Cotton Prices Soar, Textile Enterprises Shoulder Pressure Alone

According to reports, the Zhengzhou cotton 1701 contract in the futures market has risen more than 60% this year, and the spot price of the global cotton is rising.

Investment adviser Ren Liang believes that, first of all, due to weather reasons, the larger cotton producing countries in the world are cutting production, and the planting area of cotton in China and the United States is decreasing year by year.

Apart from this great environmental factor, we found that this year's cotton prices began to rise before the rise of cotton reserves and entered a period of rapid rise after the launch of cotton reserves.

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The cotton textile industry association's investigation and research situation shows that, in May, the cotton textile enterprise's management condition is getting more and more serious, the production continues to slide, and enterprises continue to stop production.

Reporters also conducted an investigation to understand the cause of this strange phenomenon from many textile enterprises and insiders.

"Now there are some difficulties in using cotton in our enterprises."

The difficulty raised by reporters from a Hubei textile company told reporters that in spite of the surge in cotton prices this year, there are actually more.

There is difficulty in using cotton.

A few days ago, nearly 150 cotton textile enterprises in Hubei, Shandong, Hebei, Zhejiang, Jiangsu, Guangdong and other places reflected the existing problems of cotton reserves in various ways to the China Cotton Textile Industry Association (hereinafter referred to as the Cotton Textile Association).

In April this year, the national development and Reform Commission and the Ministry of Finance issued a notice, and decided to gradually digest the state reserve cotton inventory from this year.

In the previous 2015/2016 years, China's cotton production and production demand is increasing.

A cotton textile industry spokesman who asked not to be named, told reporters, "because we heard that we need to store it", textile enterprises are reluctant to increase their inventory at the beginning of this year.

But so far, cotton prices have risen rapidly for a variety of reasons. "The market has created a new imbalance between supply and demand."

After the beginning of the year of silence, from the beginning of April,

Prices began to rise rapidly, breaking through the expected price.

As of July 22nd, the closing price of 1701 cotton futures contracts reached 15195 yuan / ton, up more than 50% from 10030 yuan / ton in April 1st.

At the same time, the national reserve cotton sales base price is also rising, according to the China cotton reserve management company announcement data, 25 to 29 days (thirteenth weeks) in July, the reserve cotton price of the standard grade sales price was 14376 yuan / ton, compared with last week's sales base price 13609 yuan / ton up 767 yuan / ton, compared with the reserve store cotton wheel in the first week 12021 yuan / ton sales base price increased by nearly 20%.

"Such a fast speed up, enterprises must be unable to bear."

A textile industry insider, who declined to be named, told reporters.

Cotton prices are rising, but prices can not be pmitted to the downstream. Textile enterprises can not digest the high cost of raw materials.

The above textile industry sources told reporters that because export is in a negative growth state, domestic sales are slowing down, and terminal demand is not strong, so cotton prices can not be pmitted, and cotton textile enterprises can not digest such a high cost of raw materials.

Sun Kuanghua, a business analyst, also pointed out to reporters that if the price of cotton price rises can be carried out, cotton textile enterprises will be able to earn money. "But at the moment, it is more difficult to raise prices downstream.

Now the downstream is in the off-season, so there is not much demand for the cotton market. "