Is The Textile Industry Able To Withstand Soaring Cotton Prices?

Although 10/11 year cotton Tension in supply and demand does exist. However, compared to last October's 3 yuan / Jin, the average price of seed cotton was 5 yuan in early October this year, and it has risen nearly 60%.

October 2009 Lint price Between 13000-14000 yuan / ton, the present lint price will also be increased by 22000 yuan / ton or more in the light of market conditions. The price of C32s yarn in Shengze market is 18400 yuan / ton in October last year. In October 31st this year, the price of 32 yarn in Shengze market was 29800 yuan / ton, and the price rose 60%. That is to say, in October and October of last year, prices of cotton and yarn rose by 60%. However, this year's textile profit rise has not reached this value. At present, according to the official of the foreign trade department of the Ministry of Commerce, Ren Feng recently showed that the average profit of the domestic textile industry is between 3%-5%. Small profits have to bear the multiple impact of wage increases, the rise of the RMB exchange rate and the uncertainty of economic recovery in Europe and the United States. Coupled with the recent surge in cotton prices, whether the textile industry can withstand such a high price is worth considering.

This year, the cotton market has gone all the way, reaching a peak before the National Day holiday, but after a national day's buffering. Cotton price Is it all the way up or down? People's mentality is different, and there are two totally different market behaviors in local market. The price of cotton market has reached a peak, and the trend of the latter will be high. And seed cotton prices will not increase again.