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Xinjiang Cotton Textile Enterprises Want To Avoid "High Cotton Price"

2010/7/22 16:29:00 29

In July 20th, although the spot price of cotton announced by China cotton information network dropped to 18297 yuan per ton, but many cotton enterprises in the territory still cautiously looked at the market after facing the high price of cotton.

"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, Zhao Yang, manager of the raw material cotton purchasing department in Urumqi, 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 great. If the goods are not stocking, the production will be broken after the new cotton comes into the market."

Zhao Yang said,

Cotton price

The rise has further increased the risk of enterprises, and now the lint goods supply in Xinjiang is tight. Basically, we must import 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 cotton lint and pporting cotton yarn. This part of the cost is also self absorbed by enterprises.

As the cost increases further, the downstream customers do not buy it. Many customers begin to wait and see when the price rises.

There are many families interviewed.

Textile enterprises

It seems that the rise in cotton prices is also due to the obvious 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.