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    Cotton Prices Fall Back To &Nbsp; Clothing Companies Substantially Raise Export Quotes, Resist Risks &Nbsp, And Difficult To &Nbsp; Clothing Companies Substantially Raise Export Quotes And Resist Risks.

    2010/11/4 16:33:00 51

    Clothing Enterprise

       It is reported that in just two months, the spot price of domestic standard cotton rose sharply from 18 thousand yuan / ton in September to 28 thousand yuan / ton in November. Under the impact of frenzied cotton prices, Chinese clothing exporters are trying to raise export quotas substantially. At the Autumn Fair Order The price generally increased by about 30% compared to the same period, and the price range of individual products was even as high as 40%.


    Li Xuerong, a senior researcher at CIC, pointed out that cotton Rising prices will inevitably be transmitted to cotton, cotton, cotton products, clothing, home textiles and other downstream industries. It can be seen from the semi annual report that the most direct spinning enterprises in the industrial chain have become the biggest winners. Many enterprises have doubled their gross profits, while the most downstream garment companies have seen little increase in prices, some of them are almost at a loss, and many enterprises are losing money. The sharp price adjustment of the autumn order garment orders is a strong response to the crazy rise in cotton prices, although it may lead to a reduction in orders, but it will help improve the gross profit margin and future performance of garment processing enterprises.


    Li Xuerong further pointed out that the price increase of processing textile enterprises is reasonable. The signing period of textile enterprises often ranges from one month to one year. When considering contracts with customers, the main consideration of enterprises is the price of raw materials at that time. Because of the rising cost, the appreciation of the renminbi and the expectation of inflation have brought a lot of uncertainty to the enterprises, resulting in increased risks and enterprises cautious. Not only that, the early profitable cotton yarn enterprises are also beginning to worry that these enterprises will also run out of cheap cotton before purchase. Raw materials are high in stock, but yarn prices are hard to support effectively. The industry chain is difficult to transmit. Is it worth worrying about whether the cotton spinning enterprises can maintain the current profit margin in the second half of the year?


    For cotton prices Crazy rise The reason why Li Xue Rong pointed out that in September 26th, the relevant state departments continued to put 400 thousand tons of cotton reserves through auction to try to stabilize cotton prices, but did not show much effect. In October, cotton prices continued to sing all the way. The reason behind the high cotton prices is relatively complex. The expansion of demand is on the one hand. The superposition of many factors, such as the reduction of output caused by weather disasters, market speculation forces, appreciation of the renminbi, CPI expectations, malpractice of cotton import system, difficulties in Sinotrans cotton transportation and India cotton once embargo, will eventually lead to a sustained rise in cotton prices.


       The 2010-2015 year China cotton market investment analysis and prospect forecast report released by China investment advisor shows that at present, some forecast data show that the total output of international cotton in 2010/2011 has increased considerably. However, according to the report released by the US Department of agriculture in early October, the global cotton gap in 2010 /2011 was 890 thousand tons. Considering the impact of many factors such as the future cotton demand, planting costs, market speculation and natural disasters, cotton prices in the future will be hard to come down and will probably continue to operate at a high level.

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