1-8, Domestic Textile Industry Profits Drive Cotton Prices To Rise Too Fast.

According to the data released by the National Bureau of statistics, 1-8 months in 2010

In the 1-8 months, the total profit of the textile industry was 125 billion 200 million yuan, up 50.6% from the previous month, the first 8 months.

In terms of industry, the textile industry achieved a profit of 76 billion 400 million yuan, an increase of 53.6%, and clothing and its apparel industry.

In the 1-8 month, the industry's profit grew rapidly, and reached a record high. It became one of the impetuous factors to promote the massive purchase and storage of raw materials in industrial enterprises, and aggravated the tension of cotton supply in 09/10, and pushed cotton prices to a new high.

Supplement:

In October, under the dual pressure of domestic inflation pressure and cotton gap, cotton and cotton yarn prices continued to rise, all of which reached a record high. Cotton prices rose more than cotton yarn prices, and the actual profit level and profit margin of the textile industry dropped significantly.

BOABC monitoring showed that the average monthly price of cotton in October was 24748 yuan / ton, up 28.51% in the annulus, up 83.37% over the same period last year, and the price and the year-on-year increase were all at a record high.

Cotton yarn, despite the cost of cotton pushing prices continue to rise, but after all, by the decline in the actual consumption of domestic residents, cotton yarn price increases were significantly restricted.

The average monthly price of 40s cotton yarn is 32450 yuan / ton, and the average monthly price of 32S cotton yarn is 32228 yuan / ton, up 10% and 14.93% respectively, up 59.81% and 69.17% respectively.

Considering the price difference and fixed cost of cotton and yarn, the yarn profit of pure cotton yarn was reduced to 1395 yuan / ton in October, the lowest level since April.

Considering the impact of raw materials, fuel power and other costs, it is estimated that the cost will be increased by more than 8% in October, the actual yarn cost will be reduced to 934 yuan / ton, and the profit rate of the industry will be 2.99%.

At present, cotton prices are in an excessive upward trend. For the overshoot after market shocks, the current high cotton prices will drive the textile industry's profits to continue downward, and lower industry profits will increase the risk of cotton prices.