Orders Are Like Hot Potatoes. They Dare Not Answer.

　 In October 12th, sponsored by Henan Textile Industry Association. Cotton production and marketing The situation forum was held in Zhengzhou. More than 30 responsible persons from 16 key cotton textile enterprises, cotton enterprises, cotton futures enterprises and related institutions participated in the symposium.

Li Shuqin, President of Henan Textile Industry Association, believes that the cotton prices in the domestic market in the new year are slightly higher than that of the previous year due to the increase of cotton planting costs, the expansion of production and demand gap and the increase of other agricultural products. Cotton textile enterprises should dispassionate analysis, rational response and risk prevention.

"International cotton supply and demand are basically balanced." Chairman of Henan Ping Mian group Zhang Xian Shun It is considered that the current high cotton price in China has its rationality. According to the 2010 Cotton Subsidy in Henan Province, the cotton planting area in the province is around 5 million mu, and the total output is about 320 thousand tons, far below the planting area of about 8 million mu in previous years.

Yan Defu, chairman of Shangqiu Galaxy Cotton Industry Co., Ltd., said cotton farmers' expectations for seed cotton purchase prices increased in the new year as cotton prices and cotton planting costs rose sharply. In the new cotton year, there will be waiting and wait-and-see sentiment in cotton growers, which will create a reluctant sale mentality. The cotton price growth expectation is likely to drive cotton prices up in real terms.

" cotton Price increases, cotton yarn is rising, but downstream weaving enterprises have great pressure and difficult to transfer prices. " Lv Shuli, executive director of Desheng Textile Group, said, "orders are like hot potatoes. They dare not answer them."

Song Songji, chairman of Xuchang Yufeng Textile Co., Ltd., said that over the past 8 years, there have been two cotton prices soaring in the market, one in 2003 and one in 2010. The difference is that in 2003, cotton prices rose and cotton yarn did not go up and lasted for a short time. In 2010, cotton prices rose and cotton yarn rose. He believes that if cotton prices fall for two or three months, the supply and demand of cotton will be more intense next July and August. The rising price of raw materials is the trend of the times. Cotton resources are in short supply, the cost of cotton planting is increasing, and the income of cotton farmers is decreasing.

In the case of high cotton prices, what should cotton textile enterprises do? The chief executive of Zhengzhou commodity exchange, Ji Guang Po, said that the turnover and turnover volume of Zheng merchants were 580 million and 30 trillion yuan in 1~8 months this year, all above the level of last year. When cotton prices are skyrocketing and plummeting, cotton textile enterprises should adjust their strategies in time: how much they buy, how fast they will go, how fast they will sell, and how to shrink the scale of production, pay close attention to cotton futures, make full use of the function of cotton futures to find prices, and grasp the trend of cotton market.

"Cotton textile enterprises should not follow suit, do not speculate, do not hype, respond calmly, adjust their product structure according to the actual situation of enterprises, replace cotton with chemical fiber and other raw materials, so as to alleviate the pressure brought by high priced cotton." Shao Jiaxiang, President of Nanyang Textile Group, said.