Textile Terminal Demand Shrank, &Nbsp, Warming Up Needs To Ask "Economic Recovery".

Demand recovery is hard to expect in the short term. It will take time to buy and store the market.

Domestic monetary policy

Since October, the price difference between cotton and polyester has tended to be a historical average, but this does not bring about the improvement of lint demand.

Cotton and chemical fiber are facing the same problem, whether it is cloth or cotton yarn, polyester, production and marketing situation is not optimistic, polyester manufacturers and spinning mills start rate is very low, the demand for chemical fiber, lint is obviously weak.

The current weak demand for cotton in China is the root cause of the weakening of cotton prices. I have attributed the weak demand to four aspects: one is Europe and the United States.

Textile terminal demand atrophy

The shrinkage of textile terminal demand and the pfer of export orders are two important issues related to "economic growth" and "international division of labor" respectively.

Here we may explore the import volume of American cotton textiles in 1-9 2011.

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In order to divestiture the impact of price increase, the author adopted the standardized unit SME (Square Meter Equivilents).

As can be seen from the table, China, Pakistan, India and other countries occupy a large market share in the import of American cotton products.

But the same problem faced by the three countries is the sharp reduction in the total number of exports of cotton products to the United States in 1-9 months, down by 16.80%, 14.28% and 8.28%, respectively.

It is not difficult to find the reason from the table. In the 1-9 month, the US imported 14935.92 SME of cotton products from the world, down 11.18% from the same period last year.

This shows that the consumption of cotton textiles in the United States has been greatly reduced, and textile giants are having a hard time.

However, Bangladesh, Vietnam, Indonesia and other "new textile powers" have not significantly reduced the volume of exports of American cotton products, or even increased.

In fact, from the perspective of labor cost, textile industry policy and exchange rate, the above-mentioned "new textile powers" have obvious advantages in traditional textiles, and the competitive advantages of traditional textile giants in the international cotton textile market are rapidly losing.

On the 110th Canton Fair, European and American markets fell sharply, while buyers from Europe and the United States increased. However, the number of inquiries was higher, and the actual turnover decreased by 19% and 24% respectively.

From a larger perspective, the recovery of China's textile export orders is related to the economic recovery of important economies such as Europe and the United States.

In recent years, the Chinese government has obviously changed the formulation of "stabilizing prices" and "ensuring growth".

At the twenty-second Sino US Joint Commission on commerce and trade, Wang Qishan said that the current global economic situation is still grim, ensuring that economic recovery is an overriding task and an unbalanced recovery is better than a balanced recession.

In the wave of global economic recession and recovery, cotton textile industry is like a small boat in big waves.

Generally speaking, the current cotton market is hard to get more favorable themes, and the slight decline in lint prices will continue.

The recovery of demand is a good short-term hope. It is "the most recent straw saving". However, it is not long before the storage capacity is released.

Domestic monetary policy fine-tuning is expected to be obvious, but in the short term, the impact on cotton textile industry and cotton prices will be very limited.

When the demand for lint is restored depends on the export orders, and the textile export orders are obviously warmer, we need to ask "economic recovery".