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    Cotton Enterprises Need To Pay Close Attention To Four Major Issues

    2011/11/22 12:01:00 7

    Concerns Of Cotton Companies

    At the 2011 Kam Bridge Textile Network Conference and textile situation seminar held recently at the Qingdao International Convention and Exhibition Center, the reporter interviewed Wei Linyan, a senior domestic expert on the cotton situation and basic situation this year.

    Wei Linyan said that this year the global cotton production is high, the contradiction between supply and demand is alleviated, and the domestic policy of "purchasing and storing" is under control. Cotton prices will remain stable throughout the whole year.

    But for textile enterprises, the situation is not optimistic.


    Since the beginning of this year, the quality of the textile industry has declined, and the textile production and operation are very difficult. The main factors are three: first, cost, two is the market, and the three is capital.

    Namely, the rising cost of raw materials and labor costs; the international economic situation is still low; the global economy has not yet gone out of the shadow of the financial crisis, the international market is weak, and the domestic market is hard to start; "tight monetary policy" has broken the whole industry chain, and economic and trade activities are almost paralyzed by financial difficulties.

    Production of textile enterprises

    atrophy

    It is directly against the cotton market this year.


    Wei Linyan believes that textile enterprises should pay close attention to the following issues.

    First, cotton prices this year.

    trend

    It is estimated that there will be a minimum price of 19800 yuan / ton for convoy, and cotton enterprises will actively store cotton. Therefore, the downward trend of cotton prices may not be large.

    Two, there are some concerns about the purchase and storage of new cotton.

    First of all, for the management level, collecting and storing is a good thing with three arrows. It protects the interests of cotton farmers, stabilise the cotton market and increase the national reserves.

    Secondly, it is clear that the purchase and storage conditions should be enabled in the plan, but it is not clear what conditions should be stopped.

    Textile enterprises may not be able to use cheap cotton, and can only use more than 19800 yuan per ton cotton.

    Thirdly, according to the lessons learned in 2008 and 2009, the textile enterprises should pay close attention to the progress of cotton purchasing and storage.

    Three, we must promptly purchase and strive for cotton import quotas.

    Qualified enterprises can purchase cotton properly in the near future, because the market is favorable.

    At the same time, we should strive for cotton import quotas as much as possible. Because of the global cotton harvest, most of the international cotton prices will run below or under the cotton price in our country.

    Four is to pay attention to new cotton planting next year.

    Although the purchase price of cotton is protected by "bottom price" this year, the purchase price is far lower than that of last year, and the purchase price is far from enough.

    Cotton grower

    As expected, the enthusiasm of cotton seed will decline and cotton planting area may decrease next year.

    therefore

    Spin

    Enterprises should pay close attention to developments and make arrangements to prevent production from fluctuating again.


     
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