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    The Peak Season Is Not Prosperous &Nbsp; The Cotton Market Actually Deducts "Late Spring Chill".

    2011/4/8 11:15:00 47

    Hot Season Cotton Market In Late Spring

    In April, Zheng cotton continued to be weak, although yesterday's holdings were high.

    Rebound dynamics

    Still insufficient.

    market

    There are big differences between short and long games.

    Circulating in the previous market

    cotton

    duty-free

    Imported

    Down regulation

    Agriculture products

    Equal increase

    Industrial value added tax

    As well as rumors of textile and clothing export tax rebate rate reduction, coupled with the state's 19800 yuan / ton guarantee policy, making the market "empty" gas diffuse.


      

    Downstream textile enterprises optimistic


    Recent orders in textile mills are not very satisfactory, and enterprises are cautious about receiving orders.


      

    First, the export environment is complex.

    At present, the foundation of the recovery of the international market is not solid. The debt crisis of the traditional developed markets has not been eliminated. Some countries have begun to change the way of debt consumption, and the recovery of the market will still be a long process.

    The turmoil in the Middle East exacerbated uncertainty in emerging markets.

    Japan's earthquake also caused some of the export orders for textiles and clothing to be cancelled or postponed.


    At the same time, the rising strength of emerging economies has made the textile industry more competitive internationally.

    Although China is an irreplaceable manufacturing country, the degree and scale of industrial agglomeration in other countries can not be compared with it. However, textile exports in Bangladesh and Pakistan have been increasing rapidly in recent days, which has brought some influence to "made in China".


      

    Second, cost pressures are increasing.

    This year, cotton,

    Polyester fiber

    Staple fiber, etc.

    Raw material price

    High prices and high raw material prices have increased the risk of business operations, making short lists and small bills a normal production.

    Other cost increases have also squeezed the export profit margins of enterprises.

    Some enterprises reflect that the cost of energy and pportation has increased by about 10% in recent years, and the cost of labor has increased by about 20%.

    Price pmission is lagging behind, and the price of products is difficult to synchronize.

    The cost pressure has increased, so that China's textile export prices have to raise prices accordingly, causing some international buyers to turn to these low price markets in India and Vietnam.


      

    Third, the backlog of yarn and cloth keeps the cotton price up.

    Influenced by factors such as early market outlook, the inventory of finished products of yarn and cloth is quite serious at present.

    It is understood that in Shandong Province, which accounts for 25% to 30% of the yarn production per year, some enterprises' stock has been extended from normal 40 days to two months.

    However, the sales situation of gauze is not optimistic. At present, the cotton yarn market is almost stagnant.


    As the majority of spinning enterprises downstream adjust cotton ratio and product mix in a timely manner, increase the output of polyester cotton and blended products to meet market demand.

    Therefore, although the company lowered the price of yarn, such as 32S yarn price from the previous high 43000 yuan / ton, down to the current 37000 yuan / ton, but the price reduction did not promote sales improvement, market volume is still limited.

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