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    Xinjiang Cotton Prices Skyrocketed &Nbsp; Wenzhou Cotton Enterprises Boss How Worry About Words.

    2010/11/4 10:40:00 92

    WenzhouXinjiang

      

    "This time last year was exactly right.

    Cotton enterprises

    When the boss bought cotton in large quantities and sold cotton in hot season, we could make a big profit in doing cotton business.

    This year, cotton prices surged at an alarming rate, causing the risk of cotton business owners to increase.

    capital

    Some of them even went home in the early years.

    Li Qingde, a Yongjia County in Wenzhou, has been doing cotton business for 20 years in Xinjiang. She has already seen a lot of ups and downs in cotton prices. But this time, he also has no idea where to go.


    Cotton prices are twice as expensive as last year.


    Recently, cotton prices have climbed steadily, making Li Qingde's mood index continue to fall.


    The truth is a bit too bad.


    Last year and the year before last, his company acquired more than 30 thousand tons of cotton, and only 5000 tons of cotton were collected so far this year.

    If we do not continue to buy, the company can not meet the needs of so many cotton customers throughout the country.

    Cotton market

    The price is difficult to grasp and the risk is too great.


    Li Qingde told reporters that in 2001, the price of new cotton listed in Xinjiang was only 7000-8000 yuan per ton. Last year, the price of new cotton listed was 14500 yuan per ton. In 2003, there was also a price storm in the cotton market, but at that time the highest price rose to 19500 yuan per ton.

    However, this year, the domestic cotton price has been rising in March, and the market price has not fallen before and after September. By October, the new cotton scale in Xinjiang is 21500 yuan per ton, and the sub cotton is 12 yuan per kilogram, followed by a daily price.

    At present, the cotton market in Xinjiang is about 28000 yuan per ton.


    It is understood that Xinjiang is the most important cotton producing area in China. More than 80% of the cotton in China is produced in Xinjiang.

    Xinjiang's cotton is famous for its low moisture content and long cotton characteristics.


    Cotton traders are worried about a sharp fall after soaring.


    "Because of the rising cotton prices, the company's cotton picking plan is disrupted this year. According to the actual situation of cotton picking in Xinjiang, cotton picking will be over for a while.

    The day before yesterday, the company also set up a seminar specifically for the number of cotton acquisitions this year.

    Li Qingde sighed repeatedly. Now that some of the cotton on the cotton tree has not been picked yet, the market price has gone up like this. This year's cotton business is doomed to be difficult to do.


    Let Li Qingde remember that, in 2003, cotton prices in Xinjiang exploded to 19500 yuan per ton, and suddenly fell 14500 yuan per ton, and some cotton enterprises suffered serious losses.

    In that round of market quotation, a cotton merchant named Xu lost about one million and lost two of Wenzhou's apartments.


    "The momentum of cotton growth this year is much more intense than that of 2003. I do not know if the sharp rise and fall will repeat itself."

    He said anxiously.


    Many cotton enterprises run poorly.


    Behind the high price of cotton is the problem of cash flow in cotton enterprises.


    For example, last year, 30 million yuan of funds could buy nearly 2800 tons of cotton at a time, but only more than 1400 tons this year.

    Bank loans have also shrunk.

    Many banks worry that the soaring price of cotton will bring risks to credit and reduce the credit amount to cotton enterprises.


    The staff of the Agricultural Development Bank of hash City, Xinjiang, told reporters that cotton companies can still borrow money, but the loan amount has shrunk somewhat compared with that of last year.


    This time in previous years, it was the time when cotton business owners lived the most moist days.

    While acquiring new cotton, the company sold the acquired cotton to distributors and textile factories throughout the country.

    This year, a few large knitting factories in Guangzhou have used very little. Especially, several manufacturers of cotton underwear have significantly reduced cotton intake.


    Some of the weaker cotton merchants have even gone home.

    After 7 years of cotton business, Xie has returned to Wenzhou because the funds are not enough and the risk is too great.


    Li Qingde told reporters that under the pressure of funds, the company would receive more cotton and try to satisfy customers' needs, but he was always worried about when cotton prices would fall sharply.


    Analysis


    Cotton prices go up due to many reasons


    Insiders said that when cotton was opened in September this year, several heavy rains caused the cotton picking time to be postponed and the workers from the mainland picking up did not catch up.

    By October, when cotton was picked, cotton pickers could not be recruited, resulting in slow cotton picking, resulting in the gap between supply and demand in Xinjiang's cotton market.

    Coupled with the international environment, for example, this year, the fourth largest cotton producing country in the world, most parts of Pakistan suffered floods.

    Data from the US Department of agriculture show that consumption is more than output for 4 consecutive years.

    Moreover, there are some new cotton traders in the Xinjiang market this year. They have a lot of money and a lot of appetite.


    "This year's cotton prices have reached a record high, and there are various reasons for it. It is suggested that cotton enterprises should not overheat and rush to buy. They should buy according to the actual strength of their own enterprises, so as to avoid a great loss of cotton prices."

    The industry said.


    Market impact of rising cotton prices


    The price of cotton cloth is increased by 20%.


    According to Dongguan Daily reported that the recent sharp drop in temperature, the reporter visited the city business found that the recent quilts, long sleeved clothing, towels, infant clothing and other new products of autumn and winter began to sell well.

    However, due to the impact of raw material cotton prices, Cotton autumn products also rose by 15%-20%.


    Textile enterprises are implicated.


    Cotton generally accounts for 60%-70% of the cost of cotton textile enterprises. The rise of its price affects the downstream industries. Many small and medium-sized textile enterprises say that the increase in cotton prices has made the enterprises "overburdened".

    For some strong textile enterprises, they can rely on abundant inventory to cope with the current pressure of rising prices or directly develop their cotton planting base, and for small and medium-sized textile enterprises with tight funds, they can only choose to cut production or stop production.


    ICE cotton futures hit limit


    Cotton futures on the Intercontinental Exchange (ICE) triggered a limit on Monday. Analysts said that the rise in Chinese cotton prices and earlier dollar weakness caused speculative investors and investors to buy large amounts.


    Li Qingde


    People from Yongjia, Wenzhou.

    In the spring of 17, he followed cousin to hash, Xinjiang, as an apprentice, engaged in a cotton quilt (handmade).

    Over the past 5 years, he has gained a comprehensive understanding of cotton production and sales in Xinjiang.

    In 2006, he set up a company engaged in cotton business in hash City, Xinjiang.


    Since the 80s of last century, Wenzhou people, especially Yongjia people in Wenzhou, have done a lot of business in Xinjiang. Part of the cotton bosses who have made big business have the channels to purchase, process and sell new cotton.

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