The Textile Industry Is Getting Warmer And The International Cotton Price Is Expected To Continue To Strengthen.

< p > < /p > P > high inventory + internal and external Khmer price difference hijacked the whole cotton spinning industry.

In 2012, cotton spinning enterprises suffered losses across the board.

There are two reasons: in 1 or 12 years, domestic cotton prices have dropped, < a href= "//www.sjfzxm.com/news/index_s.asp" > cotton textile enterprises < /a > stock more high priced cotton, enterprises go inventory, discount sales, reduce corporate profits.

2, the price difference between domestic and foreign cotton is high. In the past 12 years, the difference between domestic and foreign cotton prices was as high as 6000 yuan / ton, which exceeded the normal cotton price range of normal profits.

The export of cotton textile enterprises is relatively large. Cotton textile is located in the middle reaches of the textile and garment industry. The market is completely competitive. The price of cotton yarn and cotton cloth depends on the overseas market. Chinese enterprises have no pricing power in the international cotton yarn market. Therefore, the domestic cotton textile enterprises' high price < a href= "http:// www.sjfzxm.com/news/index_c.asp" > cotton < /a > the cost is hard to pass on to the downstream garment enterprises at home and abroad.

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In the past 13 years, the main logic of our cotton spinning enterprises is three: < /p > P.

< p > 1, and the difference between domestic and foreign cotton prices has narrowed. Last Friday, the difference between CottonlookA index and grade 328 cotton price was 3500 yuan / ton, which was at a low level since the second half of 12 years.

As India cotton quotes rise, weather in the US cotton producing area is abnormal, and Brazil cotton is hit by pests. The international cotton price is expected to continue to strengthen.

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< p > China's cotton purchase and storage ended in March 31st, indicating that this year's large-scale acquisition and storage will soon come to an end.

The ratio of domestic cotton dump and sliding quota import quota 3:1 also locked the number of imported cotton enterprises in China.

In the short term, the domestic a href= "//www.sjfzxm.com/news/index_cj.asp" > cotton price < /a > fluctuates little, while the increase in cotton prices is expected to continue to strengthen the trend of narrowing the difference between the inside and outside cotton prices, which is conducive to increasing the price advantage of the domestic cotton textile enterprises to export cotton yarn.

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< p > 2, the domestic cotton textile enterprises have basically finished the inventory after 12 years and fourth quarters of discount sale. At present, the main cotton spinning enterprises can keep the production capacity for 2 months.

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< p > 3, cotton spinning enterprises use the 12 year slump year, basically release the unfavorable factors of the company early, and lay the foundation for the growth of 13 years' performance.

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< p > textile and garment export data are favorable to export cotton textile enterprises, but the sustainability needs to be further verified.

The February foreign trade data released by the General Administration of Customs confirm that the textile industry is expected to get warmer than expected: < /p >

< p > February, China's textile and clothing exports were 16 billion 478 million US dollars, up 69.7% over the same period last year.

Textile exports amounted to US $5 billion 890 million, an increase of 38.08% over the same period last year.

The main reason is that there are signs of recovery in the main economies around the US and Japan, and consumer expectations are rising.

But data show that the European debt crisis is showing signs of continued deterioration. It is still a matter of time before peripheral demand picks up.

Weak demand, coupled with the previous period of cotton yarn prices were fry, is expected next cotton yarn, cotton prices will be callback, thereby indirectly affecting the domestic textile manufacturing products export growth, so the domestic cotton textile exports to bottom up the signal is not clear.

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< p > profit forecast: domestic and foreign cotton price difference narrowed, textile exports increased year by year, favorable for domestic textile enterprises.

From the perspective of domestic demand, sales of clothing in 100 shopping malls increased by 6% compared to the same period last year, showing that there was no marked improvement in domestic demand.

Therefore, in the textile and garment industry, we are going to push the inventory of cotton spinning enterprises with high capacity utilization rate: Huafu color spinning and Lu Tai A.

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< p > risk warning: domestic and international terminal demand will drop significantly, which will affect corporate performance.

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