Why Does Cotton Go From "Paradise" To "Naked Swimming"?

Wang Hua is the business manager of Xiajin Tianhong Cotton Textile Co., Ltd. in Shandong province. He has worked in the cotton industry for nearly 10 years, but he has never experienced such a situation: there are hardly any sales of cotton yarn on the more than 20 day. Finally, he decides what price to ship, but the customer still shows no need.

"It was not so bad during the SARS period in 2003. then Cotton yarn After the price crazily pushed up to 18000-19000 yuan / ton, there was also a trough, but at that time, the price was cheaper and someone else bought it. " Wang Hua said.

Collective shutdown

Wang Hua clearly remembered that on November 10th, the cotton market suddenly reversed and could not allow everyone to have any mental preparation. Customers suddenly stopped trading on this day, until now.

At that time, the price of Tianhong cotton yarn had reached 31500 yuan / ton. At that time, the futures market price had risen to 33000 yuan / ton. In a short span of 20 days, the price of 25000 yuan / ton was unnoticed.

"Just like the price increase in the previous period. cotton Up 1000 yuan per ton per day, one price per day. This is just the reverse. Falling prices are also a trend of the day. No one can tell the market of tomorrow.

Xia Xing Yang, which has been supplied to Tianhong cotton textile mill, is also in the same situation recently. He is the director of Tianhong cotton processing plant in Xiajin County, Shandong Province, and produces lint. Tianhong cotton processing plant and Tianhong cotton textile industry are two upstream and downstream businesses, belonging to a boss control.

Xia Hangyang said that no one sold cotton for some time. No one can afford to pick up seed cotton now. No one is willing to sell cotton growers.

Cotton growers say that they are not sold at 7.4 yuan per catty, but now they drop more than 2 yuan per catty, and the price of 5 yuan / Jin is even more expensive. They must wait for the "raise money" to sell again. Cotton farmers who have experienced a high price can not accept the rapid price reduction now.

Cotton farmers can store cotton for 1 years without affecting quality. They can wait until next year when the new cotton market goes on sale.

The 20 tons of seed cotton stored in Xia Xing Yang's hands will soon be used up. He is now in a hurry but has no way. "We can only wait, maybe we will wait until later."

Analysis of the industry, the state's suppression of cotton prices, from cotton farmers, cotton processing enterprises, to cotton textile enterprises, all beaten.

Wang Hua just visited the old friends of Wucheng county two days ago to see what his colleague was like. As a result, it was not only Tianhong, the surrounding cotton processing plant, cotton yarn mill, weaving mill, but also the same situation.

Yang Hongwen, director of the relevant department of Wucheng County Yinhe Textile Co., Ltd., Shandong, said that the price was very bad and bad. The price fluctuation of 500 yuan / ton is their ideal state. This year, when the price of lint was high, it sold to more than 31500 yuan / ton, falling down to 25000 yuan / ton, or more than 5000 yuan.

Nude swimmer

Now the most uncomfortable people are cotton "two dealers", those cotton hoarding cotton processing enterprises. Most of the lint is now in the hands of two dealers.

It is reported that there is a cotton processing enterprise in Wucheng, and in the early November, thousands of tons of cotton were hoarded. lint The majority of hoarding funds of enterprises are to buy thousands of tons of lint by raising funds and bank loans, borrowing from relatives and friends and their own funds. Now it's in the hands. But people in the industry are reluctant to disclose the name of the cotton processing enterprise.

The insider said, "the boss of this enterprise does not know how to do it now. The current market price is about 25000 yuan / ton. They bought it at a price of 27000-28000 yuan / ton. Not selling and pressing funds is in a dilemma.

According to statistics, cotton prices under the state's strong regulation and control, has a 23.6% decline. Cotton yarn prices also dropped by 1500-5000 yuan / ton.

Shandong Wucheng Huaxing Group cotton Co., Ltd. is one of the largest cotton textile processing enterprises in Wucheng city. At present, the cotton yarn has been overloaded for 15-20 days, about 150 tons.

Yang Hongwen said cotton prices were not affected when they rose, because they had stock of lint. 24000 yuan -26000 yuan / ton price to buy. Therefore, there is no use of high priced cotton, and the cost of raw materials is not great. But after the cotton price has come down, the pressure is coming, and the products can not sell.

Tianhong cotton textile company's inventory is also increasing. The goods have been pressed for 20 days. Wang Hua said that powerful enterprises can carry on the past, but enterprises that lack funds and fail to see the market are estimated to have to stop production.

Wang Hua said that some of the downstream customers of the cotton yarn business, especially those small looms, did not sell because of the recent weaving, and about 30% of them had been cut down.

Bottom time?

Cotton prices have shown signs of steady recovery over the past two days.

Liu Guanghou, general manager of Shandong Tianhong Textile Co., Ltd., intends to buy 500 tons of -600 tons of cotton at the current price, enough for his own textile mill. He said, this is a small opportunity. Estimated to earn millions.

Liu Guanghou said that the most effective way for the state to introduce measures to control cotton prices is to pull cotton prices through cotton yarn links. The state will surely regulate both hands at the same time, control cotton prices up one by one, control inflation, and protect the interests of cotton farmers and enterprises at the same time. Therefore, cotton prices will slowly rise.

Liu Guanghou worked in the cotton industry for more than 30 years. He predicted the bottom price of cotton. The price of grade four cotton is about 24500 yuan / ton, and the price of grade three cotton is about 27000 yuan -28000 yuan / ton. He believes that cotton farmers are less motivated than this price. "Cotton prices are at a relative low level now. It's almost time to get some cotton." He estimated that cotton prices would pick up before and after new year's day. Although cotton prices have picked up in recent days, it is not a real rebound, but also a concussion. The reason is that the current trend of cotton yarn is not good, so cotton prices are also rising.