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    Cotton Plummeting Clothing Prices Are Still &Nbsp; &Nbsp; Digestion And Storage Of Goods Still Need Time.

    2011/5/6 9:35:00 59

    Cotton And Cotton Price

    Soaring since last year

    cotton

    Once again, the price of roller coaster prices rose. After the historical high of 34870 yuan / ton in February this year, cotton prices began to "shrink from a thousand li" since March, and now it has fallen below 26000 yuan / ton, or more than 25%.

    Insiders pointed out that small and medium-sized textile enterprises in China limit production and stop production. This has greatly weakened demand, and the cotton market wait-and-see atmosphere will continue to increase in the short term.

    Cotton price

    It will soon fall below 25000 yuan / ton.


    Insiders pointed out that cotton prices soared 70% last year, and textile companies have chosen to "hoarding cotton", while some of them are small and medium-sized.

    clothing

    Enterprises choose to stop when the cotton prices are soaring, and the textile enterprises that need to lead to the middle reaches of the industrial chain have great pressure on inventory.

    "Textile enterprises are busy digesting inventory and working capital in the two quarter".


    Haitong futures analyst Chen Dong pointed out that the current trend and signs of cotton are very similar to the situation of soybean crisis from 2003 to 2004.

    Chen Dong said that the fall in cotton prices will hit the small and medium-sized enterprises of "hoarding cotton". "After the cotton boom last year, some enterprises bought high priced cotton for inventory."


    In the retail terminal market, the price of clothing has not been kept for two consecutive months because of the price of cotton.

    Fall

    And there is a decrease.

    "Falling prices of raw materials in the long run can reduce the cost of garment enterprises, but they will not be immediately reflected in terminal sales."

    Hu Haidong, general manager of Zhejiang Xin Xin Garments Co., Ltd., told the morning paper reporter.

    In fact, the major brands including wolves, Lining and Li Lang have increased their prices this year, ranging from 10% to 30%.


    The rise and fall of cotton prices make cotton enterprises and textile enterprises very "entangled". The head of a clothing enterprise said that the rise and fall of cotton prices had completely cut off the idea of raw materials such as cotton cloth.

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