Analysis Of Price And Profit Changes Of Cotton Products In The First Quarter Of This Year

cotton

The price curve of cotton yarn and cotton cloth is generally weakly arched.

For example, the price of grade 328 cotton climbed from 19180 yuan / ton in early January to 19620 yuan / ton in late February, rising by 440 yuan / ton, or 2.3%.

During this period, the rise in cotton prices is mainly driven by centralized procurement of cotton mills stocking or replenishment of the Spring Festival before and after the Spring Festival holiday (January 23).

However, due to the lack of confidence in the cotton textile market, there is a limited amount of stocking and replenishment. Therefore, the price of cotton has not risen a lot during this period.

Moreover, with the full recovery of all links after the festival, the purchase of cotton has fallen into the negative way of using and buying.

Therefore, since the beginning of March 2012, the cotton market has continued to decline, and the price of the 328 grade cotton has been sliding slowly from 19600 yuan / ton in early March to 19500 yuan / ton at the end of March, or 0.5%.

Cotton yarn

The price rose from 25700 yuan / ton in early January to 26400 yuan / ton in late 2, rising by 700 yuan / ton, rising by 2.7%.

There are three main reasons for the increase in the price of this cotton yarn. One is the pushing up of the cost of raw materials. The two is that during the Spring Festival this year, the textile enterprises generally have an early leave, and the holiday is extended, so the total output of cotton yarn has been reduced, resulting in the increase of cotton yarn prices. Three, the downstream weaving factories have been stocking and replenishment before and after the Spring Festival, so that the price of cotton yarn has temporarily increased.

Then, in late February, as the cotton mill resumed production, the situation of oversupply of cotton yarn was re formed, so the price decline was inevitable. By the end of March, the price of C32S had slipped to 25900 yuan / ton, down by 500 yuan / ton, a decrease of 1.9%.

raw material

The cost and cotton yarn spreads hovered between 4800-5800 yuan / ton, which is basically the same as the profit level in the 4 quarter of last year. There was no sharp fluctuation of 9000 yuan / ton in the first 3 quarters of 2011, which was now as low as 2700 yuan / ton.

From the 1 quarter of 2012, the price difference rose faster after the Spring Festival, and it was close to 6000 yuan / ton in the first half of February. The driving force mainly came from the number of commencement of the cotton mill after the festival, and the start-up process of cotton yarn was slow. The total supply of cotton yarn was temporarily insufficient, and it was difficult to meet the needs of the downstream centralized purchase. So the cotton yarn price increased at a time faster than the cost of raw materials, making the profit margin of cotton yarn production increased in the first half of February.

However, as cotton mills started increasing, the output of cotton yarn gradually increased, and the profit space was gradually reduced.