Cotton Prices Fluctuate Sharply, Cotton Prices Downward Adjustment

Recently, cotton prices began to fluctuate sharply last week due to some news levels.

This week there is a downward trend in price adjustment, cotton spinning.

People are floating.

Price fluctuations, the first to bear in mind is Zheng cotton futures, last week for two consecutive days in a basic state of limit, entered this week, two consecutive working days to maintain a downward trend.

Yesterday, Zheng cotton main CF1701 contract closed at 14700 yuan / ton.

The spot market has also been affected.

On the 3 day, the Xinjiang cotton group quoted price of Xinjiang cotton in 2012/13 yuan 14500-15000 yuan / ton, compared with last week's quotation, it fell 200 yuan / ton; Xinjiang cotton 3128B grade quoted price was 15500-15800 yuan / ton in the new year, and the price was stable, but because some traders were anxious to ship the psychology, in the actual paction process, they could generally give the 200-300 yuan / ton profit margin.

The biggest impact was on real estate cotton. On the 3 day, the 3128C class hand picked cotton in Shandong area quoted 14500 yuan / ton, down 200 yuan / ton compared with yesterday, down 400 yuan / ton compared with last Friday.

"It is fair to say that the decline in cotton prices and the reduction of raw material costs of enterprises are good for enterprises."

A textile factory official said, but if the price fluctuates greatly, it will be very unfavorable for enterprises to organize production and sign bills.

"We still want cotton prices to be stable."

Another Shandong Dezhou textile enterprise official said that the overall situation of pure cotton yarn today can be summed up in four words, that is, "quantity reduction and price softness".

The reduction refers to the fact that the whole downstream market is waiting for the price of cotton yarn in the near future.

The official said that since the beginning of this week, some of the price of yarn has dropped.

On the 3 day, the price of the combed 32S of the factory was 20200 yuan / ton, down 200 yuan / ton yesterday.

According to the theory of enterprises, the price reduction is due to two factors: first, the downstream manufacturers of higher cotton prices have not been very receptive. In order to attract orders, price reduction is also prohibited by enterprises. Secondly, the prices of upstream raw materials are indeed falling, and raw materials have declined, which has also given enterprises a downward adjustment of the price of cotton yarn.

The person in charge of the enterprise said that the price of cotton is currently 14500 yuan / ton (grade 3128C real estate cotton), while the price of the combed 32S in Shandong market is 215000-22500 yuan / ton, basically on the profit and loss line.

It is also understood that due to factors such as upstream raw materials and finished product sales difficulties, recently, the mainland textile enterprises limited production and production enterprises increased.

3, a Jiangsu commercial factory feedback, the mainland textile enterprises have the following characteristics: one is a number of small and medium-sized enterprises to suspend production, the main reason is the cost upside down, orders are scarce, unprofitable.

In addition, the downstream clothing and grey fabric enterprises have a relatively heavy credit risk. Many spinning enterprises are beset with financial problems and unable to start normal work. Two, some enterprises abandon pure cotton yarn production and turn them into pure polyester or viscose fibers.