Cotton City Is Out Of The Mire And Has A Long Journey.

After the rally ended in mid September,

The new cotton year began in September and cotton picking and processing began in cotton fields.

In mid September, except for the rainy weather in the the Yellow River Valley, the weather in other cotton areas was fine, so the harvest of cotton seeds this year was faster than last year.

At present, the reference price of cotton purchase in China shows that the purchase price of 328 seed cotton with 38% lint and 10% moisture is 4.24 yuan / kg, and the price of cotton seed converted to lint is 19170 yuan / ton.

The price reduction made some cotton farmers reluctant to sell, and began to sell them voluntarily.

It is difficult to sell lint from cotton enterprises, and gradually turn to storage and storage.

In September, sales of textile enterprises improved slightly, and cotton yarn prices stabilized at a time and slightly increased, but in the past few years, there was still a bad season.

Recently, yarn prices have dropped again, showing that enterprises are still not optimistic about the cotton market.

The inventory of textile enterprises has been decreasing since June. After 3 consecutive months of inventory reduction, the inventory has dropped significantly. At present, most of the finished products of textile enterprises are kept at 15 to 30 days. Although the inventory level is still higher than in previous years, the pressure has been alleviated to a certain extent.

However, this pressure has not disappeared in the industrial chain, but has been pmitted to the grey cloth link, making the inventory of grey fabric gradually increasing.

It is expected that in the long run, the purchase of yarn will continue to slow down, so that the inventory pressure will be eliminated.

And the reduction of orders is bound to make textile enterprises more cautious about raw material procurement, and with the general financial strain of enterprises, the latter will insist on buying and using.

Weak demand for textiles and clothing

On the export side, the data released by the General Administration of Customs show that textile and clothing exports in September amounted to 22 billion 981 million US dollars, a decrease of 9.7% compared with the same period, of which 7 billion 948 million US dollars in textile exports, 5% in the annulus, and 15 billion 33 million US dollars in clothing and accessories exports, down 12%.

The United States, Japan and the European Union are the major importers of textiles and clothing in China. According to the consumer confidence index of various countries, except Japan's consumption power has gradually recovered from the earthquake disaster, the US and European Union's confidence index has continued to decline due to the European debt crisis and the unoptimistic economic situation.

At the 110th Canton Fair, the number of European and American customers dropped sharply, and the order of small and medium-sized enterprises was shrinking. The Canton Fair also highlighted the grim situation of foreign trade from another angle.

At the same time, domestic consumption did not appear to be better than expected, and overall demand showed signs of slowing down.

In September, the volume of retail sales of all kinds of garments in 100 major large retail enterprises decreased by 1.98% compared with the same period last year, the first time in recent months.

RMB appreciation worries export trade

RMB appreciation will increase the export cost of products, thereby weakening its competitive advantage in the international market, and at the same time, reduce the export profits of enterprises.

In recent days, the US Senate voted to pass the 2011 currency exchange rate supervision reform act, which called for the US government to impose punitive tariffs on the so-called "undervalued" trading partners, which is intended to force the renminbi to accelerate appreciation.

If the bill is passed in the form of law, it will make the domestic textile export enterprises worse.

Prices continue to fall slightly, cotton enterprises, due to no profit processing, have reduced the purchase price of seed cotton.