Prevent Cotton Prices From Skyrocketing And Plummeting; &Nbsp; &Nbsp; Stabilize The Cotton Market.

The NDRC pointed out in November 11, 2010 that since November 12th, Wei Qiao group, as the weathervane of the industry, began to continuously reduce the price of its third grade cotton and four grade cotton's lint to the factory in November 11th, and the reduction rate has been even more than 1000 yuan per day for several days, and from the 11 day, China's cotton price began to decline for two weeks, and cotton fell by 23.6%.

The NDRC believes that one of the main reasons for the rapid decline in commodity futures prices is excessive speculation in the pre market.

As of November 18th, Zhengzhou

At the same time, cotton futures also appeared several limit plates.

Cotton futures, which had been on the market for two months, surged 75% 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 market pactions were also rapidly cooled from the previous hot.

The collapse of cotton prices triggered an earthquake in the textile raw materials market.

In this regard, a clothing business owner sighed for the times, but at the same time worried that cotton prices would rise again.

"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."

This scene can not help but recall the situation 6 years ago, and cotton prices fell to the bottom after soaring.

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 profit of cotton mill began to soar in March this year, and the gross profit margin of some enterprises reached more than 20%. Then it dropped slightly, but generally speaking, the profit of cotton yarn in spinning enterprises is generally at the best stage in history.

A yarn dyed fabric enterprise in Changzhou said: "the profit of cotton yarn per ton of cotton mill is up to 6000-10000 yuan this year. Before it was only 1000-2000 yuan per ton, the cash flow in the cotton mill was very abundant. It was the best time in these decades.

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

In fact, the secret of this year's cotton mill's profit lies in the fact that a large quantity of cotton and gauze has been stored before the cotton price has risen sharply in the beginning of the year.

Some companies bought a lot of cotton at low cotton prices this year, so they have greater initiative in business.

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.

In the case of high cotton prices this year, orders for textile and garment industry have been pferred 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.

A person who has been engaged in cotton trade for a long time points out that although the yarn factory has lowered the factory price of cotton yarn at present, its decline is not large. Some cash mills are still hard to carry. If the order from overseas markets in the United States and other overseas markets is significantly reduced in the next 1-2 months, the price of cotton yarn will also go down.

China's cotton market is still immature, and there are many factors that influence it, especially the huge power of policy factors.

The regulation of cotton, which is related to the national economy and the people's livelihood, should not only be cautious but also improve the artistry of macro regulation and control.

Cotton prices skyrocketed, textile enterprises are in dire straits, cotton prices have plummeted, and cotton enterprises have become ants on hot pots.

Therefore, stabilizing the cotton market and preventing the sharp rise and fall is a pressing matter of the moment.