How Does Cotton Textile Industry Deal With "Resilient" Cotton?

Why did cotton go up and down in the past year?

Hot money intervention, crazy "fried" cotton.

Futures funds have sped up the rapid rise of cotton futures and continued to the spot market.

The surrounding agricultural products in 2010 were all on the rise, and cotton was relatively stable at that time, which became the reason for speculation. It gave the space for the funds to intervene. The excessive expansion of late capital caused people to worry about the future price. Panic caused a lot of dumping and also affected the spot market.

In addition, in the spot market, speculators add a large amount of funds to speculation cotton, which has led to a surge of inflation.

In general, cotton is so elastic that the main reason is the "hot" fire.

Cotton output and weather changes.

Abnormal weather has a great impact on the middle and lower reaches of the Yangtze River and the the Yellow River River Basin, which not only affects the output, but also affects the picking and selling.

On the international side, bad weather conditions also led to the reduction of export quotas in major cotton producing countries.

This aggravates the fluctuation of cotton prices.

Enthusiasm for planting cotton.

Farmers' planting cotton is nothing more than getting more income. The year before year, because of the crazy speculation, the cotton prices rose as a rocket, and farmers' enthusiasm for planting cotton increased. Cotton planting in the next year resulted in a change in the structure of supply and demand. But once the idle money was left, panic caused cotton farmers to sell large quantities to lower cotton prices.

Cotton farmers' enthusiasm for planting cotton has been reduced after the setbacks, and cotton production has declined and prices have plummeted.

Cotton mutation, cotton textile industry's fatal blow

The stability of cotton prices is the key to the profitability of cotton textile industry.

Take precautions against it and take the initiative to deal with it.

Careful storage of cotton, short-term operation to ensure poor profit.

I believe that regardless of the cotton price rise or fall, cotton companies must be low inventories, not blindly hoarding goods.

It is understood that reducing raw material inventory is a way for most enterprises to avoid risks.

As long as there is a guarantee to meet the production inventory and reduce inventories to a low level, even sudden losses and losses are not enough to cause great losses.

Although hoarding may maximize profits, the risk of increasing fixed profits can not be guaranteed.

Therefore, in a sudden situation, it is the key to shorten the time limit for processing and production, to strengthen the safety of funds, and to ensure the profit difference.

Minimize the inefficient labor force.

In improving labor productivity, enterprises often focus on technological innovation breakthrough, ignoring the labor force behind and effective management methods.

With the increase of labor cost per year, cotton textile enterprises are hard to recruit, and the situation that they can not keep up with them is puzzling the normal production of enterprises.

To this end, cotton spinning enterprises should improve management methods, make the process simple and efficient, and reduce the ineffective labor caused by unreasonable processes.

So that workers in the enterprise can be arranged reasonably, reduce the waste of labor and improve the competitiveness of enterprises.

In addition, it is inappropriate to rely on endless price competition. Improving product quality and added value is the way out.

Enterprises should increase investment in R & D and product innovation, improve the renewal speed of product styles, and adopt active product launch methods, and gradually open up domestic and foreign markets.

To sum up, whether the cotton prices are going up or falling, or the profits and losses of cotton textile enterprises, the invisible "hand" of the market is under control.

Therefore, to fully understand the dynamics of the market and cater to the market's preferences, and do a good job of every precaution is the key issue for cotton textile enterprises in the future.