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    Cotton Prices Still Fall By 10%

    2010/11/27 10:46:00 32

    Cotton Price


    In the past more than 10 days,

    cotton

    Prices plummeted by more than 20%.

    Insiders said upstream

    Do spinning

    ,

    Weaving

    Enterprises may be able to retire all over the body, but downstream clothing companies have backlog a lot of high priced purchases of cloth and clothing made therefrom, and raise the terminal price.

    At the same time, the weather has not become cold, and the sales of winter clothing are in the doldrums.

    According to the insiders, if cotton prices continue to fall, there will be no cold weather at the end of December, and clothing companies will have to turn their clothes in a month ahead of schedule.


    Cotton prices drop more than 20% in more than 10 days.


    Yesterday, the national development and Reform Commission released monitoring data shows that since November 12th, domestic commodity prices have dropped sharply.

    The closing price of November 24th was higher than that of November 10th, or 11, when domestic copper, zinc, rubber, cotton, PTA, plastic, soybean oil, sugar and other commodity futures prices fell by more than 10%.

    Cotton fell the largest, or 23.6%.


    From the spot market, data released by China Cotton Association show that China's cotton price index (grade 328 cotton) fell to 26902 yuan / ton yesterday, compared with the high point of 31302 yuan / ton in November 11th, the more than 10 day time fell 14%.

    At the same time, since mid November, Shandong Wei Qiao group, as a weathervane of the industry, has continuously lowered the purchase price of lint, and dropped 500 yuan / ton on the 24 day. At present, the purchase price of grade 3 lint is 26500 yuan / ton, and the 4 level price is 26100 yuan / ton.


    Cotton prices still fall by 10%


    "Although the decline in cotton prices has been very large, there is still room to fall."

    Jia Fengmei, President of Ji'nan textile and garment industry association, said in an interview with reporters that cotton prices have more than doubled this year over the same period last year. Although there is a big gap between supply and demand, it will not rise to such a degree. With the gradual improvement of the national control policy and the gradual withdrawal of speculation funds, cotton prices continue to fall.


    Reporters noted that the national development and Reform Commission yesterday analyzed the cause of the decline in cotton prices, also said that the pre market excessive speculation behavior, prices from the basic supply and demand, the State Council issued a notice on stabilizing the overall level of market prices to protect the basic livelihood of the masses, highlighting the importance of cracking down on manipulation of the market and other illegal activities, to curb excessive speculation, the market is expected to respond to this profit recovery, rapid withdrawal.


    "However, the space for cotton prices to continue to fall is also limited, and there are still more than 10% falling spaces at most. After all, the gap between supply and demand of cotton is objective."

    Zhang Qingwei, chairman of Shandong sailor apparel Co., Ltd. predicts.

    It is reported that last year, cotton production and demand gap in China was 3 million 600 thousand tons, an increase of 2 million 600 thousand tons over 2008. This year, according to conservative calculation, the gap between production and demand will increase by at least 1 million tons. In the whole 2010/2011 year, the supply and demand of cotton will remain in a tight state.


    Some garment enterprises are locked up.


    "Anything is fired up, eventually someone will take over, and cotton is no exception. Finally, it is a garment enterprise that is likely to be stuck."

    Zhang Qingwei said that cotton prices were high for some time. Clothing companies bought cotton cloth for the production of winter clothes and increased the price of terminal products, which was over 20%.

    In the market, winter clothing is very expensive this year, thousands of yuan or even thousands of dollars. However, from the sales situation, it is not ideal, sales volume has dropped sharply compared with the same period last year, and the product backlog is serious.


    As a matter of fact, there is another important reason for this year's clothing enterprises to produce large quantities of winter clothes and raise their prices. This autumn, the society is widely known that this winter is "extremely cold for thousands of years".

    However, the fact is that not only the "extremely cold" weather is not yet in sight, but this winter in Ji'nan is the latest in 50 years, and the meteorological department also said that the "cold year is extremely cold" is purely conjecture and without scientific basis.


    "If it is warm winter this year, cotton prices will continue to fall, and the worst part is the downstream clothing production, wholesale and retail enterprises in the whole industry chain."

    Zhang Qingwei said, if there is no accident, at the end of December this year, early next year, early January, clothing enterprises must start off the high priced winter clothes one month in advance, so as to lighten the burden and avoid inventory and fight again next year.

    In previous years, the winter sale will usually appear before and after the Spring Festival.

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    Read the next article

    Cotton Price Setback &Nbsp; Speculators From Heaven To Hell &Nbsp; Capital Is Forced To Run Away

    November 10th is the day when the old cotton farmers in Jinshan Town of Jining, Shandong province can not forget. On that day, cotton prices changed for a period of more than two months, down 2% on that day. This is the day when the national development and Reform Commission issued a statement that "speculative capital speculation has led to excessive cotton prices". Subsequently, cotton prices began to "high platform diving".

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