Foreign Cotton Impact Domestic Cotton 8 Cotton Business Decline

From the data in recent months, the price difference between foreign cotton and domestic cotton is generally around 3000 yuan -5000 yuan per ton.

In view of the low price of foreign cotton, domestic textile enterprises are eager to buy.

Domestic cotton has to reduce the selling price again and again.

Foreign cheap cotton has poured into the domestic market, which has brought a major impact on domestic cotton prices, which is the main reason for the fall in domestic cotton prices.

From April to June, the price of domestic cotton has been decreasing. Thereafter, domestic cotton price has been oscillating at low level in 7 and August.

The upper and lower tracks are 19700 yuan and 18500 yuan / ton respectively.

In September 20th, the price of zhengmian 1301 was 19780 yuan / ton.

Data show that the overall situation of cotton market in 2012/2013 continues to supply and demand in the past year: the total consumption of the world is declining and ending.

The inventory consumption ratio rose.

That is to say, the cotton market is still in the stage of de stocking.

American analysts attributed the decline in cotton prices to consumption in China.

Mike Stevens, an independent cotton analyst, said that if the Chinese did not buy cotton, the price of cotton in the past year would be even greater.

He said: "I think prices may have dropped sharply. There is no doubt that they are the main supporters of prices."

The current market is concerned about the future performance of China in the market.

But in fact, the price of cotton in China has always been at a higher price than foreign cotton imports.

Moreover, due to the influence of cheap imported cotton from abroad, the price of domestic cotton in our country can not rise.

The difference between foreign cotton prices and domestic cotton prices is so great that Zheng Yujie, a researcher of agriculture, forestry, animal husbandry and Fisheries of CIC, believes that the reason is that the degree of mechanization of cotton planting abroad is high and the cost is small. On the other hand, foreign governments subsidize cotton very high, which greatly improves the price competitiveness of foreign cotton.

In order to make up for this difference, we first need to start from planting, improve planting technology, reduce production costs, and secondly, increase the government's subsidy to cotton farmers.

A number of domestic textile enterprises listed companies told reporters about the use of imported cotton, and also mentioned that cotton import quotas were stir fried, the highest paction reached nearly 4000 yuan / ton.

After a large number of low-priced imported cotton enters the domestic market, domestic cotton prices are hard to maintain, which makes cotton growers hard to sell high prices.

Many cotton growers have given up planting cotton and planting crops or other crops.

It has been reported that in November 2010, the purchase price of cotton in Dezhou, Shandong was about 7 yuan per catty. In April this year, when the price was lowest, only 3 yuan per catty, and the current purchase price was only about 3.6 yuan.

As a result, it is not surprising that cotton growers can pform cotton fields into grain fields.

In this regard, Zheng Yujie, a researcher in agriculture, forestry, animal husbandry and Fisheries of China investment advisor, said: "cotton growers will grow in other crops, which will lead to a decline in cotton supply and raise their prices, which will add to the difficulties of the textile industry.

On the one hand, the state can implement the policy of collecting and storing, and the effect of purchasing and storing on cotton prices is very obvious. It can reduce the circulation of cotton in the market and protect the interests of cotton farmers. On the other hand, it can adjust the quotas of imported cotton and appropriately restrict the entry of cheap cotton abroad.

The new year's State purchasing and storage policy was officially launched in September 10th. The temporary storage price is 20400 yuan / ton, and the purchase and storage will continue until the end of March 2013.

According to the analysis of the insiders, new cotton has been listed, but in view of the strict requirements of the new year's storage and purchase, the processing enterprises are also cautious.

Cotton is closely related to the textile industry.

The demand for cotton is low in the doldrums.

Because of the ups and downs of cotton prices this year, most cotton enterprises are now being processed and sold, so as to offset the cost of storage, processing and pportation of cotton.

There are insiders from the listed companies of textile enterprises. The company is buying spot products according to orders.

However, there are also worries about textile enterprises, and equipment and manpower will be wasted, resulting in losses.

Cotton prices up and down so that cotton enterprises are very hurt, coupled with the current decline in demand, so that nearly 8 of cotton enterprises in the first half of this year's performance decline.

Flush iFinD data show that 18 cotton textile industry listed companies, 14 companies declined in performance.

Among them, Changshan shares, ST road B, Vico essence and Huarun Jinhua net profit fell by over 100%, down by 316.46%, 285.96%, 124.27% and 107.42% respectively.

Among them, Huafu color spinning made a profit of 4 million 490 thousand yuan in the first half of this year, a decrease of 98.44% compared with the same period last year.

Sung sung Ling, the company's chief executive, has said that sales growth is basically stable, and orders are continuous orders. Therefore, there is no significant change throughout the year. The main factor that affects the company's performance is cost.

Affected by the continuous fall in international cotton prices, compared with the same period last year, domestic cotton fell by 1000-1500 yuan / ton, but still more expensive than imported cotton 4000-4500 yuan / ton.

At present, some cotton spinning enterprises can say that they sell cotton yarn at a loss, but in order to maintain operation, they can not stop work, otherwise it is the result of bankruptcy.

According to Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, from March to now, 80% of the enterprises in Dezhou area are in the state of stop production and limit production, and 20% of the enterprises may fail.