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Textile Industry Pressure Doubled &Nbsp; Cotton Rebound Market Is Just Around The Corner.

2011/8/6 9:55:00 50

Cotton Industry Rebounded In Textile Industry

Regardless of the overall pattern or intensity or weakness of the commodity market, cotton's declining trend always seems to be self imposed.

This week

Zheng cotton

The opening of the main contract CF201 opened at 21505 yuan / ton. Since mid July, the air force has been stubborn at the 21000 point, and the sticky market for three weeks is still hard to see.

However, with the continuous downward shift of the price of the Wednesday term, the air side clearly once again took the lead. Even though the US cotton was the first to launch a rebound, the domestic cotton price was still broken down.

It was not until Friday that cotton prices hit bottom and rebounded to 21000 yuan / ton.

Pressure doubled in textile industry

At present, the US consumer confidence index continues to decline, and the Federal Reserve lowered its expectations for us economic growth.

The euro zone debt crisis has further spread, and the yields of sovereign bonds in Spain and Italy have risen, raising fears about the continued spread of the crisis and increasing risk aversion.

At the same time, the appreciation of RMB has increased the cost of textile exports, making the export competitiveness of China's textile products decline. Under the influence of multiple factors, the export volume of textiles has dropped sharply, and the profits of cotton textile enterprises have shrunk, and their operating pressure has doubled.

Insufficient demand power

Because

Textile industry

The downstream demand is not strong enough, and the stock level remains high, leading to spot price continuing downward. At present, it is close to 19800 yuan / ton of new cotton purchase and storage price.

In terms of supply, the supply of cotton in the market is still relatively loose. In the international market, India's cotton export policy is further relaxed, and the new cotton market is not far off.

Supply quantity

Will maintain a comfortable state.

Inventory in the domestic spot market is yet to be digested, and supply and demand on the fundamentals will still have some resistance to uplink cotton prices.

The rally is on the horizon.

Domestic inflation pressure is not reduced, CPI data in July is still likely to continue to run high. Cotton as a crop, on the basis of rising cost of planting, cotton prices will stabilize after the center of gravity is expected to move upward.

At present, most of the downstream textile enterprises are losing money, and the state will certainly introduce relevant policies to support them, so the risk of doing more contracts is far less.

From the point of view of capital flow, the CF201 position of the main contract has been declining continuously, and the funds pferred to the CF205 contract have been increasing. Although the fundamentals do not support the sharp rise in the price, the rebounding market is just around the corner with the promotion of funds.