Cotton Prices Continued To Rise Near The Spring Festival.

The Spring Festival is approaching, while the spot price of cotton is rising again. In January 25th, the CC Index328, which represents the spot price of cotton in China, closed at 28205 yuan / ton, an increase of about 3% compared with the beginning of the month, up 89% from the same period last year.

Excluding the slight drop in January 6th, the 328 index continued to rise in the rest of the monitoring period.

In 2010, China's cotton price index (CC Index328) rose from 14879 yuan / ton at the beginning of the year to 27508 yuan / ton at the end of the year, up 85%, and the 328 index in November reached the historical high of 31302 yuan / ton.

However, under a series of policies and regulations, commodity prices have dropped. Cotton prices have been the biggest and fastest, the most serious and the most obvious.

From mid November to the end of March, less than 20 days later, cotton futures in Zhengzhou fell by nearly 25%, and spot sales fell by more than 16%.

But after entering December, cotton prices rose again.

The industry said that the current

The latest report of China's first textile network also shows that since 2010,

At present, with the Spring Festival approaching, textile mills are on the agenda, and many cotton processing plants have been shut down.

However, driven by the continuous rise of the electronic disk, the spot market quotation of cotton is still strong, and the mentality of the market bullish after the Spring Festival continues to strengthen.

In the short term, the textile mill will replenishment, the spot price will continue to rise, and the procurement will gradually become colder. It is expected that the pre harvest procurement will remain light, and cotton prices will steadily increase. With the gradual start of domestic cotton consumption, the downstream demand is expected to drive cotton prices to continue to rise.

Industry chain

A textile analyst Wang Qian pointed out that the rise in cotton prices will help increase cotton farmers' income and stabilize the cotton planting area in the new year. Of course, high cotton prices will also bring high risks to cotton enterprises and textile enterprises.

"Now cotton prices are looking for a balance. It is still time for cotton growers, cotton ginning, spinning, weaving, clothing manufacturers, and final customers to win more, but the era of cheap textiles has ended."

From the analysis of species and cost, Wang predicts that the expected price of cotton in 2011 will be 22500 yuan / ton at the bottom, and the possibility that cotton price will fall below 20 thousand will hardly exist without the outbreak of the big financial crisis.

However, after the state has stepped up its efforts to control and control, the possibility of rapid innovation is not great. It has become a policy risk zone at the top of 30 thousand yuan. However, in the latter part of the year, there is still a potential power to continue to innovate.

The rising pressure of cotton prices has been continuously pmitted to downstream industries such as weaving, dyeing, clothing, home textiles and so on. At the same time, the cotton price has played a great exemplary role in the price of viscose, spandex and polyester as an alternative product, which has also contributed to the rise and turbulence of these chemical fiber prices.

The Huamao share which has published the annual report 2010 has promoted the corresponding rapid rise in yarn price and cloth price because of the rise in cotton prices. The gross profit margin has increased for four consecutive quarters, and the gross profit margin is 15.96% year-on-year, an increase of 7.24 percentage points over the same period last year.

Similarly, Jiangnan high fiber also benefited from the rise in polyester price driven by the rise in cotton prices. The company's three and fourth quarter operating revenues were 390 million yuan and 422 million yuan respectively, of which the gross profit rate of the fourth quarter reached 19.38%, much higher than the 10.96% of the first three quarters of 2010.

However, high cotton prices have also brought severe tests to some textile and garment enterprises in China. Some popular and differentiated products are difficult to raise prices, unable to digest the pressure of rising costs in a timely manner, which further compresses profit space.

In addition, the rise and fall of cotton prices will also affect the cost determination of textile enterprises, which will lead to difficulties for enterprises to receive orders. Enterprises should take measures such as limiting production, reducing production, shutting down production and adjusting the proportion of raw materials.

Wang said that the key to the late cotton price is whether the upstream price can be effectively pmitted and maintained for a long time.

At present, the price rise of terminal products has begun to appear. It is certain that inflation has been formed from raw materials to gauze to fabric clothing, and the price system from the top to bottom will be redefined.