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Cotton Prices Plummeted 6000 Yuan Per Ton, Still No Buyers

2011/5/11 8:47:00 64

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Cotton price

After rushing back to the high of 30 thousand yuan / ton in March, the heel has not yet stabilized, and has been on the decline all the way.

Mr. Cao, a cotton trader in Pengze County of Jiangxi Province, is very anxious because the price of lint in his area has dropped to about 22 thousand yuan / ton, which has lost about 6000 yuan per ton, but still can not find buyers.

"All the lint processing plants around us are losing. Everyone is worried about continuing to fall.

lint

Sold, but basically no cotton mill to order, our county cotton trading market has been overloaded more than 10 thousand tons of lint, and every processing plant in the county has a lot of goods.

In the past year, this season is at the stage of cotton shortage. The basic supply of lint is in short supply, and the price is at the highest level in a year. This year is very unusual. The situation is far worse than the end of last year. It is estimated that many lint processing plants will not be able to support and collapse.

In an interview with reporters yesterday, Mr. Cao said that the lowest price per ton of lint per year was 11 yuan in December and 26 thousand and 400 yuan in the past year.

Since 2010, cotton price trend has made textile.

clothing

The company was "jumpy". The domestic 328 grade cotton spot rose all the way from 15000 yuan / ton early last year. In September, it accelerated to a higher level, almost daily, and hit a new high. In November 11th of last year, it plunged to 26 thousand yuan / ton after hitting the peak of 31235 yuan / ton. It began to pick up gradually in December and returned to the 30 thousand yuan / ton mark again in March this year.

Cotton price dived again, which is closely related to the shrinkage of downstream demand.

Order

Slowing down makes cotton prices drop sharply.

Mao Xiahua, director of the trade management department of Shanghai Pegasus import and Export Co., Ltd. just returned from the 109 Canton Fair. She was disappointed that there were very few buyers from Europe and America at this Canton Fair.

"We have brought a lot of new products to participate in the exhibition, but the price is too high for customers to accept," Mao Xiahua said. "Although the cotton price has dropped, it is still a big cut compared with 17 thousand ~1.8 yuan / ton in the same period last year.

In the second half of this year, there is great uncertainty in the trend of garment export market. We are not in a hurry to buy cotton yarn. We are still looking forward to it. We expect cotton prices to drop further. Now the cost pressures of garment enterprises are great, and they are afraid to take the wrong step. "

Contrary to the upstream cotton enterprises, the downstream textile and garment enterprises hope that the procurement cost of raw materials can continue to decline if the market is not prosperous.

Wang Qianjin, a senior analyst at the first textile network, told an interview with our reporter that at present, the stock of cotton yarn enterprises is generally large, and the purchase of cotton is decreasing, and the demand for downstream garments is also not strong. This is one of the main reasons that affect the decline of cotton prices this year.

This year the domestic market consumption of clothing has not changed much, but the demand for the international market has slowed down significantly. Last year, the number of export garments increased by 10%~15%, while the growth rate of export clothing in the first quarter of this year was less than 5%, and the second half of this year may continue to slow down.

At present, cotton prices have been callback, but the cost pressures of enterprises have not been lightened. Labor costs and RMB appreciation have prompted domestic garment enterprises to increase export quotas, which may lead to the pfer of part of international orders.

However, Wang Qian believes that 328 grade cotton down to 25 thousand yuan / ton will encounter great resistance.

"Overall, China's textile and apparel industry still has strong competitiveness in the world, and Southeast Asia and other regions are unable to undertake a large number of orders pfer. Therefore, a small number of orders pfer will not lead to negative growth in China's textile and garment exports this year.

In addition, although the price of international commodity prices is very strong, the international cotton price is still strong and its decline is relatively small. At present, domestic and foreign cotton prices are hanging upside down. At present, domestic cotton prices are generally lower than the international cotton price per ton 2000~3000 yuan, which means that the domestic cotton price decline has limited space.

Wang Qianjin said.

In view of the fluctuation of cotton prices, 8 ministries, including the national development and Reform Commission and the Ministry of agriculture, jointly released the "2011 cotton temporary storage plan" in March 30th this year, and decided to start policy storage in September 1, 2011 ~2012 March 31st, once the standard grade cotton prices were less than 19800 yuan per ton in a continuous 5 working days.

The cotton minimum price policy has been widely accepted by the industry that will help stabilize planting area, production and price.