Sun Weiting: Cotton Prices Skyrocketing And Plummeting Are Good For The Clothing Industry.

Cotton spinning made a tough year last year.

Lin Guofang, chairman of fuanna, said that cotton prices had gone up and cotton yarn had not been produced since last year's cotton boom.

Cotton yarn enterprises all the way to produce at full capacity, all the way hoarding cotton.

Last year cotton yarn business caught up with the bumper harvest of ten years.

This year is the most difficult one.

Sun Weiting said.

Sun Weiting said that this market is favorable to the market in the long run. It is the strategic direction of the industry and then "to make up", that is, to rely on extension and profit by speculation, and to make brand technology and painstakingly return.

"Despite the tragic situation, the social resources are too wasteful."

Sun Weiting said that this year there will be a good opportunity to M & A, before the acquisition of an enterprise to spend 100 million, and now can be taken at 30 million, industry concentration will further improve.

There is a specialized futures department in Huafu color spinning. Sun Weiting himself sees the cotton futures market inside and outside the company every day. "After this test, we all understand that in today's global integration, we must pay more attention to futures and more futures in the cotton spinning industry, and the way of hedging will be more radical in the future," Sun Weiting said.

Even in the context of sharp fluctuations in the raw material market, enterprises that have strong pricing power and strong financial strength can grow faster because of the successful completion of the price increase.

Huafu color spinning profit increased 154%, net profit growth in the first quarter of this year is still 33%.

Last year, fuanna increased its net profit by 48.37%, and its net profit grew by 63.25% in the first quarter of this year.

Fried cotton and war

Recently, domestic and foreign drought weather, let cotton all the way down market uncertainty.

Zheng cotton contract 1109 rebounded to 26230 yuan per ton on Tuesday.

The uncertainty of cotton's later period makes the cotton frying capital a bit eager.

The head of a textile enterprise said that at present we are still observing the market of cotton. If cotton is further lowered to the right price, we will buy it and sell it when we serve high.

An insider told reporters that the recent changes in weather have made cotton producers rekindle confidence in cotton.

As far as it is concerned, some of the cotton hoarding buyers in Xinjiang who are buying at 24 or 5 are now in no hurry to launch. They are still waiting for a turn in the market.

Sun Weiting said that no matter how the cotton market has changed, the purchase price of 1980 yuan per ton this year will play a decisive role in the stability of the cotton spinning industry, even though this policy is only one year.

For the home textiles and apparel industry, the sharp rise and fall of cotton prices is generally beneficial to them, because the price of the terminal products going up is hard to come down again.