Cotton Prices Soar &Nbsp; Why Do Cotton Businesses Steal Pleasure?

2011/2/18 17:41:00 189

Cotton is an economic crop, so the price increase will directly affect the operating efficiency of downstream textile enterprises.

In the current round of cotton bull market, the biggest beneficiaries are just the textile enterprises.

Why is that?

Theoretically,

Raw material

The rise will inevitably bring costs to downstream enterprises, resulting in reduced profits.

Management

Decline in performance.

However, in 2010, textile enterprises generally increased at least 30%. The industry generally believed that the ten years had not been a good situation.

There are two main reasons: first, the cotton stocks of textile enterprises share the premium income of cotton price rise; two, the cotton price has led.

Cotton yarn

Prices rose, and cotton yarn rose far more than cotton growth.

Take 32S cotton combed yarn as an example, the difference between cotton and cotton has expanded from 8421 yuan at the beginning of last year to 13000 yuan at the end of the year, and even reached 17000 yuan.

That is to say, at other cost invariable conditions, textile mills at the end of the year will earn more than 5000 yuan per ton of cotton yarn per ton of cotton.

Cotton prices soar, why do cotton businesses steal pleasure?