Cotton Prices Fell, But Cotton Companies Were Gloomy.

In the past month, the domestic cotton market trend has been ups and downs. In the first half of the month, the whole market continued to boom.

"High fever" cotton prices seem to have been curbed in the near future, but under the sharp rise and fall, many textile and garment owners in Jiaxing have fallen into a more hesitant and wait-and-see view, because the cotton price increase is still a bit ridiculous compared with the same period last year.

Cotton hurts farmers, but cotton hurts.

"The economic situation can not be left and right, so knowing how to avoid risks is the most practical and effective way for enterprises.

As early as the beginning of September this year, the enterprises bought enough raw materials in advance, so the fluctuation of cotton prices in the past two months did not have much impact on him.

However, such a procurement decision is not a coincidence, but comes from the accurate judgement of the market trend of the enterprise.

"Every year in July and August, we will send buyers to the cotton producing area to investigate cotton planting situation. They will go to cotton farmers and ginning plants to understand the situation, and take this as a basis for judging cotton price trend."

The official said, in addition, the price of cotton will be affected by many factors, not only the planting area, but also the price fluctuation of weather, market supply and demand, and the cost of agricultural materials.

"From this year's survey, we can see that

At the same time, the company has also taken the pressure of increasing costs by strengthening management and improving efficiency. However, the official said: "cotton prices in recent years have been maintained at around 10 thousand yuan per ton, and cotton prices have almost soared 3 times at the highest time. Although the current cotton price has dropped by nearly 5000 yuan per ton, it is almost impossible to return to last year's level.

In the overall environment of high prices, to truly resolve these pressures, the upper and lower reaches of the industrial chain are also required to cooperate and undertake each other. "

"Cotton is cheap to hurt farmers, cotton is expensive, and businesses are hurt!"

Dancing with the tiger and playing with the market

Despite thousands of miles of cotton textile owners, but "wait-and-see, cautious, confused" is still the overall situation of textile enterprises in the near future.

Even though the recent decline in cotton prices, many business owners worry that next year's situation may be worse.

China's Cotton Research Institute says industry expectations are not clear in the first quarter of next year.

The rise in cotton prices has also been pmitted to clothing products.

The changes in market prices have made many shoppers and citizens shout "I can't eat".

Cao Min, who runs the clothing business in downtown and square, said that she had been buying goods in Sijiqing, Hangzhou several times since the winter, and the purchase price of the same overcoat has increased two times. Besides the wholesale market price of garments, the price of winter clothes such as down garments and cotton clothing has also risen to varying degrees. "Roughly speaking, the price of new clothes this winter is nearly 10% higher than that of last year."

Whether consumers will pay the price rise is a headache for Cao Min, a clothing store owner.

The increase in cotton prices has also affected printing, dyeing, clothing and accessories.

As we all know, as a labor-intensive industry, the profit of textile and garment industry has been relatively low. The price of cotton and other major raw materials has made it difficult for enterprises to make a choice between "protecting profits" and "protecting customers", and substantially raising the price means losing the market.

Xu Peiyuan, head of Haining Home Textile Association, said that the profit rate of the home textile industry was 6.8% at the beginning of this year, and this figure has dropped to 6.6%. In addition to the recent appreciation of the RMB against the US dollar, domestic raw material price increases have also brought heavy pressure on the enterprises.

What is even more worrying is that the surge in China's production costs has allowed some overseas orders to flow to Southeast Asia, India and other regions, and Jiaxing's price advantage has been shaken.

Jiaxing City import and Export Chamber of Commerce responsible person said that due to weather factors this year due to the reduction of cotton production, coupled with the surge in foreign orders to stimulate cotton textile enterprises demand for cotton, all kinds of factors superimposed on cotton supply tight, high prices.