In The Face Of The Sharp Rise In Cotton Prices, What Is The Impact On Domestic Textile Enterprises?

The near future

The rising price of futures and spot prices has really affected the "nerves" of cotton spinning enterprises.

In the face of the sharp rise in cotton prices, what is the case?

China Textile Association is very concerned about this, and has launched targeted telephone inquiries, hoping to hear the voice of home textile enterprises, so as to make judgments and seek countermeasures for the market trend in the coming period.

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Enterprises such as golden sun and other home textile enterprises have made their own analysis and judgement.

Cotton prices rose due to multiple factors caused by similar views of enterprises

Cotton prices in recent two months have continued to rise, reaching a high level of 16000 yuan / tonne since the downturn in cotton prices in March.

So what is the reason for the price increase?

According to the analysis of the interviewed enterprises, the rise of cotton price is caused by multiple factors.

First, the supply of cotton at home and abroad tends to be tight, and the country's reserves are insufficient, and the demand is relatively strong, resulting in the imbalance between supply and demand and even panic. Two, cotton production units are not willing to sell at low prices under the condition of no inventory pressure, a little "cover goods" means, "monks and porridge less" have prompted enterprises to increase the auction power; three, they do not exclude big capital entering the market, causing a "huge billows" and speculation.

The above analysis is the main reason for the rapid price inflation.

The impact of cotton prices on domestic textile enterprises is different from that of geometric enterprises.

Cotton prices are rising, and the market is "very noisy". Cotton spinning enterprises seem a bit "panic stricken".

How much impact does such a great movement have on home textile enterprises?

Some respondents thought that the cotton market was rather grim. If we did not take active and decisive measures, the difficulties would be aggravated.

In the short term, due to the gap between supply and demand and the shortage of enterprise inventory, enterprises are in "starvation".

Foreign trade as the main enterprise stressed that enterprises had already had many difficulties, such as difficulty in receiving orders, tight delivery period and competitive pressure. At present, the rise in cotton prices has further increased the difficulties and risks of enterprises, and will also have a negative impact on the subsequent acquisition and processing of new cotton.

Other respondents said that under the background of raw material inflation, the upstream and downstream enterprises will take conditional contract price to ease costs and make up for losses.

For now, the upstream and downstream channels of the home textile industry have been opened up. Although the increase will not be too large, the radiation level will not be too wide. However, in a period of time, some enterprises still have to bear the cost pressure.

Most of the respondents are optimistic, and think that the situation of each enterprise is not the same. There will always be such fluctuations in the market. It is very important to do well in market forecasting and preparation.

In terms of Nantong textile enterprises, some enterprises have already locked the price of grey cloth to the October of this year. Some enterprises usually have 2-3 months' cotton yarn stock. In addition, most enterprises have certain finished products inventory, while the growth of consumption demand is weak, and cotton prices have no room for continuous rise.

Some enterprises also predict that the spot price rise will not continue. The cotton price will reach the peak value and the fundamentals will not support the price inflation.

These views show that the fluctuation of cotton prices has little impact on most home textile enterprises, and there is no worry about the problem of "green leaves" before the arrival of new cotton.

The good news came out that the market was "cloudy and sunny."

Recently, with the news of the delayed delivery of cotton reserves, the rise in cotton prices has eased, but can the upward trend be stopped and stabilized?

According to the interviewed enterprises, a number of cotton enterprises have put forward constructive suggestions on the recent cotton prices. For example, the state should suspend the production of non textile production enterprises, prevent speculation to stabilize prices, extend the time of throwing cotton reserves and increase the quantity of inputs to ensure the normal production of enterprises, increase the supply of high-grade cotton, ensure the quality of export products, and enhance the competitiveness of the international market.

The fluctuation of the market and the opinions of all parties have aroused great concern from relevant departments, associations and enterprises.

The development and Reform Commission said in July 27th that it will extend the cotton rotation time to September 30th.

After the news came out, cotton prices dropped somewhat recently, and the cotton market showed "cloudy turn".

The enterprises surveyed said that as long as the national cotton reserves were put into operation one month later, the market supply of cotton would increase, which could basically link up with the new flower listing time, and the market tension would be eased. Cotton prices would remain relatively stable throughout.