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Cotton Prices Fell, Xinjiang Textile Enterprises Were Hurt &Nbsp; No Stockpile Business Strategy.

2010/7/23 14:09:00 50

In July 20th, although the spot price of cotton fell to 18297 yuan per ton, the cotton price in the face of high operation was quite different.

Textile enterprises

Watch the future market cautiously.

"The price of cotton lint at present is basically around 18500 yuan per ton, up 4000-5000 yuan per ton compared with the same period last year, but the increase in cotton yarn and cotton cloth is far from that."

Cao Xin, director of the plant of a state-owned cotton textile mill in Shihezi, said that the cotton yarn and cotton cloth in the factory was mainly sent to Jiangsu and Zhejiang provinces, and the average price of cotton yarn was about 33000 yuan per ton due to the rising price of raw materials, which was 5000 yuan higher than that of the same period last year. Cotton cloth was basically 6 yuan per metre, compared with the same period last year, compared with the same period last year, the price of cotton yarn rose by 1 yuan.

Cao Xin calculated an account. Compared with last year, the increase of raw cotton alone reached about 30%, while the increase of the product was less than 20%, coupled with the increase of pportation, labor and other costs, which were squeezing profit margins step by step.

Similarly, a textile enterprise located in Urumqi.

raw material

Zhao Yang, manager of cotton purchasing department, is also in a dilemma. "The purchase price is too high and the turnover period of production and sales is about two months. During this period, the market price risk is bigger. If the goods are not stocking, the production will be broken after the new cotton comes into the market."

Zhao Yang said cotton prices rose further.

enterprise

The risk of Xinjiang's lint supply is very tight. Basically, we must import goods from the mainland, so as to eliminate the cost increase caused by the rising price of lint. Compared with the textile enterprises in the mainland, Xinjiang still has pport costs for pporting cotton lint and pporting cotton yarn. This part of the cost is also self absorbed by enterprises.

As the cost increases further, the downstream customers do not buy it. Many customers begin to wait and see when the price rises.

In the interview of a number of textile enterprises, the rise in cotton prices is also due to the apparent lack of supply in the market as early as March. Many textile enterprises are trying to "grab raw materials", so the price is getting higher and higher.

For the late trend of cotton prices, a company official said, according to the law of value of market economy, the price of goods is affected by the supply and demand of the market, fluctuating around the value. When the commodity supply is less than the demand, the commodity price will rise. The specific increase will depend on the difference between supply and demand. After all, the fluctuation of price should be centered on value, and the price of raw material exceeds the value of the commodity itself.