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Impact of volatility in cotton prices still to shed off

20
Apr '12
Chinese textile enterprises have still not been able to shed the impact of volatility in cotton prices in the previous year.

Though current cotton prices are ruling around 19,000 Yuan / ton, there are still many textile factories which are still carrying inventories bought around 21,000 Yuan / ton.

At current cotton yarn prices, cotton textile units are losing around 1,500-2,000 Yuan / ton for yarn produced from higher-priced cotton inventories.

Cotton prices started rising September 2010 onwards. From a bottom of 18,000 Yuan / ton, they skyrocketed to nearly 34,000 Yuan / ton in April 2011.

Thereafter they began sliding and bottomed out at 19,000 Yuan / ton in December 2011. This was the most difficult period, cotton yarn units faced in their lifetime.

Fibre2fashion News Desk - China


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