Can Reserve Cotton Reinforcement Bring Warmth To The Textile Industry In The Cold Current?

Right now domestic

The industry is in a difficult position, and the price and profit of products decrease with the continuous decline of cotton prices.

These two years

stepwise regression

It did not make the textile enterprises feel relieved, but on the contrary, it was more worried and pessimistic about the market.

Now that the cotton reserves are expected to increase, can it bring some warmth to the textile industry in the cold current?

As the saying goes, "flowers do not have a hundred days of red, and people do not have thousands of good days", this sentence is particularly appropriate in the textile industry.

As domestic production costs continue to rise and product prices remain high, domestic and foreign textile and garment market share is constantly eroded by countries such as Southeast Asia.

At present, the production costs of raw materials, labor and electricity in China's textile industry are far higher than those in neighbouring countries.

Just as the domestic textile industry is at a low level, the news of cotton spinning seems to have boosted the textile industry.

Up to now, the government has not issued a policy on the delivery of cotton reserves, and the market has different opinions on the price.

However, in terms of futures, the main contract of Zheng cotton in February 29th fell to ten thousand yuan, at least to show that people have a general view of the price of the reserve cotton wheel.

On the face of it, reserve cotton production is expected to accelerate the decline in cotton prices, but in the long run, long pain is not as good as short pain.

As we all know, compared with Southeast Asian countries, China has long no advantage in production costs such as labor and raw materials, especially in terms of raw materials. In 2011 -2013 cotton prices soared in China, and the whole cotton spinning industry chain appeared a short period of false prosperity.

Finally, since the implementation of the target price pilot policy in 2014, China's cotton price has gradually returned to the market. However, as cotton prices continue to fall, people in the industrial whirlpool are no longer optimistic about the cotton market. More people predict that the current price of cotton depends on the price of cotton reserves.

In spinning cost, the cost of raw materials for cotton accounts for about 70%, which accounts for the largest proportion of production cost, and is far higher than other costs. Therefore, cotton price plays a very important role in guiding the pricing of cotton products.

According to the current situation, the domestic cotton price has basically been in line with the international cotton price.

If it can be said by some people in the world, cotton prices will be bottomed out when the cotton reserves come out, which will be a strong stimulant for the domestic textile industry. At that time, the competitiveness of domestic cotton textile products will be enhanced, and at the same time, it will play a positive role in stimulating consumption.