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Cotton price volatility What are textile enterprises

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Cotton price volatility What are textile enterprises

  • Categories:Industry News
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  • Time of issue:2011-07-20 12:30
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Cotton price volatility What are textile enterprises

Ribbon webex since September last year, cotton after mung beans, garlic, apple, another to be "crazy" of agricultural products.Cotton boom collapsed, the cotton, cotton traders on the cotton industry chain, FangQi "struggle" in the cotton.Textile enterprises as a whole are in trouble, many enterprises limit production, production, as the degree of difficulty during the financial crisis in 2008.Association of cotton on the present conditions of the textile enterprises.

Cotton prices on "roller coaster"

2010 annual cotton ups and downs, record highs, go up, the heart fall palpitate.Seed cotton purchase price of 8.40 yuan/kg from mid-september quickly soared to early November 14.40 yuan/kg, cotton prices rose from 18300 yuan/ton to 32000 yuan/ton, up 70% in two months or so, the historical highest level, to almost one day a price.On November 11, cotton prices fell sharply, to the end of November seed cotton purchase price dropped to 10.60 yuan/kg, lint dropped to 26000 yuan/ton.Then slowly rising to seed cotton rose to 12.00 yuan/kg before the Spring Festival, lint raised to 28000 yuan/tons.After the Spring Festival and rapidly rising, mid to late February seed cotton rose to 12.60 yuan/kg, cotton rose to 31000 yuan/tons.Beginning in early march, ginned cotton, seed cotton prices continue to fall, to early July cotton prices have dropped to 22500 yuan/tons, level 4 seed cotton purchase price is lower than 8.60 yuan/kg, close to the annual minimum price.Basic end after the usual "51" seed cotton purchase, because the cotton price ups and downs, 2010 cotton farmers has been on the sidelines, sell progress is slow.According to the survey, by the end of June the city farmers home storage quantity of cotton at about 15%, xiajin stock quantity of cotton at about 25%, one thousand jins of farmers at home not to sell, can only wait until September to sell a piece of the crop.

Cotton prices the main reason for the ups and downs: one is the 2010 national cotton production, the gap is bigger, under some hot money hype, cotton prices to record highs, high cotton prices overall, prices are rational regression.Second, the downstream industry such as textile and clothing to the high prices is difficult to digest, absorb, led to the current cotton sales is very difficult and reversed transmission price of yarn, cotton prices tumbled.

Difficult to adapt to the ups and downs, FangQi is injured

Dezhou city is one of the important apply ChanMian, as well as the market, is also the market cotton.The city has 415 textile enterprises above designated size, the cotton spinning enterprises in 247, the scale of production 5 million ingot, 1/7, 1/20 of the national capacity to shandong province.Since early march, cotton prices fell quickly, cotton prices continued sharp drop in 32 of pure cotton yarn has been from the beginning of March 40000 yuan/ton dropped to below 30000 yuan/ton, in early July 4 months fell 10000 yuan per ton, FangQi widespread losses.Cotton prices "roller coaster" ups and downs, cotton, cotton, FangQi injury not light.Rised cotton farmers, on the sidelines, sell progress slowed significantly;Cotton acquisition processing enterprises dare not to open to buy, receive and stopping, the current large inventories of loss;FangQi inventories, sales difficult, difficult to maintain normal operation.Yarn price rises, less FangQi orders, yarn price is down, the downstream wait-and-see sentiment strong, procurement is not positive, serious cotton yarn unsalable, a huge increase in inventory.At the end of June 70% of the city's small and medium-sized FangQi production, limit production, the insufficiency of some large FangQi starts.Now FangQi situation is difficult than the 2008 financial crisis.Financial crisis in 2008, the exchange rate and prices are stable, the cost can be expected, prices under control.Since last year, labor costs rise, prices soared slump, FangQi not long single, single, only some small short single, single, can't normal arrange production.

Under these difficult circumstances, textile enterprises way out in where?The personage inside course of study thinks, textile enterprises should be taken to reduce inventory, improve product quality, use of new fiber and other measures to cope with the fluctuations in prices.

Dongguan Huataiji Jacquard Ribbon Co., Ltd

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