not very large, and the space or opportunity to decline is relatively large. So after 40 thousand, there is not much stock of cotton yarn purchased.

Reporter: how many stocks are left in the enterprise now?

Gong Chengan, general manager of Qingdao Guihua Knitting Co. Ltd.: it's enough for a month now.

As cotton prices continue to rise, China reserves cotton management company has begun selling national reserve cotton. However, because the supply is far less than the demand of enterprises, the competition of auction competition is also fierce. Feng Renpeng is the business manager of the Qingdao shimoshi Textile Co., Ltd., which is responsible for the procurement of cotton. He and his colleagues often fight all night to auction cotton reserves through the Internet. According to the trading rules, only one minimum price is set up in the central storage cotton. All member enterprises increase the price on the basis of the lowest price. The added price must be 20 yuan. If no member raises higher price within 30 seconds, the auction will be successful. According to Feng Renpeng, the most painful auction he had experienced began in the afternoon of October 15th and lasted until the afternoon of 16, and the auction continued.

Feng Renpeng, business manager of Qingdao Sheng Bao Textile Co., Ltd.: I stared at (3:30) about 3:30 p.m., and I couldn't help it. I took a nap there, took a nap and looked up, and opened my eyes to see that the system was closed.

At that time, Feng Renpeng was surprised and immediately looked at the results of the transaction. Fortunately, the last offer was successfully auctions.

Interviewer: what if I didn't get it?

Feng Renpeng: I didn't take it at that time. I was very angry. I stayed up for so long. I was very tired. I didn't sleep for 25 hours.

In addition to bidding for national cotton stores, many textile enterprises also reduce the consumption of hydropower and save costs by importing advanced technology and equipment. Alternative materials have also become the favored object of enterprises.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: we made 70% of pure cotton in the early stage, and 30% of other chemical fibers and blended fabrics.

Although the impact of this round of cotton prices on textile enterprises is different, in the long run, all links in the entire textile industry chain are closely linked.

Gong Chengan, general manager of Guihua Knitting Co. Ltd., Qingdao: it is impossible to say that your cotton spinning enterprise is very prosperous. The finished products are very troublesome, and the garment enterprises are not very prosperous. Cotton spinning enterprises are very troublesome.

The cost risk caused by soaring cotton prices, coupled with exchange rate fluctuations, forced many small and medium-sized textile enterprises to abandon overseas orders this year. Some European and American traditional customers began to turn to India, Vietnam and other countries. But even so, these overseas customers can not get cheaper products than in previous years, because the rising tide of cotton prices has not only happened in China, but also swept the international market.

Just as China's cotton prices have risen all the way, international cotton prices have also reached record highs. Cotton has risen nearly 50% and hit 15 year highs since the end of 7 to the beginning of October. In October 22nd of New York, NYBOT cotton futures closed again on Friday, the highest level since 1861.

China Agricultural University Professor evergreen: cotton from seed cotton purchase price, futures prices, even a record high.

Evergreen, a professor at China Agricultural University, told us that the sharp rise in cotton prices is directly related to the shortage of cotton supply. China, India and Pakistan are important cotton producers all over the world. A series of natural disasters have occurred in the three countries this year. This resulted in a significant reduction in cotton production, which created a huge gap between global cotton supply and demand. Reuters Andrew Potter told us that China is the largest textile exporter in the world and is also the largest cotton consuming country. Due to the significant reduction in local cotton production, the demand for imported cotton has increased substantially, which has partly contributed to the rise in global cotton prices.

Andrew Porter, Reuters Observer: And although India will re-enter the market in November, analystsdon "t t", "India", "India, China," India, "although the cotton will re-enter the international market in November, analysts expect that this year's output will not be able to meet global demand. China's demand has also pushed up prices. China's textile industry is looking for new cotton suppliers due to a reduction in domestic inventories due to reduced production and floods. )

Supply is decreasing, demand is increasing, supply and demand are huge, and cotton prices have been refreshed again and again. At the same time, the weakness of the US dollar and the spread of global monetary liquidity also contributed to the rise in cotton prices.

China Agricultural University Professor evergreen: excessive liquidity has played an important role in promoting cotton price rise. Because other commodities besides cotton have similar situations. If there is only one commodity (rising), you can say the reason of supply and demand. So many commodities, the economy is not very good, but we copper to the historical high point, rubber is also agricultural products, and cotton almost. "

Andrew Porter, Reuters Observer: "The weakening U.S. dollar is also hiking up the price of of," (the weakening of the US dollar has also led to a rise in cotton prices, which will continue for quite some time).

No matter how long the period is, no one can give an exact answer. However, from historical data, Gao Fang is worried about the uncertainty caused by the rising price of cotton.

"From historical experience or rules, cotton prices are very few at high prices. For example, when the international cotton price came to a peak in 1995, there was a sharp drop in the short term, and the domestic cotton price was also the same as in 2004. There was a sharp drop in the short term, and another high price. This high price support for a very long time is also very small.

Gao Fang, executive vice president of the China Cotton Association, told us that once the sharp drop has occurred, the risk of the entire industry will be difficult to estimate. The first thing to do is to increase the cost of textile products.

Gao Fang: if we are talking about a cotton shirt of 350 grams and a cotton price of 10 thousand yuan per ton, then this shirt will go up by 6 yuan.

Such an increase in cost is a great pressure on China's cotton textile exports, which account for a large proportion of the medium and low-grade products. Therefore, the most worrying thing at the moment is the rise in cotton prices, which will have an adverse impact on the entire textile industry and even China's exports. "

Gao Fang: if this cotton price rise is not sustainable, especially when the textile exports, if China and even the world's cotton prices have plummeted, then the whole industry will bring great losses.

In the face of seemingly unstoppable cotton prices, Professor Chang Qing believes that this is a warning that it is a warning that Chinese enterprises do not have good financial instruments such as futures.

Chang Qing: so as an enterprise, we must use it to hedge against the risk of price fluctuation. Otherwise, the price fluctuation is normal, high and low, so it will affect the enterprise, so the enterprise will have some problems.

How to avoid risks brought about by price changes in a market with varied prices, Professor evergreen believes that risk should be taken into consideration, and fluctuations can be controlled, so that enterprises can safely produce and better enhance the competitiveness of Chinese enterprises in the international market.

Chang Qing: therefore, if China's textile industry wants to improve competitiveness, it really needs this ability to raise its risk of managing price fluctuation, which will make price fluctuation controllable.

"The price of the market economy is changing, but at the same time, it provides you with the tools and tools to lock down the price. If you can make use of it, you can lock in the raw materials and lock in all aspects of the exchange rate, so your company can safely produce.

Half an hour observation

Although the reasons for the rise in cotton prices at home and abroad are not the same, it is at least clear that after the outbreak of the international financial crisis, the consequences of injecting large quantities of liquid money in order to save the economy began to emerge at all levels. Coupled with the competitive currency devaluation of some countries, many commodities have seen price fluctuations in the international market recently, and traditional export industries like textiles are now entering a high-risk era. Such pressure not only brings pressure to domestic enterprises, but also brings impetus. It really learns to use financial means to spread risks and resist shocks. Before, we have repeatedly predicted that the post financial crisis era is not a calm and calm era, and enterprises will face more complicated and more rigorous tests. Now, it seems that such a prediction is not a matter of worrying.