Business News Agency September 16 "Fortunately, we are still alive, there are still breathes. Finally wait until the bottom of the cotton price, and hope can be steady after the rise." General Manager of Zhejiang Xin Lang Textile Co., Ltd. Fan Junfeng interview with the author At the same time, several sighs were issued. On that day, it was the first day that the country initiated the 2011 temporary cotton purchase and storage. Fan Junfeng optimistically predicted that the government's minimum protection price policy will play a role in stabilizing cotton prices.
In the past year, due to the ups and downs of cotton prices, its upstream textile companies have also experienced severe hardships, and there has been a large number of small and medium-sized textile enterprises in the market facing life and death. However, it is rather strange that the apparel companies did not seem to be involved in this price game, but instead the price increase.
Ups and downs also died. Since the cotton price peaked in February this year, a paper plan from the National Development and Reform Commission and other eight departments at the end of March quickly cooled the high-burning cotton price, and then entered the plummeting rainy season. By the end of August, the price of cotton had fallen below the national temporary storage price of 19,800 yuan per ton, and the rate of decline was close to 50%.
“Our textile companies have been greatly affected by this, and the small factories have all stopped work, and the big factories can barely support it,†Fan Junfeng said with excitement. “Last year the whole industry did make a lot of money, and the colleagues laughed, but one Suddenly he called for hanging."
The fall in cotton prices was originally good for the downstream companies, but everything was ruined by human greed. Just a year ago, the cotton market was entirely another situation. The price of cotton can be described as “risingâ€. It is almost a day's price. The high price of cotton has caused the bankruptcy of a group of weak cotton spinning companies. The other bold textile companies made big fortunes. They took the risk of taking up a lot of cotton from production funds, and they made a fortune, but this game of drums and flowers suddenly met the ceiling of March this year. “The cotton yarn I bought the previous month will have to lose two or three dollars per metre in the next month, and will lose three or four bucks in another month. I can't sell my hand and feel even more panicked. I don’t know the price of cotton. It will fall to what extent, selling and not selling are losses." Fan Junfeng told the author that at that time, the cotton yarn produced by a large volume of companies did not sell at the price of cotton at that time, and the market was always too expensive, and many cotton spinning companies Have at least two months of inventory in hand.
It is understood that many large-scale enterprises in the industry have also been affected. For example, Huafang Textile, Fengzhu Textile, Weiqiao Textile and other enterprises have many high-priced cotton in their hands, which directly affects their willingness to purchase in the coming year. It is even rumoured that Huafang Textile's reorganization may have stopped because of cotton prices.
It takes time for the market confidence to recover. “The state will initiate the temporary purchase and storage price of cotton and will purchase it at the bottom price of this price. It will give cotton farmers a sure-footed pill and indirectly determine the bottom line of this year's cotton price.†Liang Daya, general manager of Bingtuan Cotton Co., Ltd. The future trend of cotton prices is very confident, he believes that from now on the cotton price will show a wave of slowly rising trend, but taking into account the current and future periods of capital and policy side bearish, the cotton price cap should not exceed The peak of cotton prices in February this year.
In the past year, due to the ups and downs of cotton prices, its upstream textile companies have also experienced severe hardships, and there has been a large number of small and medium-sized textile enterprises in the market facing life and death. However, it is rather strange that the apparel companies did not seem to be involved in this price game, but instead the price increase.
Ups and downs also died. Since the cotton price peaked in February this year, a paper plan from the National Development and Reform Commission and other eight departments at the end of March quickly cooled the high-burning cotton price, and then entered the plummeting rainy season. By the end of August, the price of cotton had fallen below the national temporary storage price of 19,800 yuan per ton, and the rate of decline was close to 50%.
“Our textile companies have been greatly affected by this, and the small factories have all stopped work, and the big factories can barely support it,†Fan Junfeng said with excitement. “Last year the whole industry did make a lot of money, and the colleagues laughed, but one Suddenly he called for hanging."
The fall in cotton prices was originally good for the downstream companies, but everything was ruined by human greed. Just a year ago, the cotton market was entirely another situation. The price of cotton can be described as “risingâ€. It is almost a day's price. The high price of cotton has caused the bankruptcy of a group of weak cotton spinning companies. The other bold textile companies made big fortunes. They took the risk of taking up a lot of cotton from production funds, and they made a fortune, but this game of drums and flowers suddenly met the ceiling of March this year. “The cotton yarn I bought the previous month will have to lose two or three dollars per metre in the next month, and will lose three or four bucks in another month. I can't sell my hand and feel even more panicked. I don’t know the price of cotton. It will fall to what extent, selling and not selling are losses." Fan Junfeng told the author that at that time, the cotton yarn produced by a large volume of companies did not sell at the price of cotton at that time, and the market was always too expensive, and many cotton spinning companies Have at least two months of inventory in hand.
It is understood that many large-scale enterprises in the industry have also been affected. For example, Huafang Textile, Fengzhu Textile, Weiqiao Textile and other enterprises have many high-priced cotton in their hands, which directly affects their willingness to purchase in the coming year. It is even rumoured that Huafang Textile's reorganization may have stopped because of cotton prices.
It takes time for the market confidence to recover. “The state will initiate the temporary purchase and storage price of cotton and will purchase it at the bottom price of this price. It will give cotton farmers a sure-footed pill and indirectly determine the bottom line of this year's cotton price.†Liang Daya, general manager of Bingtuan Cotton Co., Ltd. The future trend of cotton prices is very confident, he believes that from now on the cotton price will show a wave of slowly rising trend, but taking into account the current and future periods of capital and policy side bearish, the cotton price cap should not exceed The peak of cotton prices in February this year.
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