Cotton Prices Plummeted And Cotton Producers Lost 20%&Nbsp; There Was Still No Buyers For Meat Cuts.

"All the lint processing factories around are losing. Everyone is worried about falling down and rushing to put on the lint."

Since 2010, the trend of cotton prices has made the textile and garment enterprises "panic". The domestic 328 grade cotton spot has been rising all the way from 15000 yuan / ton in early 2010, and accelerated in September. It rose almost daily, and hit a new high almost every day. In November 11, 2010, it plunged to 26 thousand yuan / ton after hitting the peak of 31235 yuan / ton. In November 11, 2010, it began to pick up again. In March 2011, 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. "Despite the fall in cotton prices, it is still a big cut compared with the same period of 17 thousand ~1.8 million yuan / ton in 2010.

In the second half of 2011, the trend of garment export market is very uncertain. 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 not prosperous. This is one of the main reasons that affect the domestic cotton price decline in 2011.

In 2011, the consumption of clothing in the domestic market has not changed much for the time being, but the demand for the international market has slowed down significantly. In 2010, the number of export garments increased by about 10%~15%, while the growth rate of export garments in the first quarter of 2011 was less than 5%, and the second half of the 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, the competitiveness of Chinese textile and apparel is still strong in the world, and Southeast Asia and other regions can not undertake a large number of orders pfer. Therefore, a small amount of order pfer will not lead to the negative growth of China's textile and garment exports in 2011.

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 response to the fluctuation of cotton prices, 8 ministries, including the national development and Reform Commission and the Ministry of agriculture, jointly issued the "2011 cotton temporary purchase and storage plan" in March 30, 2011. It was decided that in September 1, 2011 ~2012, March 31st, once the standard grade lint price was lower than 19800 yuan / ton for 5 consecutive working days, it would initiate policy acquisition and storage.

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