Purchasers Only Ask For Inventory &Nbsp; Cotton Prices Are Failing Steadily, And Prices Are Easy To Fall.

In the 109th session

"It's all about running sheets."

"We had great expectations, but now we can only be disappointed.

Buyers will ask if they have any stock and the price affordability is very low.

In May 9th, a business manager of Huarun textile told the author, and because of the decline in cotton prices in 2011, their quotations rose from one price per day in 2010 to a daily price.

A person in charge of the Jiangsu textiles import and Export Group also said that their quotations were also stable.

"Although the popularity of this session has been more prosperous, buyers have a very low desire to buy.

Although Southeast Asian businessmen have also made some big orders, but the price is very low, they all come to run the list, that is, to buy stocks.

He said that now the market is beginning to expect cotton prices to fall later, so even if customers are interested in new products, they will not take the order now.

"We are now focusing on customers, and we should contact them first."

Some traders said that the price of cotton is now fluctuating fiercely, rather than making money.

Their current offer remains 10%-15% year-on-year.

It is understood that in the 109 week before the third phase of the Canton Fair, domestic cotton prices accelerated, and spot market weekly drop of nearly 2000 yuan / ton, a total of 3201 yuan / ton in April.

In May 9th, the main contract 1109 of zhengmian futures fell again, and it closed at 24640 yuan / ton, down 1545 yuan / ton compared with the previous day.

China Cotton Association also said recently that with the downturn in demand for downstream products, the procurement price of raw materials for enterprises has also been greatly reduced.

The recent decline in cotton prices has also made cotton enterprises with more cotton stores panic.

Stock early warning

Exhibitors generally reflected that the fluctuation of exchange rate, labor cost and raw material cost have become three big mountains on enterprises.

Although the price of cotton has dropped, the stock price is still high, and the spinning part is no longer profitable.

Foshan Jinhai hair textile company's business runs through the whole industry chain from spinning to clothing industry. Yang Jun, general manager of the company, told the author that the current quotations are "losing money and selling merchants too high". The overall profit of the company is only 2%-3%, while the spinning link is already losing money.

Nevertheless, in order to digest inventory pressure, it is necessary to take orders.

"Now our inventory is about 2000 tons, with an average cost of 30 thousand / ton."

Yang Haijun said that although the company is also doing hedge risk reduction, but now looking at the falling cotton prices, every day is scared.

The general 15-20 day inventory cycle has now been extended to 30 days.

In fact, the NDRC recently issued the "inventory backlog" early warning. At the end of 3, the finished product inventory of the national industrial enterprises increased by 23.2% compared to the same period last year.

In April, PMI's new orders index and new export orders index also dropped by more than 1 percentage points. Some market participants believe that this is a manifestation of insufficient demand at home and abroad, and the "sell no effect" effect will continue to perplex all walks of life.

Wang said that most of the small and medium-sized enterprises generally expressed difficulties in supporting all kinds of pressures, and some of them had been cut down or stopped production. Their survival conditions may even be more embarrassed than the outbreak of the international financial crisis.

Export enterprises generally dare not sign long bills or even dare not accept them, and the profit declines are more obvious.

According to the Ministry of commerce data, the average profit margin of China's export enterprises was 1.47% in 2010, and dropped to 1.44% in 2011, 1-2.