Henan: Cotton Prices Are Rising Gradually And Enterprise Funding Is Tight.

With the steady uplift of Zheng cotton prices, spot prices in the market are also gradually rising. A textile manufacturer in Henan said that the price range of raw materials purchased at present was concentrated at 13400-13800 yuan / ton, compared with the price of 1000 yuan / ton in the early October, but it was limited by the price of downstream cotton yarn, and the profits of enterprises were relatively limited.

It is understood that the impact of Sino US trade friction, cotton prices in the second half of this year fell from 16000 yuan / ton to 12000 yuan / ton, the devaluation of raw materials inventory, resulting in a substantial decline in product profits, loss is inevitable. Until the new year, the raw material inventory has been replaced by old and new businesses, and the profits have been restored.

Henan textile enterprises said that the current raw material inventory turnover of enterprises in about 20 days, compared with previous years, the stock size has a significant decline. There are still more than 500 tons of cotton yarn inventory, which is mainly due to the limited purchasing power in the downstream market, otherwise the inventory is not a problem at all. Near the end of the year, most enterprises are going to reduce their stock prices in order to return the funds. This year, the textile industry is in a bad situation, and the banks have tightened their money supply, resulting in a very tight chain of funds for textile enterprises, especially the high priced lint purchased in the first half of 16000 yuan / ton until the end of October. Overall, the production and operation of enterprises in Henan is in a normal state. In accordance with the statutory holidays, some small businesses will arrange their holidays ahead of schedule.