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Where Is The Last Straw In Cotton City?

2011/7/27 15:48:00 20

Cotton Market Downturn Trend In Cotton City

The cotton market in July continued the downturn in June.

Market paction

It is extremely bleak. Price competition has become the current theme. Low selling cotton yarn, low purchase cotton and replenishment stock are the way for textile enterprises to survive.

Thinking about last year, cotton prices continued to "high fever", market participants expected to rise to thirty-eight thousand "sky high".

However, the current market has already made the anticipation of the previous stage come to naught.

In addition, before the market speculation, but in the current demand for large shrinkage, supply is relatively loose, the gap is also self destructive.

Cotton prices have experienced a roller coaster decline, which has fallen below twenty thousand from the price of thirty-two thousand in March. The current market participants are concerned about the 19800 yuan mark. The state's purchase or storage price will become the last straw for the injured cotton trader.

Cotton market is still hard to "ice breaking"

"The flower of the western garden has been exhausted, and the new moon is coming."

Nowadays, cotton is on the spot in China and foreign countries. Most people are not optimistic about the future market.

It is understood that the price of lint 3 in Handan, Hebei is 19600-19800 yuan / ton (pick up, net weight, the same below), has fallen to the national 19800 yuan / ton storage price near the price; weak 3 grade offer 19300 yuan / ton, 4 level offer 18500 yuan / ton.

market

Pessimism is strong.

A local 400 type enterprise has about 70 tons of grade 3 cotton. Due to the urgent withdrawal of funds, the price agreed recently with a textile enterprise in Shandong is 19700 yuan / ton (to factory price and full amount), and the loss is nearly 6000 yuan per ton.

Because of the heavy decline in cotton prices, yarn sales have turned to profit from the loss of pre sale yarn.

Therefore, most of the losses of spinning enterprises are stock yarn.

At present, because of the serious price of large textile enterprises, the situation of cotton enterprises is relatively weak.

As cotton sales deficit continues to increase, cotton enterprises lose confidence in the latter market is more serious.

Therefore, the pressure of "ice breaking" in the cotton market is still very high.

Demand is shrinking, and downstream stocks are high.

Since the beginning of this year,

Textile industry

The overall downturn led to a marked shrinkage in cotton demand and a sharp fall in cotton prices. Zheng cotton fell nearly 40% from 34000 yuan / ton, and the US cotton futures price was almost cut.

At present, the domestic cotton market is still in the doldrums, from raw materials to products, the upstream and downstream sales are serious, and the power of warming up is not enough.

Some cotton enterprises reflect that at this stage, market procurement is sluggish, and the atmosphere in the hot summer market is gloomy and threatening.

Relevant data show that domestic cotton sales progress this year is still slow, and downstream gauze stocks are also high.

The China cotton industry inventory survey report released by the national cotton market monitoring system showed that as of July 6th, the domestic yarn production and sales rate was 89.5%, the stock was 25 days, an increase of 16.7 days compared to the same period, the cloth production and sales rate was 84.6%, and the stock was 49.7 days, an increase of 20.1 days compared with the same period last year, the highest level since November 2009.

Outlook for future market:

Continue to shout cold cotton enterprises, spinning enterprises are now somewhat similar to wait for feeding, we believe that such a pain will remind us that save the entire cotton textile industry, rely on national policies, two rely on industry as soon as possible to pform, three by modern enterprise management mode as soon as possible.

For the current cotton market, the 19800 yuan national reserve price is an important juncture. As for the price up and down, it will depend on the policy expectation, the industrial situation and the dynamics of the funds inside the field.