Cotton Prices All The Way Down &Nbsp; The Market Outlook Is Not Optimistic.

Under the background of tightening state bank loans, small and medium-sized textile enterprises are facing more and more serious capital depletion. Under the constraint of poor downstream sales, small and medium-sized textile enterprises are closing down and pushing cotton prices down all the way, falling nearly 4000 yuan / ton in 1 months.

After the Spring Festival this year, cotton textile enterprises have been actively going to stock, but because of consumer demand The peak season is not prosperous, sales of cotton yarn and cotton cloth are difficult, and banks tighten up loans, making small and medium-sized textile enterprises facing a "difficult situation".

According to China cotton information network, the scale is 12 million 330 thousand spindles. Cotton spinning enterprise According to the survey, at the end of March, the cotton inventory of textile enterprises was 1 million 236 thousand tons, a slight decrease of 700 tons compared with February, and yarn inventory for 18.25 days, an increase of 3.66 days compared with that in February, and grey fabric inventory for 14.18 days, an increase of 1.65 days compared with February.

The report released by the national cotton market monitoring system showed that as of April 11th, the yarn sales rate of textile enterprises was 84%, a decrease of 8.8 percentage points, the lowest level since September 2008. The number of stock days was 26.5 days, and the annulus ratio increased by 13.1 days, the highest level since March 2009.

Textile enterprises are facing heavy pressure to increase raw materials for purchasing cotton. Stock The enthusiasm of cotton has been greatly reduced, and cotton prices have also declined. In April, the leading textile enterprises in Shandong, Wei Qiao, cut down the purchase price of lint 5 times, and the reception price of 329 grade cotton fell to 25500 yuan / ton from 28500 yuan / ton at the beginning of the month, and the total decrease reached 3000 yuan / ton; and the week before the may day was three consecutive times, the total reduction of the receiving price was 2000 yuan / ton.

The rapid decline in cotton prices has made the spot market wait and see atmosphere strong. It is estimated that the average cost of cotton stocks in cotton storage enterprises is 26000 yuan ~27000 yuan, and the current spot price has made most of the cotton enterprises face losses. At present, many enterprises still have a glimmer of expectation for the peak season of consumption in May, and expect that prices will rise again as a result of better consumption.

Dong Shuzhi, a researcher in the cotton industry, believes that cotton prices have been reduced by 4000 yuan a month, and the market is really panic. Even so, spot trading is still too light, prices continue to decline, so that downstream orders can not be signed, cotton yarn stocks continue to increase, coupled with tight bank loans, small and medium-sized cotton mills because of the depletion of funds is also increasingly difficult.

Reporters also learned that cotton enterprises are now facing the plight of the Agricultural Development Bank's loan push. At the same time, a large textile enterprise in Shandong lowered the offer 500 yuan / ton the day before yesterday. Yesterday, it lowered the quoted price again by 1000 yuan, and the standard grade lint price dropped to 24000 yuan.

Affected by this, on the 5 day, Zhengzhou cotton futures contract price dropped sharply in September, the price fell directly below the 25000 yuan mark, and it closed near the lowest point, reported 24640 yuan / ton, or 5.9%.

"The future market will continue to fall, and spot prices will remain weak. Matching contracts will fall sharply in the long term, indicating that the cotton market is still not optimistic, and the overall atmosphere is empty." Dong Shuangwei, a leading futures analyst, believes that under the current fundamental situation, the main funds are very resolute, and there is still no exit intention. When this time round, the current round is expected to see when the main profit is short and when to choose to leave.

Dong Shuangwei pointed out that the boom in cotton is not conducive to the development of the industry, and the same is true of the cotton price collapse. It is suggested that the state enterprises that have made huge profits in the last year will be able to take up important responsibilities at this time, or to ease the crisis situation of the industry and help the industry get through the difficulties.