Hengshui Cotton Prices Continued To Fall By &Nbsp; Textile Enterprises Began To Pay Attention To Imported Cotton.

Hebei Hengshui area Cotton market Continue the downturn. Price Is still continuing to fall, the current four grade seed cotton. Buy The price was 4.7-4.8 yuan / jin (lint 37-38%), the price dropped by 0.30-0.40 yuan / Jin compared with May 7th, and cotton prices continued to decline in the past two weeks. The purchase price of seed cotton was also dragged down by its weight. Cotton enterprises Generally speaking, there are few cotton mills that insist on purchasing. Most cotton growers are in a hurry. At present, the seed cotton purchase market is basically at a standstill. Local four grade lint quotes 25000-25300 yuan / ton, the price fell 700-1000 yuan / ton compared with May 7th, and there was no deal. Last week, a large textile enterprise in Shandong lowered the purchase price of lint repeatedly, which made the market panic deeper. lint A small number of textile enterprises are also afraid to launch, worried that cotton prices will fall, and because of the low market prices and serious losses, most cotton enterprises are generally reluctant to ship, and the market is in a stalemate. The current lint price has dropped to the point where enterprises can not afford it. Local cotton enterprises have already stopped their operations.

It is understood that the rebound in the US dollar and the drop in crude oil drag down the domestic and foreign cotton futures prices in recent days, which has caused a great shock to the cotton spot market. Some cotton manufacturers in the region have followed suit to reduce the price of lint. However, the purchasing intention of textile enterprises has not changed. The local textile enterprises generally maintain a wait-and-see attitude to consume inventory of lint and yarn, and the purchase and sale of lint almost stagnate. The head of a local textile factory said that due to the pressure of tightening policy, the current textile enterprises are generally short of funds and the raw material purchase intention is not strong. First, the difficulty of enterprise loans is increasing, business operations can not get sufficient financial support; two, the increase in financing costs is larger, and the risks borne by enterprises are increased; three, sales of finished products are not smooth, larger stocks occupy larger funds, and the increase in labor costs and sales prices also hurt the enthusiasm of textile enterprises to increase the start-up rate. The official also said that in the near future after the decline in the price of imported cotton, some textile enterprises began to choose imported cotton processing production, such as the United States cotton and Australia cotton, only a small part of Xinjiang cotton, the market demand for domestic cotton is not as strong as before. At present, the price of imported cotton in Hebei area is about 27000 yuan / ton (net weight), compared with domestic cotton has certain advantages.

The 21 session of the 109th Canton Fair ended on the 5 day, and the export volume of this trade fair was $36 billion 860 million, an increase of 5.8% over the same period last year. Due to the rising cost of raw materials and the appreciation of the renminbi, buyers' orders were hesitant. At present, the demand for foreign trade is still strong, but the lifting effect of the textile market may be limited. On the one hand, the linen's stock and yarn stock are enough to meet the demand for orders in a certain time. On the other hand, the state has changed its import and export policy and expanded import demand through the appreciation of the renminbi to offset the domestic inflation pressure. However, the appreciation of the renminbi will make the advantage of low price textile as the main advantage in the international market be weakened. Some Western buyers may shift their orders to other developing countries with lower price. Therefore, domestic cotton market demand in the short term is still difficult to be effectively boosted, and it is not ruled out that the spot price of cotton will continue to go down under the influence of the continued decline in the commodity futures market. The increase in the turnover of the Canton Fair shows that