Cotton Prices Plummeted All Over The World: &Nbsp; &Nbsp; The Market Outlook Is Not Optimistic.

Under the background of tightening state bank loans, small and medium-sized textile enterprises are facing more and more serious capital depletion. Under the constraint of poor downstream sales, small and medium-sized textile enterprises are closing down and pushing cotton prices down all the way, falling nearly 4000 yuan / ton in 1 months.

After the Spring Festival this year, cotton textile enterprises have been actively taking inventory, but due to the poor demand for peak season, the difficulty in selling cotton yarn and cotton cloth, and the tightening of loans by banks, small and medium-sized textile enterprises are facing a "difficult situation".

According to a survey of 12 million 330 thousand spindles of cotton spinning enterprises, the cotton inventory of textile enterprises in the end of March was 1 million 236 thousand tons, a slight decrease of 700 tons compared with February. The yarn stock was 18.25 days, 3.66 days higher than that of February, and grey fabric inventory 14.18 days, 1.65 days higher than February.

And the state Cotton market The report released by the monitoring system showed that as of April 11th, the yarn sales rate of textile enterprises was 84%, a decrease of 8.8 percentage points, the lowest level since September 2008. The number of stock days was 26.5 days, and the annulus ratio increased by 13.1 days, the highest level since March 2009.

Textile enterprises are facing heavy pressure, and the enthusiasm of purchasing raw materials for cotton is greatly reduced, and cotton prices also drop. In April, the textile leading enterprise Wei Wei Qiao lowered the purchase price of lint 5 times, and the reception price of the 329 grade cotton fell from 25500 yuan / ton to 28500 yuan / ton at the beginning of the month, the total decrease was 3000 yuan / ton; and the three week before the May Day was three yuan, the total price was reduced by 2000 yuan / ton.

The rapid decline in cotton prices has made the spot market wait and see atmosphere strong. It is estimated that the average cost of cotton stocks in cotton storage enterprises is 26000 yuan ~27000 yuan, and the current spot price has made most of the cotton enterprises face losses. At present, many enterprises still have a glimmer of expectation for the peak season of consumption in May, and expect that prices will rise again as a result of better consumption.

cotton industry Researcher Dong Shuzhi thinks cotton price has been reduced by 4000 yuan a month, and the market is really panic. Even so, spot trading is still too light, prices continue to decline, so that downstream orders can not be signed, cotton yarn stocks continue to increase, coupled with tight bank loans, small and medium-sized cotton mills because of the depletion of funds is also increasingly difficult.

Reporters also learned that cotton enterprises are now facing the plight of the Agricultural Development Bank's loan push. At the same time, a large textile enterprise has lowered the offer price of 500 yuan / ton the day before yesterday. Yesterday, it lowered the quoted price again by 1000 yuan, and the standard grade lint price dropped to 24000 yuan.

Affected by this, on the 5 day, the futures contract price of cotton futures fell sharply in September. The price fell directly below the 25000 yuan mark, and it closed near the lowest point, reporting 24640 yuan / ton, or 5.9%.

"The future market will continue to fall, and spot prices will remain weak. Matching contracts will fall sharply in the long term, indicating that the cotton market is still not optimistic, and the overall atmosphere is empty." Dong Shuangwei, a leading futures analyst, believes that under the current fundamental situation, the main funds are very resolute, and there is still no exit intention. When this time round, the current round is expected to see when the main profit is short and when to choose to leave.

Dong Shuangwei pointed out that the boom in cotton is not conducive to the development of the industry, and the same is true of the cotton price collapse. It is suggested that the state enterprises that have made huge profits in the last year will be able to take up important responsibilities at this time, or to ease the crisis situation of the industry and help the industry get through the difficulties.