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    Henan's Textile Industry Plunged Into "Cotton Robbery"

    2011/7/29 11:53:00 46

    Henan Textile Industry Orders

    Since July, Liang Bo has been cautious about purchasing cotton.


    Liang Bo is Henan The purchasing manager of a local cotton yarn enterprise in Xuchang has 4 years of experience. The number of cotton handled can be loaded with several train skins.


    In the past, he always managed to "make a move" to ensure enterprises. Order Profits. Recently, however, he was puzzled, and he failed in two successive attempts.


    "Cotton is only put into storage, and cotton prices plummeted." Liang Bo is a bit depressed. Every time he loses more than 5%, it almost leads to no profit.


    Liang Bo told reporters, all the way down the price, make the hand. cotton Become "hot potato", but also make cotton business day more sad, do not know when it is the size.


    Directly to the minimum "purchase and storage price"


    Data from the Zhengzhou mercantile exchange show that in July 24th, the price of zhengmian CF1201 closed at 21480 yuan / ton, down 105 yuan compared with the previous trading day. The price of Zheng Mian CF1109 was 21150 yuan / ton, which also dropped by 110 yuan compared with the previous day.


    COFCO futures researcher cotton Wu Ju told reporters that cotton prices experienced high volatility in the beginning of the year, cotton futures prices began to decline. In the past month, there has been a trend of falling again and again. As of now, the price has fallen by 10000 yuan / ton, or more than 30%.


    Cotton prices in the spot market are also falling. In the case of Henan market, cotton prices in mid July were maintained at around 24000 yuan / ton, but they just dropped to 2000 yuan in late March. The market quotation in some areas has dropped to 21000 yuan / ton. In Kaifeng Weishi County, its main trading body is four grade lint, and its price is only about 19700 yuan / ton.


    A cotton grower in Zhoukou told reporters on the phone that cotton prices have been falling since the Spring Festival. Although there is a short-term pullback, it is a pity that not all of them are sold at the current price of 2 yuan / kg, which is not enough cost.


    "The current price of cotton has been directly pushing the price of cotton temporary purchase and storage in 2011-2012." Zhao Zhonghua, the head of Mian cotton workshop, told reporters that if the market price of cotton goes further down, it is not impossible to break the price of temporary storage.


    It is understood that in March 2011, the national development and Reform Commission and other eight departments jointly issued the "2011 cotton temporary purchase and storage plan", stipulates that the 2011-2012 cotton temporary purchase and storage price is, the standard grade lint to the warehouse price 19800 yuan per ton, other grades of lint temporary storage and storage price according to 3% grade difference, 1% length difference calculation.


    At the time of the takeover plan, the domestic cotton market price is at a high and volatile stage, maintaining around 28000 yuan / ton, and now it is already a double day.


    According to Wu Ju analysis, the price of cotton fell sharply in this round. There are international factors. For example, the cotton price in India is sluggish, and the decline of cotton prices in Pakistan has deepened, which has a certain impact on the domestic cotton price trend.


    Wei Yong, Deputy Secretary General of the Henan Cotton Association, believes that the current fall in cotton prices also has a stimulating factor in the domestic cotton production this year, but this is not enough to lead to a "drop in the drain" trend.


    A report from the national cotton market monitoring system, which was built by China cotton reserve management corporation, shows that cotton production is expected to reach 7 million 400 thousand tons in 2011, an increase of 18.6% over last year. Meanwhile, the US Department of Agriculture said in its July report that China's cotton production is expected to exceed 7 million 190 thousand tons this year.


    Cotton enterprises should be cautious


    It is reasonable to say that cotton prices have gone down again and again, and sentimentality should be cotton farmers. It is a pleasure for cotton companies to reduce production costs. But strangely enough, no enterprise can laugh, and a strong wait-and-see atmosphere almost suffocated the industry.


    "Many cotton yarn enterprises in Henan have taken the initiative to limit production and stop production." Wei Yong told reporters that during the high price concussion of cotton prices in March and April, it was trapped in the financial pressure brought by inventory. Many enterprises reduced production lines, but after more and more cotton prices were weakened, more cotton yarn enterprises joined the lineup of production restriction and production reduction.


    For the current feeling, a cotton yarn boss in Huaxian, Anyang, said, "no production is sentimental, but production is pain."


    It turned out that cotton prices fell day by day. For cotton mills that made cotton into cotton yarn and sold to takeaway, they had little say in the downstream textile enterprises and clothing enterprises, and the latter also had a wait-and-see attitude. They did not want to see their products sold on the market lose their price competitiveness.


    It is understood that the "price drop, less turnover" has become the three word market of the recent cotton market. Textile mills have procurement, because there are orders and profits, but the amount of procurement is small, a small car, a small car, the price pressure is lower, cotton enterprises want to bargain, spinning enterprises on high posture, but can only sell at a price.


    Speaking of the current situation of the cotton market, Wei Gangmin, general manager of Tongzhou cotton industry, said that this year's cotton broke the heart of the enterprises. First, it was ups and downs, and then it failed. It continued to weaken, which was very easy to cause obstruction for the slow cotton industry chain.


    This situation continues to ferment the result is forced cotton enterprises in the cotton purchase market can not have too many big moves. In fact, although cotton prices have been falling back and forth, they still have no market price. As for how long this trend will last, many cotton enterprises are shaking their heads.


    In this regard, Zhao Zhonghua of Mian Mian studio said that this is very unfavorable to Henan. Although Henan is the second largest textile Province, it can be attributed to the fact that small and medium-sized textile enterprises are more frequent. The long time industry slump will accelerate the industry's rapid reshuffle, which will bring some opportunities for Henan's leading cotton enterprises to integrate the market.


    For the post market, the industry generally believed that short-term cotton spot prices continue to weaken, but it does not mean that the "collapse of the cotton market". With the rising cost, supply and demand gap and the lowest purchase price of cotton 19800 yuan / ton, the long-term trend of cotton prices is still "step by step", and cotton prices may still be in a "vulnerable" state until the adverse effects have not yet completely subsided.

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