Cotton Prices Fell Sharply, Large Losses Of Textile Enterprises

Bad cotton prices began to fall.

Affected by the storage and storage of national cotton reserves, the cotton market that has been soaring for several months is experiencing a big drop.

Recently, according to reports in the cotton market, Wei Qiao group, as a weathervane of the industry, has recently cut down its third grade cotton and four grade cotton lint to the factory receiving price. This undoubtedly gives a higher dose of cotton price to a higher dose of medicine.

As a result, the Zhengzhou Mercantile Exchange (hereinafter referred to as the Zhengshang) has lost more than 20% of the price of cotton futures, and the spot cotton price has also fallen down by 10%.

Cotton prices have repeatedly hit new heights.

Because of the reduction in cotton production this year, cotton demand has been greatly increased.

The cotton storage data showed that the quality and output of cotton were negatively affected due to the low temperature and other weather conditions during the sowing period.

The total output of cotton is expected to be 6 million 360 thousand tons this year, down 5.5% from the previous year.

Insiders estimate that the annual demand for cotton in China is about 11 million tons, excluding the 1 million tons imported from abroad, and nearly 4 million tons of demand can not be met.

At this point, cotton prices rose to become the consensus of the industry.

From the first trading day of Zhengshang in August, the cotton main force (the most prosperous futures contract) was opened in May, at a price of 24930 yuan per ton, closing at 25755 yuan, or 0.74%, at the end of August 2nd.

Many people in the industry did not expect this to be a prelude to a crazy rise.

Since then, the cotton futures of Zheng Shang has gradually become the focus of attention of all parties.

In September cotton futures entered a rapid pull up period, and cotton went all the way to create another historical high point.

In November 10th, the main contract of cotton in May reached a record high price of 33720 yuan per ton.

The price has risen by 35% compared with the beginning of August.

Meanwhile, in order to stabilize cotton prices, the state departments concerned put in 1 million tons of cotton reserves from August 10th to October 22nd.

In October, the national development and Reform Commission and other departments made a special trip to Xinjiang to coordinate the Xinjiang cotton railway pport. It was determined that the loading capacity of the cotton should remain above 300 vehicles per day until the end of the year, an increase of 50 vehicles / days compared with the same period last year.

It seems that the futures market, which was originally stored as a "killer", could not be moved. The cotton auction price of the central storage cotton was higher and higher.

Giant price down cotton prices plummeted

While the industry is optimistic, a slump is about to begin.

As the weathervane of the industry, Wei Qiao group has lowered the price of three grade cotton and four grade cotton lint to the factory receiving price. Since November 11th, the number of single day reduction has exceeded 1000 yuan per ton.

After that, cotton prices plummeted all the way, and even expanded the board.

Until yesterday, the May contract closed at 25755 yuan per ton, down 23.6%.

Meanwhile, spot prices of standard cotton fell by 10%.

Figures released by authoritative departments also show that cotton prices are not optimistic.

China Cotton Association released 23 data show that, by the futures market crash and other factors, the Chinese cotton price index fell 474 yuan to 27881 yuan / ton on that day, compared with the high point of 31302 yuan / ton in November 11th, 10 days or so dropped 11%.

The possibility of overfall is not large.

"Everyone in the industry is not sure why cotton prices are so high this year."

A cotton importer in Qingdao told reporters that cotton prices are the most likely to rise in the middle of the year. Cotton prices are most likely to rise in September. When the new cotton comes into the market every year, it can ease the gap between supply and demand.

Wang Qianjin, an analyst with China's first textile network, said in an interview with the media that the cotton price in the early stage was higher than expected, and the factors of imbalance between supply and demand had been seriously enlarged.

At the same time, under the pressure of intensive multi measures, cotton prices began to fall sharply. But considering the fact that the demand for supply has not changed, the possibility of excessive cotton prices is not large.

Textile enterprises: lost 100 thousand yuan a week.

The price of cotton has dropped, and the price of cotton yarn has also dropped, but the textile enterprises have cried out.

Xu Hua is the head of Chongqing Xu Yang Textile Co., Ltd., which is one of hundreds of textile enterprises in Shapingba's Huilong Ba Textile City.

Yesterday, Xu Hua said: "the current price of 32 silk yarn is around 38 thousand yuan / ton, 40 silk yarn is 42 thousand yuan / ton, compared with a week ago, two kinds of yarn per ton dropped by five thousand or six thousand yuan."

Xu Hua said that last month, Ming knew that the price of cotton yarn was too high, but in order to maintain the operation of the factory, he still bought millions of yuan of cotton yarn. "Now the price is reduced, the cotton yarn has lost about 100 thousand yuan, and it is not an artificial cost."

Reporters learned that Xu Hua, like the loss of the boss is not a few.

Du Chao, head of the textile Co., Ltd., and Liao Qiang, Xindu textile company, told reporters yesterday that as long as the textile is still in operation.

Cotton prices decline, textile enterprises are ready to make a lot of purchases of raw materials? Xu Hua, Du Chao and so on, said that the current price of cotton yarn has dropped by about 10%, the highest price in October, cotton prices compared with the same period last year rose five or six percent, "the price is still very high compared with last year, the market trend is unknown, who dares to rush to start a large quantity of stock?" the reporter learned that textile enterprises are now in a wait-and-see state.

Fabric wholesalers: price stability of clothing fabrics

Yesterday, reporters visited several cloth wholesalers in Chaotianmen.

Two days ago, women's fabric prices also rose slightly, and no sign of price cuts was heard.

Yang Qiang, who made the wholesale cloth of lining cloth, said that the wholesale price of cloth had remained steady for half a month.

Several large garment manufacturers in the city also said that the price of cotton has not been pmitted to the garment production link.

Fabric wholesalers said that the price has not been pmitted to the cloth link, and now they are selling best cloth, and the quantity is small. Even if the price is loose, it will be easy to sell, and the loss will not be too great.