Cotton Prices Plummeted 23.6%&Nbsp, Still Going Down

"To come out sooner or later is to be paid back", knowing that cotton prices have recently plummeted. Several textile factory owners can not help sighing: "in the first half of the year, making money is crazy, and now eating it has to spit out."

The NDRC issued a document yesterday that the domestic commodity prices have dropped sharply since November 12th.

As of November 18th, the cotton futures contract price of Zhengzhou commodity exchange rose from 13280 yuan / ton at the beginning of the year to 27100 yuan / ton, with a cumulative increase of 104.07%.

In the same period, spot 3 class cotton price also rose from 12977 yuan / ton to 28500 yuan / ton, the cumulative increase of 119.62%, if compared with the highest price of 33000 yuan / ton before the crash, the increase was even about 1.5 times.

However, the price of cotton futures, which had been on the rise for 75% months in two months, showed a downward trend in recent trading days, and the price fluctuations of seed cotton and lint were equally fierce, with a drop of about 10% in just a week, and the market paction was also changed rapidly from the earlier hot to the cold.

The collapse of cotton prices triggered an earthquake in the textile raw materials market, and prices of polyester, viscose, yarn and so on all declined significantly.

Meanwhile, the collapse of cotton prices means that the high profit margins of cotton mills are coming to an end.

According to the insiders, from the perspective of cotton yarn profits, the cotton mill began to soar in March this year, and the gross profit margin of some enterprises reached over 20%. Then it dropped slightly. But generally speaking, the profit of cotton yarn theory of spinning enterprises is generally at the best stage in history.

Pan Haoruo, general manager of Changzhou Wujin Ma Hang yarn weaving Co., Ltd., told reporters: "the profit of cotton yarn per ton of cotton mill is up to 6000~10000 yuan this year. Before that, only 1000~2000 yuan per ton, and cash flow in the cotton mill is very abundant, which is the best time in these decades.

Now the price of cotton yarn has begun to loose, and 500~1000 yuan per ton, and the market will be clearer in one or two months. "

The secret of this year's profit is that a large quantity of cotton and gauze has been stored before the cotton price has risen sharply in the beginning of the year.

Previously, Jiang Peng, a representative of Huafu color spinning securities affairs, told this newspaper that the company bought a lot of cotton at low cotton prices this year, so it has greater initiative in operation.

However, "Cheng also hoarding goods, but also hoarding goods."

In a cotton yarn mill in Huaian, Jiangsu, the normal cotton stock should be around 4000 tons. Due to the good sales this year, the stock dropped to about 1000 tons.

According to the analysis of the industry, the market faced by cotton spinning enterprises is rare this year. Due to the huge increase in profitability, the inventory of finished products is almost absent. Most of the gauze inventory in textile mills is generally within half a month.

In October this year, the average stock days of yarn and cloth in cotton spinning enterprises had dropped to a historical low of 6.82 and 8.74 days respectively.

The bottomless cotton mill sent a large number of salesmen to buy cotton. The industry said that when the cotton rose to 33 thousand yuan per ton, cotton mills bought a lot of cotton. Now cotton prices are diving. The more time these mills buy, the harder they will get behind, and the money they earn in the first half of the year.

Pan Haoruo believes that because of the soaring domestic cotton and cotton yarn prices, the order of textile and garment industry has been accelerated to Vietnam, India and other countries. The original garment enterprises are shifting outwards. Now more and more textile enterprises join the pfer team, which will reduce the demand for domestic cotton yarn.

At present, although the cotton mill has lowered the factory price of cotton yarn, the decline is not large. Because of cash abundance, some cotton mills are still hard to carry. If next year, 1~2, the US and other overseas markets will significantly reduce their orders to China.