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    Cotton Prices Plummeted Cotton Losses 20% Meat Shipments Still No Buyers

    2011/5/11 17:04:00 74

    Cotton Price Shipper Shipments

    Cotton price has been rushing to a high level of 30 thousand yuan / ton in March this year, and the heel has not yet stood firm.

    Mr. Cao, a cotton merchant in Pengze County of Jiangxi Province, is very anxious because his area is very anxious.

    lint

    The selling price dropped to about 22 thousand yuan / ton, about 6000 yuan per ton, but still could not find buyers.


    "All the lint processing plants around us are losing. Everyone is worried about falling down and rushing to sell the lint on hand. But there is basically no cotton mill to order. Our cotton trading market in the county has overloaded more than 10 thousand tons of lint, and every processing plant in the county has a lot of goods on hand.


    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.

    Cao told yesterday's First Financial Daily reporter 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

    The trend has made textile and garment enterprises "panic". The domestic 328 grade cotton spot has been rising all the way from 15000 yuan / ton at the beginning of 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, and gradually recovered from December. After March this year, it returned to 30 thousand yuan / ton mark again and dropped to 27 thousand yuan / ton.


    Cotton price dived again, which is closely related to the shrinkage of downstream demand. At present, clothing orders are slowing down, so that cotton prices will 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 market will not flourish.

    Raw material purchase

    Costs can continue to decline.

    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.

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