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    The Price Of Cotton Yarn Is On The Decline.

    2010/11/20 14:26:00 51

    Cotton Yarn Plummeted High Profits

      

    from

    cotton

    The 11 day slump began. As of 18 days, just a few days later, the purchase price of Wei Qiao lint had already been reduced by 3200 yuan, of which 3 grade lint fell to 28300 yuan, 4 grade lint fell to 27900 yuan, and cotton futures were the stimulation of several limit plates, but cotton's upstream product cotton yarn price has been strong.


    From the perspective of cotton spinning enterprises, cotton yarn has many reasons for not falling.

    For example, first, cotton textile enterprises are still using high priced cotton at the early stage of purchase, and the cost of cotton yarn has not yet been shown in time. Secondly, orders for cotton yarn enterprises can usually last until the end of November to the beginning of December, so at present, cotton yarn enterprises do not worry about price fluctuations, they only need to maintain pre orders. Three, cotton yarn enterprises must strive to maximize profits and stabilize prices so that they can keep up to the profits of up to 10000 yuan.


    Although cotton spinning enterprises do not want to

    Price reduction

    But what is the actual situation?


    First of all, the market of cotton spot market is worrying.

    The 18 day's cotton market is still hard to climax, and all kinds of bad factors continue to hit this young cotton.

    With the early opening of Zheng cotton, the market was once delighted, thinking that the pressure level of 27000 yuan was saved, but the instant turn was a continuous blow.

    On the 18 day, the purchase price of the Wei cotton lint was reduced by 500 yuan, of which 3 was quoted at 28300 yuan, and the 4 level quoted 27900 yuan / ton.

    According to the introduction of some small and medium-sized cotton processing plants, at present, most of the cotton in the warehouse is priced at about 7 yuan, and the cost price is estimated to be around 30000 yuan.

    According to him, there are still many promising cotton processing plants ready to start selling cotton in May next year. Maybe the tension in 4 and May may give the cotton market a bit of a pullback.


    The spot market of cotton is rather unoptimistic, and cotton futures are even worse.

    The state's regulatory policies are being further intensified, and the panic of raising interest rates also makes domestic commodities turn around, and cotton is also an important agricultural product.

    Development and Reform Commission

    Concerted attention, severe punishment of hoarding, and a series of actions to combat market hype also made it difficult for cotton to rise substantially in the short term.

    In this round of explosion caused by cotton, the failure of cotton also brings great pressure to other products. The main force of the market temporarily fleeing the market. The panic in the futures market has spread to the whole industrial chain, and the wait-and-see from the upstream to the downstream has also weakened the market once.


    In addition, the high profits of cotton yarn are known worldwide, and the high profits of cotton spinning enterprises are also criticized by the market.

    At present, the main market quotation is 28000-28500 yuan / ton, plus 20% loss and 6000 yuan processing charge, the cost price of 32S cotton combed yarn is only 40000 yuan / ton, and has nearly $10000 profit with the price of 48000-50000 yuan / ton on the market.

    Even according to the highest market quotation of this year - 32000 yuan / ton, the cost price of 32S cotton combed yarn is only 45000 yuan / ton, and the profit of the current company is also close to 5000 yuan.

    The cotton yarn should be lowered.


    In addition, from the acceptance of the downstream market, the market prospect of all cotton yarn is not optimistic.

    Although the price of cotton cloth is stable because of the stability of cotton yarn, the quantity of new orders is small, the market shipments are almost broken, and the profit is even more difficult.

    Shandong a medium-sized home textile fabric enterprise a 108 inch whole cotton fabric, using the 21S cotton spinning as raw material, according to the specifications of 108*58 weaving, at present 19 yuan / meter.

    This cotton cloth does not calculate the loss, the gram weight is 504 grams / meter, according to the 21S half combing price is 33000 yuan / ton, then this kind of fabric's cotton yarn cost is converted to 16.5-17 yuan / meter, plus 6-8%'s weaving loss, the cost rises to 17.5-18.5 yuan / meter, while the weaving cost is calculated by 1 gross and 2 points per shuttle, the processing fee is 2.75 yuan, and the sizing cost is about 5 gross / meter, the total cost is 21 yuan, but the manufacturer's quoted price is only 19 yuan, the loss is 10%.


    We can say that small factories have to carry out low price policies for shipment. But what about their profits? A market price of a 32S semi combed cotton grey fabric is priced at 13.3 yuan in Xinye, Henan. According to the density of 130*70, it is woven on air-jet looms, and the width of white blanks is 63 inches. The fabric weave in this specification is 275 grams per Mick. At present, the price of the 32S semi comber yarn is calculated at 45000 yuan / ton, the cost price of cotton yarn is only 12.5 yuan, plus the cost of wastage, weaving and sizing, even if the cost of the factory is not guaranteed.


    At present, the price of all cotton yarns is high and stable, with the stable market of the mainstream factories such as Wei Qiao, Huafang, Yinfeng, Yue Da, Tai Feng and so on, it also brings confidence to all enterprises in the market. However, from the end of November to the middle of December, when the order of the whole cotton yarn enterprises is basically concluded, the inventory of all cotton yarn manufacturers will increase bit by bit.

    Although big factories like Wei Qiao and Huafang are not afraid of inventory pressure, they can remain stable for a long time. However, some small and medium-sized enterprises have to tighten their shipments because of the shortage of funds. The low price is the only way.

    Once the low price storm is approved by the market, it will stimulate a new round of market following.


    At present, the state's regulatory policies are being further intensified, and the panic of raising interest rates also makes domestic commodities turn around. Cotton as an important agricultural product has received unanimous attention from the national development and Reform Commission. It has severely punished the hoarding and the market speculation and a series of actions have also made it difficult for cotton to increase substantially in the short term. In addition, many cotton yarn enterprises are ready to start the fall step because of the poor market supply and demand, and more manufacturers will face the threat of the end of the end of the month. It is expected that in the next half month or so, there will be a wave of callbacks in the whole cotton yarn market.

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