No Profit Factor Cotton City Will Remain Depressed Until The Three Quarter.

"The cotton market will go further down."

Affected by the shortage of good cotton in the second half of last year, cotton prices have climbed all the way. Before the Spring Festival, a large number of textile enterprises replenishment of the warehouse have strong support for cotton prices.

And along with the subtle changes in fundamentals, domestic

At the end of March 2011, the eight ministries and departments of the NDRC and other departments planned to reduce the high temperature of cotton rapidly. The 2011 year cotton temporary reserve plan was released. The scheduled execution time was determined from September 1, 2011 to March 31, 2012. The temporary storage price was 19800 yuan per ton of standard grade lint to the warehouse.

According to the Wind data, the price index of domestic cotton has dropped to 19800 yuan / ton from August 3rd.

In the process of falling cotton prices, the high price of cotton stored at the beginning of the year is very serious.

Some enterprises, because of the large quantity of goods they stored in the past, came in a large quantity with the increase, and the excess stock increased the pressure of inventory.

It is understood that farmers and the purchase of processors have cotton.

Old cotton can not be sold, and some of the processors' stocks are not sold in time.

For downstream spinning and weaving enterprises, the pressure to stock is also very large.

Even traders and textile mills recognize the current cotton price, but the central bank has raised the deposit reserve rate 6 times, raising interest rates several times, and constantly tightening the money supply.

"Small and medium-sized enterprises, including cotton spinning enterprises, have no capital flow, even if they want to buy, they have no money."

At the same time, under the influence of the slow recovery of the global economic recovery, the debt crisis in Europe and the United States has led to a long-term downturn in consumption.

In addition, the appreciation of the renminbi, the increase in product prices, the reduction of export orders, and some of the terminal consumption have been pferred to a relatively cheap labor country.

Therefore, the whole industry chain is relatively rigid, the operation is not good, and the demand is reduced.

Enterprises even choose low price chemical fiber to replace production by reducing the ratio of cotton.

As for the supply of new cotton in China, as long as there is no extreme weather, the output of new cotton will be increased after September, and the cotton price in the industry is expected to go down.