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        The cotton outsourcing policy will remain weak in the second half of the year.

        Author:admin Click:859 Date:2019-6-11 14:58:00

        In 2015, international and domestic cotton prices remained low and oscillated under the global and abundant supply and the rise of the US dollar, the bottoming out of international crude oil prices, the favorable net sales data of US cotton exports and the long and short game of China's national reserve.


        In June, the International Cotton Advisory Committee (ICAC) made major adjustments to this year's inventory data. At the beginning of 2015/16, the inventory increased by 14,000 tons to 21.82 million tons. The ending inventory consumption ratio was 83.4%, which was 3.4 percentage points lower than the previous month and 6.2 percentage points lower than the same period last year. As for cotton sales, as of June 19, 2015, the national new cotton finance, delivery and processing were basically completed. The national sales rate was 76.4%, down 20.2 percentage points year-on-year. In May, the domestic textile industry gradually entered the traditional off-season, but the demand for high-grade cotton remained stable. The number of cotton imports was basically the same as that of the previous month, and the average price did not change. In terms of downstream consumption, the textile industry's peak season subsided in June, yarn and cloth sales weakened, and downstream apparel sales remained stable, but the year-on-year growth rate continued to decline.


        Overall, despite the decline in cotton production and imports this year, the reduction of cotton planting area in the new year, and the expected decline in production, cotton prices are still supported. However, at present, domestic cotton stocks are high, the reserve cotton outflow policy is gradually clear, and cotton supply is sufficient. As well as the poor performance of downstream textile and garment exports, the gauze market turned weak, the raw materials inventory of the textile industry remained low, and the cotton market was slow to purchase and sell, and other factors continued to exert cotton prices. In addition, the increase in imported cotton yarns also affected cotton to some extent. Future cotton consumption and the implementation time and policy plan of the outbound policy are the key to determining the next market trend. It is expected that the market will remain at a low level.


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