Shandong Spinners Extend Payment - Slow Procurement
[2008-12-23 17:03:34]
Shandong Province is home to the largest cotton-spinning mills in China and is also the second largest cotton-growing province. The recent decision by Shandong's largest cotton spinner to extend credit terms and slow procurement surprised merchants and ginners. First, procurement prices paid by the spinning group are generally unchanged from the level that prevailed prior to the Nation Day Holiday despite the overall weakness in prices. The Grade 3 procurement price remains at 12,600 yuan per ton and Grade 2 at 12,800 yuan per ton; however, the requirement for BIE packaging is much stricter. In addition, some spinning plants within the group temporarily suspended procurement on October 7. Also, payment terms have been extended from 7 days to 20 days. These changes are being attributed to slow yarn sales, tight credit and spinner orders requiring the use of imported cotton for quality reasons.
Source: globecotnews
