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When The Demand Is Really Improving, The Lint Market Will Be Warmer.

2011/12/19 14:24:00 8

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This week, most of the domestic lint spot market is stable, and the market in some areas has risen slightly.

Domestic lint spot market gradually stabilized, and this week due to sporadic production area ginning factory early losses, more downtime, relatively low supply, coupled with only a few start-up cotton mill before a small amount of stock, stimulating the local market price increases.

However, there is no sign of warming in the cotton market, which is still suppressed by the following factors:

1, foreign countries, for fear of continuing

sovereignty

The credit crisis will cause the European economy to fall into a full-scale recession. In addition, the US Department of agriculture's supply and demand report is bad, and the financial environment and environment will deteriorate, causing the agricultural product market to be depressed, and the cotton market will not be able to do its best. Then the world's cotton production will increase to a record 27 million tons, and the price of foreign cotton will drop sharply.

2, the domestic side, this year the state entrusted the market to buy and store, cotton growers are actively planting, domestic cotton output in 2011 amounted to 7 million 400 thousand tons, an increase of 18.6% compared with last year, cotton supply pressure is large, and the demand is limited, suppress the domestic cotton market.

3, this week Binzhou Wei Qiao large spinning 427 level.

lint

Suspension of the acquisition, three and 429 normal acquisition, but also only a small number of goods arrived, cotton city only the spinning enterprises to take the lead, so many cotton enterprises confidence has been affected, the mentality is also volatile.

4, at present, many small and medium-sized textile enterprises in many producing areas are unable to resist the impact of the current downturn because of high cost and poor capital turnover. They have been on vacation or shutting down. Only a few textile companies with large scale are still insisting on starting up. However, many of them are mainly buying and selling products, and their production and marketing are slowing down. They have no intention to purchase raw materials, plus the runs of alternatives such as chemical fiber products and other new fibers, and have seized the cotton market.

The current cotton market is still constrained by the above factors, though at present

Cotton price

Most of them have stabilized at the low level, but the market demand is weak. At present, the cotton market is still in a low ebb period. Although the individual production areas are small, they can not compete with the weak trend.

There is still a small profit margin for the smooth storage of the enterprises. Most of the unqualified 200 type enterprises are waiting for market opportunities, but they are unable to go on the market at low prices. The short term domestic cotton prices are still unable to rebound. At the same time, the purchase and storage of the National Reserve brings the bottom effect, and cotton prices are hard to fall further. They will remain weak or stable.