Cotton roller coaster, spinning

In the past year, cotton prices have taken a “roller coaster ride” and have plummeted after soaring. Although the cotton price has returned to its original point this month, the cotton price will still face greater uncertainty in the latter part of the year. Cotton has become another "crazy" agricultural product after "beans" you play and "garlic" you.

The cotton price has skyrocketed and plummeted, and the most tangled textile companies in the industry chain. At present, the overall situation is not optimistic, textile companies as a whole are in trouble, many companies limit production, stop production, the difficulty is no less than in the financial crisis in 2008.

The roller coaster-type surge in cotton prices has actually hurt textile companies. Inventories of textile companies have increased and sales have been difficult, and it has been difficult to maintain normal operations. When the yarn price went up, there were fewer orders from textile companies, the yarn price fell, and the downstream wait-and-see mood was strong. Purchases were not positive, and cotton yarns were heavily sluggish and stocks soared.

In the 2008 financial crisis, the exchange rate and the cotton price were stable, the cost was predictable, and the price was controllable. Today, it is well known that the US debt crisis, the European debt crisis, and rising labor costs have made this year's predicament worse.

In this dilemma, how can we respond positively and people in the industry have given us several opinions:

Diversified development, adjustment of industrial structure The dependence of textile enterprises on cotton cannot be ignored. If we want to get out of the current difficulties, it is undeniable that we increase the proportion of non-cotton products, develop some new functional products, and expand the application of products. field. Today, with highly developed technology, cotton is not the only fabric material we can choose. Products such as wool, linen, silk, and man-made fibers can replace cotton as a raw material for textiles. These alternatives may be difficult to replace with cotton, but it is still possible to maintain a relative balance in the current situation. If we can use less cotton and reduce dependence on cotton, textile companies will be less affected by fluctuations in cotton prices.

Strengthen internal strength, improve the quality of their own products, natural selection, survival of the fittest. The current predicament is also a test for textile companies. It is both a challenge and an opportunity. If textile companies can reflect on themselves and start improving their product quality to cope with the crisis, it is a good strategy. Make products fine and fine. Continuously develop new products, introduce new products, enrich product styles, adapt to market demands, and minimize the impact of cotton prices.

At the same time, relevant industry sources also proposed that actively responding to the "roller coaster" of cotton prices, the control mechanism is indispensable. In recent years, the country has also adopted macro-control on the cotton market through methods such as reserve cotton handling. The regulatory mechanism in the future needs to be further improved to ensure market supply and play a greater role in stabilizing the market.