Textile News

From early April 2021, international cotton futures prices have doubled, and New York cotton futures prices have risen to about 158 cents/pound, which has continuously refreshing new highs in the past ten years. At the same time, the domestic cotton futures transaction price will soon exceed the 22,000 yuan/ton mark.

So, what is the reason behind the rise of international cotton prices? How long will the Khmer prices last at home and abroad? How will it affect the production and operation of cotton textile companies?

PART 01 Cotton Cotton reduction is the main reason for rising cotton prices

The continuous rise in international cotton prices made textilers shout "crazy cotton prices". Behind the crazy cotton price, there must be many factors, but those who occupy the leading factors are cotton reduction. The cotton production area of the United States, the cotton output of Texas, accounts for about half of the total cotton output of the United States.

At present, Texas is suffering from extreme drought, and drought may further become worse. Due to the scarce rainfall, cotton in Texas was abandoned in a large range. According to the prediction of the US agricultural department, the cotton revenue of cotton in the United States increased by more than doubled this year, and the output decreased significantly. At the same time, due to the shortage of food caused by the Ukraine crisis, the United States' reducing cotton planting and increasing the expectations of large bean cultivation is also being further promoted.

Not only the United States, the global cotton second producer and the third exporter -India, its cotton market has also changed new changes in the near future.

The cotton supply data released by the Indian Cotton Association showed that the total cotton supply of cotton this year was 7.227 million tons, a decrease of 2.71%month -on -month. Due to the downturn in cotton production in India, the prices of seed cotton and cotton cotton rose all the way, and hit a record high, which also caused serious inflation in the domestic clothing industry in India. In order to curb the rise in local cotton prices, the Indian Textile Association suggested that the government stops exports. Indian cotton exporters have also announced that they have stopped exporting cotton to China. At present, India has appeared in the Indian government that the Indian government announced in April to make up for domestic supply shortages that the Indian government announced in April that cotton import tariffs were revoked by the end of September.

Wang Dan, director of the Information Department of the China Cotton Association, said that the apology of Mimi and the reduction of cotton exports in India have caused the shortage of cotton supply in the world. It is expected that international cotton prices will continue to be at high in the short term. The World Bank recently stated in its report that it is expected that cotton prices will rise by nearly 40%in 2022. As the weather conditions improve, it will fall 6%in 2023.

Part 02 Domestic cotton price decline space limited

Since April 2020, domestic cotton prices have risen all the way. On April 2, 2020, the Chinese cotton price index was 11105 yuan/ton, which doubled within two years. Especially in the second half of last year, cotton prices rose nearly 10%within a month. But since this year, domestic cotton futures prices have remained basically stable.

As a global larger cotton producer and cotton importer, in 2022, my country's cotton spring sowing situation is good. The China Cotton Association survey shows that most of the nation's cotton areas are more suitable, which is conducive to cotton sowing and growth. Most of Xinjiang cotton area cotton emerged at the end of April, and the seedling period was earlier than all year round.

Wang Dan said: "Due to the restrictions of import quotas, international cotton prices and domestic cotton prices are not particularly close, but due to the low domestic cotton inventory, cotton textile exports have benefited from the depreciation of the RMB. . Recently, factors such as poor import and export and poor logistics have limited the supply and demand and production of cotton, but it is expected that with the gradual optimization of epidemic control, the cotton market will be further normalized. "

At present, the domestic cotton market is characterized by the continuous downturn. In the first quarter of this year, my country's textile industry capacity utilization rate was only 78.2%, which was less than 0.1 percentage points in the same period last year. Since the second quarter, the phenomenon of insufficient downstream orders in the textile industry has begun to become obvious, which has a direct connection with domestic epidemic, poor logistics and transportation, and consumers' weakness in clothing demand.

If there is a shortage of supply on the supply side is the main cause of boosting cotton prices, then the slump on the demand side makes it difficult for the global cotton market to get out of trouble in a short period of time. The international Russia -Ukraine conflict and the domestic new crown pneumonia's epidemic has led to the slow process of the global economic recovery. The market's expectations for cotton consumption recovery continued to weaken, and many domestic spinning companies have scarce orders.

Will cotton prices continue to maintain a high position in the future? Wang Dan believes that the domestic cotton spot price is relatively stable, but it is also facing difficulties. Due to the light cotton market, cotton sales are far less than in previous years. Faced with Khmeric prices abroad, domestic cotton prices have limited space. At present, the domestic cotton market has a high price and low -sales embarrassing situation. The upstream and downstream of the textile industry will have a certain degree of disconnection. The cost is difficult to transmit. Inhibit the further ride of cotton prices. Looking forward to the long -term period, although the price of commodities is still at a high stage, inflation is expected to be suppressed with the Federal Reserve's interest rate hikes and shrinkage. When cotton prices return to rationality, it is also the time when the entire industry has re -entered the right track.

PART 03 "Internal and Outside" to keep it smoothly

In May, although most regions of Jiangsu and Zhejiang provinces have been effectively controlled, textile companies still face multiple pressures such as slight surge in orders, rising logistics costs, and fluctuations in market demand. Local government departments take into account the prevention and control of the epidemic, and keep and maintain. Industry organizations and textile companies actively respond to enhance their competitiveness. Textile companies such as Zhongding Technology, Yide Textiles, and Wuxi Yiman are in trouble in the face of difficulties to re -work for the industry The outbound rate was made.

Faced with the "urgency and sorrow" of the textile industry enterprises, all parts of Jiangsu combined with the actual situation of the city to launch more detailed and targeted assistance measures, adhere to the prevention and control of the enterprise epidemic, and grasp the industry chain supply chain supplier guarantee. Pass.

In early April, the Jiangsu Provincial Department of Industry and Information Technology led the establishment of a stable key industrial chain supply chain work class, established the "whitelist" system for the key industry chain supply chain, and fully coordinated the logistics transportation of enterprises. "Guarantee and Bao Chang Video Conference", guide enterprises to actively respond to help enterprises open breakpoints in the industrial chain.

Benefiting from a series of policies for enterprise -owned enterprises, Suzhou Dabang Textile Co., Ltd. opened the green channel under the coordination of the local government and completed the approval process of the "Soviet Code" for the "Soviet Code" within one day. The local government also urgently deployed epidemic prevention materials such as protective clothing, disinfection agents, and instructing enterprises to do a good job of internal epidemic prevention risk control, ensuring that 18 tons of knitted woven fabrics were successfully loaded from Shanghai Port to Cambodia from Shanghai Port, and the risk of breach of contract was avoided. The Jiangsu Provincial Federation of Industry and Commerce Clothing Industry also understands the difficulties of the enterprise in time, strives to unblock relevant departments and helps enterprises with help.

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