Fu Shi Shares: 25000 Yuan / Ton Cotton Price Can Only Let The Textile Enterprises To Maintain Capital.

The rise and fall of cotton prices make many textile enterprises cry.

A senior manager of a textile listed company complained to the Securities Daily reporter: "no matter whether the cotton price rises or falls, it is not a good thing for textile enterprises."

From today's textile market, cotton prices have entered a state of disorder. No one can predict whether cotton prices will rise or fall at the next moment.

This has led to the fact that textile enterprises dare not buy goods or purchase goods only according to orders, and even the downstream enterprises are afraid to go down alone under orders.

It can be said that cotton prices rise, spinning enterprises complain, cotton prices fall, spinning enterprises also complain!

Cotton prices rise and fall

Spinning enterprises are mostly losing money.

From last year to now, cotton prices have staged a roller coaster.

Last May, the price of cotton was 17000 yuan / ton, and after 6 months, the price of cotton went up and up, the price of each ton exceeded 30 thousand yuan. By February this year, the cotton price set a record of 35000 yuan / ton.

Since April, domestic cotton prices have dropped rapidly on average at 500 yuan per ton per 3 days.

In two months, cotton prices fell back to 22000 yuan / ton, or nearly 30%.

Textile enterprises executives told reporters that last year, the sharp rise in cotton prices led to increased costs, the profits of textile enterprises were severely compressed, and many textile enterprises began to buy large quantities of raw materials.

But since the price of cotton has fallen sharply, the inventory of textile enterprises has also seen a sharp drop in prices. The more the stock is, the more losses it will have.

China's cotton industry inventory survey shows that yarn inventory increased by 13.1 days in April, the highest level since March 2009, and the inventory of inventory increased by 8.8 days, becoming the highest level since March 2010.

Some big businesses hoard up to 10000 tons, which means they will lose millions of dollars directly.

Wuhan cotton chief said, "3000 tons of cotton will lose 30 million yuan and a ton will lose 10 thousand."

According to the insiders, the purchase price of most enterprises' cotton lint is at more than 28 thousand yuan per ton, while the current market has dropped to 23 thousand.

According to the briefing, one cotton organizing staff recently went to Jiangsu and Zhejiang to do market research and found that downstream users such as weaving factories, printing and dyeing factories and some small garment enterprises had 60%~70% shutdowns, and the output of textile enterprises directly reduced 40%~60%.

A senior official of a textile listed company told reporters that in order to cope with the high and high cotton prices, the company was willing to set foot in cotton futures.

Cotton prices fluctuate unpredictable

Textile enterprises are short

In order to avoid inventory losses caused by price declines, many cotton textile enterprises are more cautious in purchasing cotton, and most of them take a wait-and-see attitude.

"The inventory of the company is not as long as it used to be. At present, the stock of the company is generally kept within 30 days," said a 002083 person executive told reporters.

This person briefed reporters: "the first quarter of the company used last year's low price cotton, nearly two months began to buy and sell now, the price difference before and after it is generally between 1 thousand and 2 thousand."

According to the latest analysis released by the website of China Cotton Association, there are many cotton stocks in the hands of most cotton traders.

With the current cotton prices stabilized, textile enterprises inventory bottomed out, cotton enterprises actively shipped, the two sides have increased turnover.

In addition, the lower reaches of the industry are pessimistic. It is expected that orders will improve in the second half of the year.

It is understood that because of the fluctuating cotton price and the possibility of falling, many textile enterprises are afraid to make a long list.

According to the people's office of Fu Tian, the "textile enterprises are mainly short orders, which has become a common phenomenon. Most of the customers' orders are within 3 months. Even foreign customers' orders are no exception."

Spinning hopes cotton prices down

25000 yuan / ton can only be guaranteed.

According to the provincial Cotton Association survey and analysis, cotton prices plummeted nearly 30%, imbalance between supply and demand is the main reason.

Recently, the decline in downstream demand has led to a decline in cotton prices.

First, foreign buyers turn textile orders to more cost advantage countries, resulting in the reduction of export orders, especially the long list reduction. A large number of small and medium-sized foreign trade export enterprises have to stop production, resulting in a sharp decline in cotton demand.

The two is the emergence of new materials for textile raw materials, such as viscose and polyester, which have advantages in cost performance and partly replace raw cotton, resulting in a relative reduction in demand for cotton this year.

In addition, the world's cotton output this year is estimated at 27 million 500 thousand tons, an increase of 10% over 25 million tons last year.

The increase in production and the decrease in demand further boosted the downward trend of prices.

For this reason, the above director of the shares of the office of the manager of the shares of the above said to reporters: "the current cotton price is still a little high, the average price is 25000 yuan / ton, but this price can also make the enterprise guaranteed only, if it can be low again."

China reserves cotton management company said that although the recent weather factors provide a little support for the cotton market, but before the textile production and marketing situation has not recovered significantly, the possibility of domestic cotton price vulnerable operation is larger.

Another industry insider said that the decline in cotton prices is expected to continue until August and September, due to insufficient domestic demand and declining export volume.

Because of the high cotton prices since last year, many garment enterprises have to rise in price under the pressure of cost.

Some consumers have suggested that the price of cotton has dropped sharply. So will the price of clothing be greatly reduced?

"The price of the current company's products is negotiated with customers at the time of placing orders," the company told reporters.

However, because the product from production to sales takes a certain time, the price of the product will lag behind.

At the same time, there are also clothing companies responsible person said, from cotton procurement to production, sales and other links, and its consumption for half a year.

Since the second half of this year is still using high priced cotton for winter clothing, such clothing will not be reduced.

In addition, the head of a clothing company also said: "the cost of some garments is not high enough. Considering the increase in labor costs and other factors, the price of such clothing is not affected by the rise and fall of cotton prices."