Demand Reduction Cotton Price Fever &Nbsp; Stock Spinning Enterprises Cautious Buying Up, More Afraid To Buy Fall.

Soaring since last year cotton The price of the roller coaster is again on the market. After the historical high of 34870 yuan / ton in February this year, cotton prices began to "drain" from March. At present, cotton futures prices fell below 25000 yuan / ton, or more than 28%. 6 days, Zheng cotton Futures hit a new low of 24205 points, cotton spot quotes also continued to fall sharply, China's cotton price index (grade 328 cotton) received 26076 yuan / ton, down 384 yuan.

　 Demand reduces chain reaction to push cotton prices down

High cotton prices since last year, many small and medium-sized textile and garment enterprises are facing unprecedented impact. For underwear weaving with cotton as the main raw material, Cotton price Rising has become the "magic curse" of enterprises.

It is understood that for textile and garment enterprises, especially cotton spinning enterprises, cotton is the main raw material, accounting for about 60% to 70% of the cost of production. According to the current average profit rate of 12% in the industry, the cotton price will rise by 1%, and the profit will drop by 0.53%. Analysis of the industry, "upstream raw material prices rise, downstream sales sluggish" makes textile and garment enterprises are faced with heavy pressure, the purchase of cotton raw materials inventory enthusiasm greatly reduced, resulting in cotton prices fell, and the spot market wait-and-see atmosphere, further led to a low turnover.

　 Inventory drop enterprise Wait-and-see sentiment increases.

Since the second half of last year, cotton prices have been at a high level for a long time. Most textile and garment enterprises dare not venture to buy cotton at high prices, and most of their stocks are in a state of shortage. "Generally speaking, the raw material inventory of textile enterprises will remain at around 2 months, but the rise of cotton prices has reduced a large number of textile enterprises to cotton reserves and reduced the reserve period to 20 days." Chen, chief of a textile enterprise in Quanzhou, told reporters.

Then, cotton prices have dropped sharply in recent years. Will spinning enterprises increase their stock? Journalists have learned that, although cotton prices were high, many textile enterprises had already reduced their inventories, but enterprises still had to consume high priced cotton in advance before buying new cotton. More companies choose to wait and see to avoid inventory losses due to the downward trend in cotton prices.

From the perspective of price transmission of textile and clothing products, the price of the terminal products from cotton, cotton yarn, cotton cloth to clothing and so on is gradually downward, but the smaller the price is, the more the downstream price increases. The sharp rise and fall will lead to higher costs and market risks for upstream enterprises, and make the downstream enterprises difficult to survive. Cotton prices rose more than 100% last year, while the rise in terminal clothing products was only two or three.

　 Raw materials do not use cotton instead of fiber.

In view of the adverse effects brought about by the huge fluctuation of cotton prices, many Quanzhou textile and garment enterprises have chosen to take the initiative to "attack", comprehensively adjust the yarn, craft and product structure, reduce the amount of cotton used, and speed up the research and development of non cotton natural fibers such as bamboo fibers, reduce their dependence on cotton, and make products more personalized and attractive.

At this year's Haibo conference, 600 new fabrics, including seaweed fiber, chicken feather fiber, soybean fiber velvet and other new fabrics, were displayed on 57 fabric stands. "Emerging textiles are less affected by price fluctuations in the raw materials market. Quanzhou's textile industry chain is very complete, and has more advantages in the development and application of non cotton products." Textile fashion trend research expert Wang Wei previously said in Quanzhou.