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Spot cotton sales maintain downward trend in Hubei

07
Apr '08
The sale of spot cotton is continuously decreasing in Hubei Province, since last month. One of the key reason is that, procurement initiative of textile enterprises is not strong enough.

Further adding to the woes cotton ginners are holding cotton lint as they are waiting for good sales opportunities. Thus, the purchase and sales market is deserted.

However, looking at the current scenario some local cotton enterprises have gradually started selling the raw material.

The textile business has been sluggish due to financial pressure, so procurement of raw materials still adopts a pay-for-use manner, as a result lint turnover is still limited.

In March, the selling price of local lint (grade 3) was at nearly 13,500 yuan per ton, cotton grade 229 was around 14,100 yuan per ton for cash settlement. However, market transactions were relatively small.

Experts believe that, cotton ginners will have to face greater sales pressure in near future.

Fibre2fashion News Desk - China


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