Cotton Prices Fell Sharply, Textile Enterprises Encountered Difficulties

Today, at the beginning of the opening ceremony, Zheng cotton was once again unexpectedly sealed on the limit board. No one thought that the main contract of zhengmian had fallen to 10500 yuan / ton in the first quarter of 2020. The price of cotton is ups and downs, which will undoubtedly bring great harm to the cotton spinning industry. Faced with this "cold winter", textile enterprises are at a loss.

At present, the global epidemic is still spreading rapidly in large scale. According to the latest data released by WHO 22, the number of confirmed cases of new crown pneumonia outside China has risen to 210644 cases. With the increase in the number of confirmed cases, the panic among people in all countries is increasing. In order to cope with the epidemic, countries are adopting more stringent measures to control and control the city, which is bound to have a serious impact on the global economy.

At present, domestic cotton spinning enterprises are facing severe challenges in their production and operation. Henan textile enterprise procurement personnel said that the problem facing enterprises now is afraid to take orders, the two is the reduction of orders. If this continues, the enterprise will not last long. Before the holiday, enterprises purchased 2000 tons of cotton at a high price, and the purchase price was over 14000 yuan / ton. Now the price of zhengmian disk dropped to 10500 yuan / ton. Such a decline is unbearable for enterprises, so that the price of raw materials will continue to decline.

It is understood that textile enterprises are facing two major difficulties: shortage of funds and reduction of orders. After the Spring Festival, domestic outbreaks broke out and enterprises stopped production for a long time without any source of income. After the domestic epidemic was gradually controlled, outbreaks of foreign epidemic, export blocked and orders sharply reduced, which is even worse for the survival of enterprises.

According to customs statistics, 1-2 months in 2020, China exported 13 billion 772 million 500 thousand US dollars in textile yarn, fabrics and products, down 19.9% compared with the same period last year. In 2020 1-2, our export garments and accessories were 16 billion 62 million 300 thousand US dollars, down 20% compared to the same period last year. Before the outbreak of foreign epidemic, the export data of China's textile and clothing industry had dropped considerably. According to this estimate, export data will decline even more after March, and the reduction of demand will undoubtedly cause great pressure on domestic and foreign cotton prices to continue downward. Downstream textile enterprises believe that only when foreign epidemic situation inflection point, cotton prices can stabilize rebound, otherwise it will continue to explore the bottom.