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The Sharp Decline In Cotton Prices Will Start To Appear In The Second Half Of The Year.

2011/5/27 9:24:00 62

"Cotton price is like a roller coaster. It rises and then falls."

The near future,

cotton

The price fluctuated again, but it did not surge like last year. Instead, it plunged sharply. The spot price dropped by 4000 yuan per ton.

The industry expects that for enterprises,

Cotton price

The sharp reduction will start to appear in the second half of the year.

"Recently, cotton prices have fallen very severely, and the price per ton has dropped by about 4000 yuan."

Tang Zengda, deputy general manager of Ruian Guangyu Knitting Co., Ltd., recently reported that cotton prices dropped from 28000 yuan / ton to 24000 yuan / ton.

In the futures market, Zheng cotton price rose 75% last year, after reaching the highest level of 34870 yuan / ton in February, it fell out of a decline, reaching 26%.

Yongan futures Ruian Business Department analyst said that from the supply and demand side, the high price cotton suppressed the downstream demand, the new year cotton planting area increased, the massive stock of cotton hidden stock which was hoarded last year caused the short supply exceeding the demand. On the technical side, the serious overbought has caused the massive profits to leave the field more, and in addition the early macroscopic facing the economic slow down worry and the fund surface tight anticipation and so on, these factors resonate the function to cause the cotton to fall sharply.

However, after this wave of decline, cotton prices continued to decline in limited space.

At present, the cotton has entered the seeding period, and the future weather becomes the biggest uncertainty factor.

Although the fall in cotton prices will reduce the cost of production, cotton is the main raw material.

enterprise

No immediate benefit.

Ruian Guangyu Knitting Co., Ltd. is a leading product of all kinds of socks, such as men's sports socks, terry socks, boat socks and so on, and its products are sold all over the world.

Tang Zengda said that in order to ensure production, enterprises have stocked more cotton, and it will take some time to digest the stock. Therefore, the good price of cotton prices has not been reflected in the production cost.

"The cotton market is going up and down, and the market is fluctuating. It is hard to grasp. At present, we have not planned to purchase."

Tang Zengda said.

"Most enterprises need a certain amount of time to digest cotton stocks. In the current situation, the impact on the operation of enterprises is relatively small."

Yuan Buqing, Secretary General of the city clothing trade association, said that if prices continue to decline, cotton prices will be good or will begin to appear in the second half of the year.