Cotton Prices Plummeted 30% High Prices In Two Months, Hoarding Yarn Encountered Besieged City

Continue the headlines and continue our special report on the financial channel: focus on money flow. Today we turn our attention to the bulk. commodity market 。 To pay attention to a variety that is difficult to understand. cotton 。 From last year to now, cotton Price After soaring Plunge 。 (trend map) taking cotton in Zhengzhou for example, cotton prices slowly climbed from 15 thousand yuan per ton in January 2010 to 17 thousand yuan per ton in August. After September, cotton prices began to go crazy. Rise Within two months. skyrocketing To 33 thousand yuan per ton, the price almost doubled. By February this year, Cotton price set up record high It reaches 35 thousand yuan per ton.

However, the subsequent scene made many cotton traders in the market jump into panic. In March, cotton prices began to turn wild, and a ton of cotton fell down rapidly at a rate of 500 yuan for 3 days. In less than two months, cotton prices quickly dropped to 22 thousand yuan per ton and 10 thousand yuan per ton. Such a frenzied market has caused many cotton spinning enterprises in China to suffer hardships. Many cotton merchants who are also preparing to hoard goods are now being pushed into the "Besieged City" and are struggling to see the investigation sent by reporters from Guangdong and Zhejiang.

In Dalang town of Dongguan, Guangdong, there is a cotton spinning street famous for the Pearl River Delta. In the less than 1 kilometer long street, more than 600 cotton textile raw materials enterprises are located in the street. Last year cotton prices reached a historical high level. The cotton yarn raw materials in the street had exceeded 200 million tons, with a total value of nearly one billion yuan. When the reporters came here, they found that although the shops along the street were still open, it was hard to see the vehicles coming in and out. The thirty year old Mr. Wu was a businessman who came to Guangdong from Zhejiang for the gold rush. Because she had a cotton spinning enterprise in her hometown, Mr. Wu had rented a shop in Dalang town. In the warehouse upstairs, the reporter saw Mr. Wu's more than 60 tons of cotton spinning material which was hoarded last year. Wu, who originally wanted to sell the price at a high place, had never expected that the cotton price would rise and fall, and the more than 60 tons of raw materials had yet to find a sale.

　　 Mr. Wu, head of a textile wholesale enterprise in Guangdong

(Note: when did the goods enter? )

This was started in 2009.

Reporter: what was the price at that time? )

Then came in fifty-five thousand.

(Note: how much is the market now? )

If it's sold, nobody wants it.

(remember) did you buy more recently? )

No, I don't know where to buy it now. This year's market is so bad.

(remember: do you dare to buy? )

No progress.

Wu told reporters that the purchase price of these cotton yarn raw materials is fifty five one ton, the latest market price is forty-five thousand, or nearly 20%, but now, even if the price is sold at forty-five thousand, no one is willing to accept.

　　 Mr. Wu, head of a textile wholesale enterprise in Guangdong

When we really can't sell it here, we can't get moldy. When the waste is sold, we sell more than ten thousand tons, and sell tens of thousands of losses.

One reason for the sale of cotton yarn is that the price of cotton yarn is still falling. Another reason is that there are many hoarding households in Dalang town. The high price cotton yarn has become a hot potato.

Mr. Wu, head of a textile wholesale enterprise in Guangdong, should have eight thousand or nine thousand tons of cotton yarn in our town. This quantity is bound to exist, and it can not be sold. (reporter: can't you cut the price?) no one wants to sell the price, but no one sells it to you.

Cotton prices continued to rise in the first half of last year, and many cotton yarn business enterprises tasted the sweetness of hoarding cotton. When they invested a lot of money in hoarding cotton wars, the high priced inventory caused by the collapse of the price has already caused great losses to the owners. The reporter made a simple calculation of the average price per ton of cotton yarn last year. Up to now, the average loss of cotton yarn has reached 10 thousand yuan per ton. In Zhejiang, Guangdong, Jiangsu and other places, some large enterprises with capital accumulation are moving tens of thousands of tons, which means that direct losses will also exceed 100 million yuan.

Wei Tao, marketing director of global marketing group, will be listed next year when new cotton comes into the market in August. Next, it will have a greater impact on hoarding. So we will find that the whole hoarding cotton business is selling all over the place and trying to sell it all the time, so this power has also led to the further decline of cotton.