Supply And Demand Double Pressure Cotton Price &Nbsp; Cotton Market Pressure.
Since last week,
Cotton market at home and abroad
Under the influence of news factors, the fluctuation intensified.
ICE cotton first hit and then fell, and cotton prices in domestic Zhengzhou fell to 20240 in recent months.
Cotton market shrouded in haze, and market worries increased sharply.
India cotton export ban was sealed.
The change of India's cotton export policy reflects the contention of India's domestic textile enterprises for their own competitiveness and resource possession and the competition between the cotton growers and cotton processing enterprises.
The abolition of the ban on printing cotton exports on the one hand has increased the downward pressure on the already weak international cotton prices. On the other hand, it has also increased the pressure on the domestic cotton market, which has been expanding continuously in recent years. The stable situation of the initial establishment of domestic cotton prices may be broken.
Our country
Textile and clothing
Exports declined significantly.
Affected by the sharp drop in external market demand, China's textile and garment export enterprises have reduced external orders, increased costs, made light profits and raised financing difficulties. Production and operation have encountered difficulties, and enterprises can only look for opportunities in the domestic market.
For more than ten years, the textile and garment export industry, which is mainly dependent on the external demand market and profitable, needs to complete the pformation of profit mode and profit channel in a short time.
Global cotton supply has become loose.
The US Department of agriculture's March report data has shown to the market the supply of global and Chinese cotton markets in 11/12, and the global cotton consumption ratio has created a new high over the years.
In terms of domestic cotton supply, although the high-grade cotton in the market has been reduced due to the purchase and storage of the state, the purchase and storage will eventually have to be released.
In addition, the domestic output of cotton increased this year, and the import growth rate did not decrease. The domestic cotton supply environment was significantly different from previous years.
Domestic textile enterprises continue to deviate from production.
It can be said that the prices of raw materials are high, demand for foreign goods is weakened, domestic demand growth is declining, manpower costs are rising, financing is difficult, financing is expensive, and product brands are not outstanding.
To sum up, at present
Cotton market
The overall situation is abundant supply and insufficient demand.
The purchase and storage temporarily support the domestic cotton price, but once the end of March is closed, the new storage will not be opened. In the 4-9 month policy period, the domestic cotton market will lose support, and the pressure on cotton prices will be greater.
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