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Cotton Prices, Both Inside And Outside A Weaker Textile Enterprises To Stock-flow

Recently, cotton textile and raw materials market demand remains in the doldrums, plus cotton reserves put sold cold, accelerating domestic cotton prices downward, while the international price of cotton at the beginning of July after a brief climb down quickly, factors that stimulate the rise in international cotton prices remain weak. From the perspective of the trend of price, as of August 5, 328-price cotton to plant 13185 Yuan/ton, was down by 280 Yuan/ton last month, a reading of 72.1 cents/pound, folding 1% tariff price of 11295 Yuan/ton, down from the previous month of about 340 Yuan/ton; cotton inside and outside price difference of about 1900 Yuan/ton.

Cotton row coordinate research situation, gauze sales slow in the near future, industry as a whole a result in poor condition, and part of the enterprise in the past two years order and declining profits ultimately chose to stop. Relatively normal business operation in order to avoid homogenization of competition, further increase the proportion of blended products, cotton products prices rapidly downward, product inventory pressure. From procurement of raw materials situation, current spinning companies maintain ad-buying, in order to reduce the risk of devaluation of the stock from falling cotton prices, cotton stock generally does not exceed 15 days. Product inventory for about 1 month, to ensure continuity in the cash flow of enterprises, or take the form of sales to keep inventory levels low.