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Market Bearish Cotton Prices Continue To Slack Downstream

2011/5/5 14:56:00 75

Market Cotton Price Cotton Market

Since March 3rd

Zheng cotton

Since the top down again, as of yesterday's close, the main 1109 contract has fallen 7620 yuan / ton, or more than 20%.

Judging from the supply situation of domestic cotton market, the supply sources are not very sufficient, especially the shortage of high-quality cotton resources.

Market analysts believe that the recent cotton prices continue to decline more because the focus of the market shifted to downstream consumption, and the current

Cotton market

Downstream consumption is beset by many problems, and it is hard to pick up in the short term.

Under the pressure of tightening policy, the current textile enterprises are generally short of funds and the raw material purchase intention is not strong.

First, the difficulty of enterprise loans increases, and business operations can not get sufficient financial support.

Two, the increase in financing costs is bigger, and the risk borne by enterprises is increasing.

Three, sales of finished products are sluggish, larger inventory and more capital.

In addition, the increase in labor costs and the fall in sales prices also hurt the enthusiasm of textile enterprises to increase the start-up rate.

At present, small and medium-sized textile enterprises in China limit production and stop production, which weakens the demand of cotton market.


It is noteworthy that the current domestic cotton quality generally deviate from imports.

Cotton price

After the decline, more enterprises chose imported cotton and the domestic cotton price center shifted downward.

In Hebei Nangong de Kai textile mill and Bailong textile factory and Shandong Xiajin County Huafang textile factory found that most of the raw materials purchased by the enterprise are cotton and cotton, and few domestic cotton is used in production, and only a small part of Xinjiang cotton.

According to the textile enterprises, the overall quality of domestic cotton is not good, the impurity and so on exceed the standard range. After the recent decline in import cotton prices, enterprises are more willing to use imported cotton, and the corresponding market demand for domestic cotton is not as strong as that in the early stage, and the average price of domestic cotton market tends to slide downward.


Zawa Hirohito, general manager of Shandong Industrial Development Co., Ltd., Cheung Kwok Keung, said that from the domestic cotton market inventory, Xinjiang cotton and the mainland cotton stocks are not large, but cotton prices are difficult to stop. The important reason is that the downstream business products are light and market watching atmosphere is strong.

According to reports, Xinjiang cotton spot quotation is more chaotic, the mainstream offer is 28000 - 29000 yuan / ton (public weight), the import of the United States cotton Shandong area quoted price is 27000 yuan / ton (net weight).


At present, the third phase of the 109th Canton Fair, which is dominated by textile, clothing, agricultural products and medical products, is coming to an end.

Judging from the turnover of the Canton Fair, the turnover of textile and clothing is not very ideal, and it also shows that the downstream demand of domestic cotton market is hard to improve.

It is understood that on the Canton Fair, buyers from Europe and the United States have been reduced. Meanwhile, consumers have already started pferring orders to Bangladesh, Vietnam, Romania, Morocco and other countries when the consumption has not yet fully recovered.


At the same time, the sudden acceleration of RMB appreciation has made a great impact on China's foreign trade.

Since April, the pace of RMB appreciation has increased significantly. This has caused many enterprises to hesitate when taking orders, and foreign buyers generally hold a wait-and-see attitude.

Cheung Kwok Keung said that because of the appreciation of the renminbi, many textile companies are afraid to take long orders, and only take part in short lists. Even this can not guarantee that they will not lose money in future delivery.


At present, the cotton planting in the mainland has basically finished the cotton planting. Compared with the end of the past rainy season, the sowing date has been postponed, mainly due to the low temperature weather.

From the cotton planting area in the inland cotton area, there is little change.

Although the state has formulated and promulgated the lowest cotton storage and storage price this year before planting cotton, but because of the time and cost of planting cotton, there is no reason to save grain and save more money than economic crops such as pepper and so on.

At present, there are still a lot of seed cotton in the hands of some farmers in Hebei and Shandong.

But because of the rising cost, farmers are not eager to sell at a low price, and the seed cotton purchase market is basically at a standstill.


Recently, prices of cotton yarn and other products have maintained a downward trend.

market

Sales are not optimistic.

Cotton purchase, processing, sales and downstream products sales are basically at a standstill. In the short term, the atmosphere of the cotton market will continue to increase. Some textile enterprises in charge believe that cotton prices will soon fall below 25000 yuan / ton.

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