According To The Price Bureau Of Hebei Province, Cotton Prices Continued To Rise, Reaching A New High In Ten Years.

according to Hebei Provincial Price Bureau website news, starting in March this year, affected by domestic cotton production and international market cotton prices rose, domestic cotton prices continued to rise, especially after mid September cotton reserves bidding, futures matching prices sharply soaring, driving the purchase price of new cotton rose sharply. current cotton Prices have exceeded the peak value of cotton prices in October 2003, the highest in ten years.

There are four main reasons for the sharp rise in cotton prices: first, the total supply of cotton has been reduced. In 2009, the low cotton price and low income situation in the domestic market affected the enthusiasm of cotton growers and led to a decline in cotton planting area this year. Meanwhile, factors such as delayed planting and frequent occurrence of disastrous weather have also affected cotton yield and quality. According to the Ministry of agriculture forecast, China's cotton output will decrease slightly in 2010. In addition, because of the general increase in grain prices this year, cotton growers have a higher expectation of cotton prices, and the high price and fast rise have made cotton farmers reluctant to sell.

Two is the rapid growth of cotton demand and the expansion of production demand gap. With the revival of domestic and foreign economies, the domestic and foreign textile market this year has seen a good momentum of development. The rapid development of domestic textile industry has led to an increase in domestic demand for cotton. According to the National Bureau of statistics, retail sales of clothing shoes and hats and needle textiles increased by 24% over the same period in 1-9. Textile and clothing exports also showed a continuous upward trend. According to statistics from the General Administration of customs, in the 1-8 months of this year, China's clothing exports amounted to $80 billion 290 million, an increase of 19%, and textile yarn, fabrics and products exported 49 billion 510 million US dollars, an increase of 32.3%.

Three, the price of cotton in the international market has risen sharply. This year, the international market Cotton prices have entered a rising channel, showing a continuous upward trend. According to statistics, on October 25-29, cotton futures in the New York Mercantile Exchange averaged 2527 US dollars / ton, up 13.6% over the 10-14 day average price in September, 54.5% higher than the 4-8 average price in January. The sharp rise in cotton prices in the international market has had a strong pulling effect on cotton prices in the domestic futures and spot markets.

The four is speculative capital speculation. RMB appreciation expectations and news reports "La Nina" phenomenon may bring hurricanes, rainstorms and severe cold effects this winter. Hot money has entered a large number of cotton futures and spot markets for speculation.

The sharp rise in cotton prices has led to the further expansion of the production and operation costs of textile and garment enterprises, and a certain impact on the production and operation of the textile and garment industry. From the perspective of the transmission of industrial chain prices, cotton prices have driven up the price of cotton yarn, which makes cotton textile enterprises earn more profits from cotton yarn, and the impact is relatively small. The downstream industries such as weaving, printing and dyeing, clothing and other industries have different price increases, but because of the higher proportion of cotton yarn cost, the cost transfer of raw materials is more difficult, and the impact is relatively large. Some downstream enterprises such as printing and dyeing, clothing and so on have been trapped in the business dilemma.