Sino US New Cotton Market Is Expected To Temporarily Resolve Pressure

The depreciation of the US dollar and the rise and fall of cotton prices, coupled with the rise in wages in China, will affect the capacity of the textile industry in some provinces. The price of polyester nylon is likely to slow down next year.

From February 2011 onwards, the effect of China's garment conversion to Southeast Asia will be obvious. Uniqlo, a well-known Japanese mid priced brand, has said that China accounts for 90% of the total production capacity and will shift from 50% to Southeast Asia in the future.

The clothing industry pointed out that the price of cotton and polyester yarn increased the average 1/3 share of the downstream weaving factories, garment factories and brand dealers. Recently, according to the news from the United States, the retail price increase of American apparel brands increased by 5% to 6% in November, and increased by 10% to 20%.

The latest industry news from China is that the new cotton harvested in the United States this autumn has been exported to mainland China, and the cotton produced by the mainland has also been listed as soon as possible. Although the quantity is unknown, the lack of cotton in the market is temporarily resolved, and the subsequent market changes deserve close observation.

China's development and Reform Commission has decided to curb cotton speculation; in 2009, the United States cut down planting because of low cotton prices, which caused a surge in cotton prices in 2010. In 2011, the United States decided to grow cotton fields, and it was expected that cotton prices could rise sharply. However, the supply and demand front could not be adjusted in time, and with the pursuit of speculative funds, cotton prices still had the opportunity to continue to rise. But cotton prices will surge back to doubts next year, and investors will have high risks.