New Cotton Has Become An Important Source Of Continued Production Of Textile Enterprises.

Only when cotton prices are stable can spinning enterprises develop healthily. The profit of planting cotton is high. Next year, the domestic cotton planting area will expand, which will push cotton prices down. Despite the fact that there are 7 million tons of stock in the State Cotton store, if a large amount of market goes into the market, it will lead to a sharp fall in cotton prices, which will damage the interests of cotton farmers. New cotton has become an important source of continued production of textile enterprises. In the context of high cotton futures prices and frequent grabbing of national cotton stores, Xinjiang New cotton prices hit.

"During the National Day holiday, cotton prices in Xinjiang surged, driving the whole cotton market up. Today, the price of Xinjiang hand picked lint has exceeded 16 thousand yuan / ton, and the price of Xinjiang cotton picking machine has reached 15 thousand and 500 yuan / ton. Li Jifeng, Secretary General of Henan Textile Industry Association, revealed that after the replacement of new cotton and old cotton, the cost of cotton used by spinning enterprises increased by more than 2000 yuan / ton compared with August. Although there are still state-owned cotton stores in the hands of traders, the price has skyrocketed to 15 thousand and 800 yuan / ton. At present, the upstream cotton prices are rising, and the downstream demand is not strong. The cotton yarn enterprises are caught in the pressure of enormous production.

"Cotton planting area has shrunk dramatically this year. Reserve cotton The end of the round and the recent rapid rise of Zheng cotton futures have all contributed to the recent surge in cotton prices. Zheng Bo, a cotton analyst at Zhuo Chuang, said that cotton prices were at a low level when new cotton came to market in early October. Cotton prices began to rise sharply after the beginning of this year. Therefore, the cotton farmers have a high late selling price, and the mentality of selling at a loss at the early stage has a higher psychological expectation for cotton prices. In addition, despite the prolongation of the storage period this year, the turnover rate of cotton reserves rose by 100% at the end of 9. This indicates that textile enterprises and traders are also worried about the cotton supply in the future.

It is understood that this year's southern Xinjiang area is rainy and windy. Recently, hail disaster has occurred in Korla area of Xinjiang. This has an impact on cotton growth. The cotton picking and hand picking cotton market has been delayed for 7 to 10 days compared with previous years. After the end of the cotton reserves, the market supply of cotton appeared briefly "empty window period". The National Meteorological Center recently predicted that cotton production will total 5 million 96 thousand tons this year, a drop of 9.1%.

"Abroad this year" cotton High yield and falling prices. If such internal and external spreads continue, imported yarn will definitely impact China's cotton yarn market. " Li Jifeng believes that at present, most of the textile companies are afraid to buy high cotton prices, waiting for prices to fall. The trend of cotton prices is closely related to spinning enterprises. In the past, nearly 150 cotton spinning enterprises in Hubei, Shandong, Hebei, Zhejiang, Guangdong and other places have reported to the China Cotton Textile Industry Association in the form of telephone and joint letters, and so on.

Although the cost of cotton prices is rising, the price of the spinning enterprises can only rise by 50 yuan to 100 yuan per ton this year because of the demand from the downstream enterprises. Today, textile enterprises are the number of yarn in the hands of how many cotton spinning, do not dare to rush to start. Although Zhu Minfeng's cotton was enough to be produced in November, some of his colleagues could keep cotton for only a few days. Nevertheless, the turnover of new cotton in Xinjiang is still at a low level.

Zheng Bo also said that according to Zhuo Chuang data statistics, the cotton market is in a state of no market price at present. In this year's cotton price rise obviously, the medium-sized and above enterprises in Jiangsu and Zhejiang provinces have already taken the national cotton store early, and the enterprises can keep cotton or support it until November. Henan and other inland provinces have difficulty in survival in the high cotton price environment because their sales depend mostly on Jiangsu and Zhejiang provinces.

Since the beginning of this year, the rising cost of raw materials and labor has seriously affected the textile industry with a small profit margin. According to the statistics of National Bureau of statistics, as of June 2016, the number of spinning enterprises in China with a revenue exceeding 20 million yuan was 19937, compared with 22484 in 2011, a decrease of 2547. In the first half of 2016, the net profit of listed textile enterprises also continued to decline in the first three years, and net profit dropped by more than 10% over the same period.