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    Upstream Cotton Yarn Enterprises Are In A State Of Huge Inventory And Shortage Of Capital Chain.

    2011/5/13 15:15:00 94

    Stock Fund Of Cotton Yarn Enterprises

       Cotton prices rose sharply last year. Since the beginning of April, domestic cotton prices have fallen rapidly on average, 500 yuan / ton per three days.


    The rise and fall of raw material prices has prompted many textile enterprises in Zhejiang to replace cotton products with cotton blended products with relatively low cotton content such as tapewood and cotton. Fabric About 70% of the market now accounts for less than 50%. Mr. Chen, head of a textile enterprise in Shaoxing, said.


    In Shandong Wei Qiao cotton futures market, grade three in April 1st. lint The price per ton is 28000 yuan / ton, and the quotations in April 20th and 28th were 27500 yuan / ton and 25500 yuan / ton respectively. In May 5th, the price was reduced from 25000 yuan / ton to 24000 yuan / ton. In a month or so, the price of three ton cotton per ton dropped by 4000 yuan. Before the crazy rise period, the highest price of grade three lint reached 34000 yuan / ton.


    Cotton prices rose rapidly last year, and cotton yarn companies benefited. But with the decline of cotton prices, the upstream cotton yarn enterprises generally fall into a shortage of huge inventory and capital chain.


    Mr. Li, a large cotton mill in Dezhou, Shandong, said that cotton rose all the way last year. Raw material Nervous, many textile enterprises in Jiangsu and Zhejiang have orders when they come to order. For example, 40 of the following cotton yarn must reach 15 tons before signing, and 50 cotton yarn, 10 tons. Cotton has dropped sharply this year, and textile enterprises' purchasing intention has been further reduced. "This year there is hardly a list of more than 5 tons."


    Affected by the drop in cotton prices, some large cotton enterprises in Shandong began selling cotton yarns at low prices. The cotton yarn company, which Mr. Li is located, has been reducing cotton yarn price by 4000 yuan per ton since April 1st. The biggest local cotton yarn business in April 24th cut prices by 5000 yuan at a time.


    Mr. Cheng, a senior analyst at a professional website, said that many cotton yarn Companies in Shandong, Henan and Shaanxi had to shut down because of the sharp fluctuations in the market. "Small businesses with an annual output of less than 50 thousand spindles are almost closed. Zhejiang's textile enterprises are mostly made of chemical fiber yarn, polyester cotton and other fabrics, so the impact is relatively small.


    It may be noticed by careful readers that the clothes of pure cotton fabrics seem to be getting less and less these two years. In fact, when cotton prices rose all the way last year, cotton blended fabrics, chemical fiber fabrics and new fabrics with strong substitution were welcomed by garment enterprises and home textile enterprises.


    Zhu Ming, the head of a foreign trade company in Shanghai, said that a well-known Japanese clothing merchant who had been working together for the first two years purchased fabrics mainly from cotton and polyester blended products. Since last year, the summer clothing series of cotton fabrics (a man-made fiber, less chemical composition and cotton, cheaper than pure cotton yarn fabrics) accounted for over 70%.


    In addition to cotton, in China Light Textile City, this year, polyester cotton blended yarn is the main raw material of all kinds of tapeo cotton fabric, chiffon, Dongfeng yarn and other imitation silk fabrics, and polyester filament become the main force of summer women's clothing business.

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