Cotton prices hurt the entire textile industry chain

From the Zheng cotton price index, before and after the Spring Festival this year is still more than 33,000 yuan per ton, and before and after the National Day has dropped to 20,000 yuan mark, a drop of nearly 40%.

Cotton spinning companies are even more arduous. In the last cotton year, cotton prices hit a record high due to reduced production and the decline in the quality of new cotton.

As a result, the cotton enterprises in the middle stage collectively see more, and cotton has become a common practice. End-user textile companies suffered greatly. It was difficult for them to bear heavy prices and began to adjust their structure with polyester/cotton or other fibers instead of pure cotton.

The various structural adjustment measures of textile enterprises have made the price of cotton fall after the Spring Festival.

According to the import and export data released on Thursday, the export value of textile and clothing has dropped month-on-month for two consecutive months and the external demand is insufficient. Downstream polyester polyester market sales were sluggish, prices fell.

Demand for terminal textiles has always been weak and it is impacting the upstream industry.

Looking at the dramatic ups and downs of the cotton market in the past two years, leaving us with more painful lessons.

With painstaking thoughts, companies in the cotton industry chain, especially cotton enterprises as intermediate links, should further sum up their views in depth. They must use a macroscopic perspective to look at the world and respect the laws of the economy. They must not just stare at the fundamentals of cotton varieties.