Low Price Of Cotton Stock Market And Drag On The Sale Of Terminal Clothing Industry

May is the peak season for selling cotton cloth market.

As a raw material for production of human cotton cloth, it should also be at a brilliant moment of market sales.

But now we clearly feel that the sales of the cotton yarn market is mediocre, and the manufacturer's capital preservation is better.

What is the reason why people's cotton yarn market is not prosperous? Let's take a closer look at the following.

Weak terminal demand, cautious procurement downstream

Since the beginning of this year, the textile and garment industry has been in a state of low temperature.

May people

Although it is still in the peak season of sales, the actual market situation is still decreasing compared with the same period in previous years.

This is mainly due to the overall weakness of China's domestic economic situation this year, but the demand for clothing has not decreased, but the purchasing power has been reduced, so the terminal clothing market is slightly weaker.

As the main raw material of summer wear, cotton cloth is the main selling season in May, but as far as the present situation is concerned, the consumption of cotton cloth has also been reduced due to the decrease in exports, thus reducing the demand for raw material cotton yarn.

At the same time, the garment industry will be pferred to autumn production stage in June.

The demand for cotton cloth in autumn clothing will be greatly reduced, and the consumption of cotton cloth will gradually decline.

In view of this, the human cotton yarn market is fundamentally lacking in support. If there are no other positive factors to stimulate in the short term, there will be no hope for the market to recover.

The raw viscose staple fiber continues to fall, and the business is expected to be more pessimistic in the future.

The market climate of raw viscose staple fiber has been weakening in recent years, and the quoted prices of mainstream manufacturers have been dropping slightly.

At the same time, because of insufficient demand and less market sales, the overall industry inventory has shown signs of growth, but it is still within the scope of affordability.

Market prices of raw viscose staple fiber have been lowered.

On the one hand, it reduces the production cost of enterprises, and allows the cotton yarn enterprises to have more profit margins, thus making use of price advantage to occupy more market share in market sales.

On the other hand, the cost of raw materials has declined and the cost supporting role of the cotton yarn market has weakened.

While losing support, enterprises are also squeezed by price from the terminal market.

Under the influence of bad factors, the survival space of enterprises has been shrinking. Some of the manufacturers in the market have been unable to withstand the pressure and shut down the market. There is no clear explanation for the restart time.

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The cotton warehouse Association of China Cotton Association has counted 125 warehousing units. As of the end of April 2012, the total turnover of commodity cotton turnover was 1 million 330 thousand tons (including 754 thousand tons in the inland library and 576 thousand tons in the Xinjiang Library), an increase of 8 thousand tons in the chain ratio, an increase of 246 thousand tons compared with the same period last year.

Accordingly, the total inventory of cotton turnover in the whole country is about 1 million 549 thousand tons, an increase of 10 thousand tons from the previous month.

From the above data, we can see that China's cotton inventory is too large this year, which has dragged down the price of cotton market sharply.

As the most original raw material of textile industry, cotton price fluctuation will seriously affect the market price of textile industry.

This cotton is affected by high inventory, and the market price is dropping obviously.

The decline of cotton prices is supposed to be good for textile enterprises, which will help reduce their production costs. But nowadays, lower cotton prices bring greater risks. Some foreign businessmen use this as an excuse to lower prices, and the export of textile fabrics is much worse than before.

China's textile industry has a great dependence on exports. If exports decrease, it will bring great impact on China's garment industry.

Therefore, businesses have to accept the requirements of foreign businessmen to reduce prices.

As the price of clothing industry falls, the cost pressure they bear is more obvious.

In order to pass on this pressure, they can only improve their profit margins by continuously reducing the price of raw materials.

In this environment, the human cotton yarn market is also hard to avoid, and can only be integrated into the price reduction and delivery.

According to the current situation, theoretically, the peak season of the cotton yarn market is not over yet, and the market is better.

Recently, people's cotton yarn manufacturers generally reflected that the inventory level was low in recent years, and the total amount of orders was not as good as the previous level, but there was no backlog.

The only drawback is that the shipment price is far below the same level, and some of the products are close to the production cost line.

According to a person familiar with the situation, some of the cotton yarn manufacturers are selling goods at low prices in order to maintain market share and look forward to having a place in the future development of the cotton yarn market.

But in the current situation, the cotton yarn season will be over, and the off-season will make the prospect of cotton yarn enterprises more optimistic.