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Cotton Prices Down "Choking" Xinjiang Textile Enterprises

2010/7/23 10:50:00 38

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July 20th, despite China

cotton

The spot price of cotton announced by the information network dropped to 18297 yuan per ton, but in the face of high cotton prices, many textile enterprises in the territory are still cautious about the market outlook.

"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 factory of a state-owned cotton textile factory in Shihezi, told reporters that the cotton yarn and cotton cloth in the factory was mainly sent to Jiangsu and Zhejiang provinces. Due to the rising price of raw materials, the average price of cotton yarn was about 33000 yuan per ton, 5000 yuan per ton compared with the same period last year, and 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 has increased by 1 yuan.

Cao Xin counted the accounts to reporters. Compared to last year, the increase of raw cotton alone reached about 30%, while the increase of products was less than 20%, plus pportation, labor and other costs rising, which were squeezing profit margins step by step.

Similarly, a textile in Urumqi.

Raw material of enterprise

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 that the increase in cotton prices has further increased the risk of enterprises, and now the lint supply in Xinjiang is tight. Basically, we must purchase 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 and pporting cotton wool.

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 many textile enterprises, cotton appears.

Price

The rise is also due to the apparent shortage of goods 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.