Cotton Price Diving Process Most Hurt Cotton Spinning Industry Sad Days

High fever Cotton price Last year, a number of cotton spinning enterprises were also scalded.

"The money we made last year will be spitting out this year." Shandong, who does not want to be named Cotton spinning factory Of enterprise The Lord has poured bitter water recently.

According to the foregoing business owners, the processing industry generally has a stock of three months. cotton Cotton last year Price Rising every day, he was brave enough to stock up and made a lot of money, but cotton prices fell every day this year.

"From cotton farmers, traders, cotton textile enterprises to clothing terminal enterprises, the cotton spinning enterprises in the processing link is the biggest loss." The proprietor told the Morning Post reporter that the customers who bought the order were not buying or selling, but the cotton had gone up badly, the orders had been much more, the cotton had fallen sharply, and the customers' orders were reduced. "Some customers even have strong expectations of falling cotton prices, rather than defaulting." He said that his factory is basically in a state of discontinued production. Cotton can be thrown and thrown away. Everyone wants to wait and see before making plans.

The main reason for the sad days of cotton spinning industry this year is the trend of cotton price "roller coaster".

In 3-4 months of this year, domestic and foreign cotton prices flew down. In the 2 and a half months, cotton prices fell by nearly 10000 yuan per ton. Data show that domestic cotton prices (China Cotton 328 price index, the same below) in March this year, the 30 thousand yuan / ton high point, began to decline all the way, May 30th data show that domestic cotton prices have dropped to 24473 yuan.

Before the fall, cotton prices just went through a boom. Starting in September 2010, cotton prices started at 18 thousand yuan per ton, breaking through the 20 thousand and 30 thousand yuan pass, and reaching cotton prices by 31 thousand yuan per ton in November 11, 2010.

Li Peien, a partner in management consulting, said that the short-term factor of cotton price rise and fall mainly came from the capital market. "The surge last year was mainly caused by idle money speculation, and the recent strong US dollar, the decline of commodities and the shipment of international hot money were the main reasons for the price dive."

At the same time, Li Peien believes that the long-term factors that affect cotton prices are supply and demand. "Because of the expansion of planting area, China's cotton supply has increased by 8.2% over last year, while demand has increased by only 2%, which has also lowered cotton prices." "The sharp decline in cotton prices has led directly to the upside down of cotton yarn prices on the market." Ma Hanqing, deputy general manager of Nanjing Tong Yang Textile Co., Ltd.

According to Zhang Jianhong, deputy general manager of raw materials of Jiangsu Yulun branch, according to the current cotton price per ton 25000 yuan calculation, cotton yarn price to sell to 39500 yuan per ton to make money, "but now cotton yarn price is even less than 37000 yuan per ton is difficult to sell, the price upside up to more than 2000 yuan.", according to the current cotton price of 39500 yuan per ton.

Cotton prices have plummeted and cotton farmers in planting links have also been hurt. According to Ma Junkai, Deputy Secretary General of the cotton association of Dezhou, Shandong, nearly 40% of cotton farmers in many areas of Dezhou do not sell, and some villages have about 80% cotton reserves. Even some farmers have not sold a catty. Ma Junkai said, "now cotton price is only 8 yuan per kilogram, and last year when the high time came to 14 yuan per kilogram, even if 3 months ago, there were still 12 yuan per kilogram, so the farmers were unwilling to launch, but covering them is not the way."

In March this year, the national development and Reform Commission and other departments in order to protect the interests of cotton farmers, issued the "2011 cotton temporary storage and purchase plan", put forward from September 1, 2011 to March 31, 2012, in Xinjiang, Shandong and other 13 provinces and autonomous regions, with the standard minimum price of 19 thousand and 800 yuan per ton of cotton lint, the policy is considered to be the lowest protective price system of cotton.

"At present, this price can not fully mobilize the enthusiasm of cotton farmers to grow cotton." Tang Maoyong, deputy director of the textile and Fiber Inspection Institute in Liaocheng, Shandong, who often deals with cotton farmers and cotton enterprises, said that cotton cultivation is mainly time-consuming and time-consuming, and farmers can grow grain and go out to work.

Insiders estimate that with the increase in planting costs, the minimum purchase and storage price of 19 thousand and 800 yuan / ton can hardly make farmers earn money. However, the industry generally expects that 19 thousand and 800 yuan / ton should be a strong support point, and cotton prices will not fall below the 20 thousand yuan / ton mark.

"When the market falls, it is usually the time when the bottom is established. At present, the price of 24 thousand yuan / ton will not drop by 10%." Li Peien expects cotton prices to be set at the bottom of 20 thousand -2.5 yuan / tonne, and will remain stable in the third quarter.

In addition, Li Peien analyzed that the decline of cotton prices in the current round is good for terminal garment enterprises, because the price rise of raw materials has driven the price rise of terminal products last year, and short-term decline usually does not affect the adjustment of clothing prices, but the gross profit margin of enterprises is easier to raise. With the pressure of raw materials rising last year, the price increase of most brand enterprises is generally 10% to 20% this year.