In 2014/2015, Cotton Traders Were Badly Hurt To Buy Money

At present, although more cotton enterprises in the mainland tend to enter Xinjiang to carry out cotton business, they are often deterred when they know the specific circumstances.

It is understood that the current cost of Xinjiang cotton processing plant bag factory has decreased significantly compared with last year, in previous years, 2 million - 3 million of the cost of the factory has dropped to 500 thousand - 700 thousand.

This also reflects cotton merchants' more rational attitude towards the market.

Overall, in the new cotton market in 2015/2016,

Tight and tight funds are expected to restrict the space of cotton prices.

At the beginning of 2015/2016's new cotton market in the year of 7, the purchase price of domestic seed cotton was around $16200 / kg, and the cost of processing cotton lint was 16200 yuan / ton.

Cotton prices continued to oscillate during the fall. Although there were policies to stabilize the market, cotton producers generally had a processing cost of more than 14000 yuan / ton.

By the end of 2014/2015, the price of Zheng cotton fell to around 12500 yuan / ton, and cotton traders generally suffered losses from buying and selling upside down.

According to China

Information network statistics, as of the end of July, domestic cotton business inventories of 1 million 420 thousand tons, compared with the same period last year, the data is only 550 thousand tons, business inventories increased by nearly 870 thousand tons.

There are still more at the end of the year.

Unsold, on the one hand, means that the new cotton market is not short of cotton before listing; on the other hand, some enterprises may not be able to return bank loans on time.

Although some enterprises have pledged their capital contributions through pledge, they have also made loans to the Agricultural Development Bank, but it is hard to avoid huge losses in their annual operations.

At present, Xinjiang cotton accounts for more than 60% of the total cotton output in China. Most of the enterprises in the territory rely on agricultural development bank loans to buy seed cotton, and there is no such abundant financing channels for mainland enterprises.

In the Xinjiang area, the overall cotton processing capacity is surplus. Whenever buying, we rush to buy Cotton with better quality. Many enterprises have to increase their prices and rush to harvest.