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    Cotton Prices Plummeted &Nbsp In March, But Clothing Was Hard To Cut Prices.

    2011/5/6 11:44:00 68

    Cotton Prices SlumpClothing Difficult To Reduce PricesInventory Pressure

    Since 2010, the price of skyrocketing cotton has again staged a roller coaster market. After standing at a historical high of 34870 yuan / ton in February this year, cotton prices began to "drop by a thousand li" since March, and now fall below 26000 yuan / ton, or more than 25%.

    Insiders pointed out that small and medium-sized textile enterprises in China limit production and suspend production, which greatly weakened demand. In short term, the cotton market wait-and-see atmosphere will still increase, and cotton prices will soon fall below 25000 yuan / ton.


    Insiders pointed out that last year

    Cotton price

    All the way up 70%, textile enterprises have chosen to "hoarding cotton", while some small and medium-sized clothing enterprises choose to stop when cotton prices skyrocket.

    Inventory pressure

    "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 declined because of the two consecutive month of falling cotton prices.

    "

    Raw material price

    Decline in the long run can reduce the cost of garment enterprises, but it 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 seven wolves (33.51, -0.08, -0.24%), Lining (column), and Li Lang have all gone up in price this year, rising 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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