Chapter 2551: New Market Prices

"Two Comrades, allow me to excuse myself a bit." Li Qiwei cupped his hands to the two.

"You busy first, business is important." Li Shan said politely. Saw this Li Qiwei stepped forward to unfold cloth, another operation following the same method: shaking head and picking thorns, after a round of bargaining then quoted: "Earth Cloth two bolts total three jiao four fen six wen."

"Why did cotton cloth fall?" Retail household asked somewhat surprised hearing the quote, "My neighbor came to sell yesterday, still sold for two jiao a bolt!"

"No plan [can't help it], this month cloth is much more than monkeys." Manager Li had a helpless expression, "Besides, you are cloth woven from Earth Yarn, market is worst! Now no one on the market wants it..."

"Boss! Do a good deed, can you raise another fen? Five wen is also fine!"

"Brother, you think how big my business is! Still have this rent, still have waiters..." Li Qiwei had a bitter melon face of "about to be unable to support," "Just earning a moving fee. If you want selling price good, buy Machine Yarn in the future, at least buy Improved Yarn to weave cloth!"

"Machine Yarn price is expensive; our village has cotton, self-spin self-weave, buying yarn is not calculating [cost-effective]..." Weaver shook head repeatedly.

The next few cloth sellers, slashed by this Manager Li wielding Dragon Slaying Saber, all returned in low spirits. Just as called coming in high spirits, returning in disappointment.

"Look, does this have the meaning of 'Harvest Two or Three Bushels More'?" Zou Biao poked Li Shan.

"Wait until later, afraid this will be normal state." Li Shan whispered. He was secretly surprised in heart; didn't they say cotton cloth price rose quite a bit? Looking at this appearance, price was falling.

Li Qiwei finished work at hand, hurried over to accompany. Serving tea again, taking out cigarettes again. Li Shan looked: still Holy Ship Brand! This shop owner was really a particular person.

Li Shan had doubts about cotton price, so asked: "This cotton cloth market fell? I watched yesterday it was still rising..."

"Yesterday indeed still rising. But today market changed." Li Qiwei saw they all refused cigarettes, brought a plate of betel nuts again—the two declined this thing even more.

"What situation?" Li Shan asked.

"Originally cotton cloth had a Big Buy Order every day. Quantity not fixed, but even the smallest order, no single family in the market could eat it alone; all several families sharing to eat." Li Qiwei said, "But day before yesterday this Big Buy Order didn't come out, didn't buy a single bolt..."

Zou Biao frowned: "Whose Buy Order?"

"Nanyang Company." Li Qiwei said, "From market opening, its family kept buying in. Not only large quantity, wanted all cheap coarse cloth, lifted price up at once. Everyone seeing market so good, all followed..."

Li and Zou both recalled a joint notice issued by Administration Council and Planning Institute last year: to promote market economy and private manufacturing, regarding material procurement, whatever can be purchased from market, purchase from market as much as possible, instead of going through internal allocation settlement channels.

"Then why stop buying?"

"This isn't known. Approximately bought almost enough too." Li Qiwei said, "Day before yesterday Nanyang had no Buy Order, only zero and star [scattered] small Buy Orders. Everyone hoped it would issue Buy Order next day. After all, heard they have immigrants in Jiaozhi and Nanyang. Heard want to emigrate ten thousand. Just making clothes and bedding for immigrants would need buying ten thousand bolts of cloth..."

Zou Biao couldn't help asking: "Who did you hear from that Nanyang Company wants to emigrate ten thousand?"

"Everyone in market spreads so." Li Qiwei sipped tea, tasted flavor, "True or false I don't know either. But Nanyang Company buying so much cloth, can't be for hoarding; must have a destination..."

"Day before yesterday no Order, yesterday probably none either?"

"Exactly, so today once market opened, coarse cloth market fell..."

"Fell how much?"

"Like this Earth Cloth made of Earth Yarn, yesterday I collected still two jiao; today is one jiao seven fen three wen. Directly dropped two fen seven wen..."

Li Shan calculated roughly; drop exceeded twenty percent. Unconsciously stunned. This was too fierce!

In Guangzhou, two yuan was enough for a family of four to maintain most basic livelihood. One bolt of cloth earning two fen seven wen less was already not a small amount.

"The cloth you collect, can distribute now?"

"Can. Earth Cloth cheap, easy to distribute." Li Qiwei said, "As long as price is in place, always someone wants." He pointed to cloth piled in warehouse behind, "Don't look at Earth Cloth appearance ugly and coarse. People loving to use really not few. Peddlers going to countryside all like to come to me to wholesale goods."

"Besides no Big Buy Order, any other reasons?"

"Cloth on market increased, naturally fell." Li Qiwei said, "Now is end of June. Next month Portuguese merchant ships come to Guangzhou; then large batch of Indian cloth arrives at port. Market cloth price will drop another wave. So this market, only will continue to go low..."

Source sufficient, market expectation bearish, price naturally falls. This is the simplest logic.

When Li Shan asked about "Machine Yarn," Li Qiwei praised: "This is truly first class good yarn! Uniform, fine, tough; hanging on loom to weave also smooth, not easy to break ends. Cloth made is also fine! Many workshops and weavers are willing to buy Machine Yarn to weave cloth. Although price more expensive, cloth woven is much better than Earth Yarn cloth!"

"Then why does everyone still use Earth Yarn?"

"Price high!" Li Qiwei looked at him with a strange expression, "Everyone knows Machine Yarn is easy to use, but this price is much higher than Earth Yarn. Besides, farm family Earth Cloth is mostly self-spun self-woven. Spin how much yarn allowed by current cotton, weave how much cloth; extremely few buy cotton yarn from outside."

Seems Machine Yarn and Improved Yarn input didn't shake Earth Cloth market. Zou Biao knew, now Machine Yarn production limited, still at "Premium Quality Premium Price" state. Earth Yarn as rural sideline relied on near "zero" labor cost, could still occupy low-end market with very low price. Machine Yarn to defeat Earth Yarn, still had to rely on larger scale, lower production cost...

"Does local yarn have separate trading?" He continued to ask.

Generally speaking, commodities under feudal economy were mostly self-produced, self-used, self-sold from raw material to product; one dragon [integrated]. Most commodities were also used as tax. So semi-finished product trade was actually relatively rare to see.

"Of course. Before Machine Yarn, cotton yarn was all spun by farm families themselves, self-spun self-woven. Families without looms sold yarn—Old Sir probably also knows, spinning yarn uses no capital, just having cotton at home is fine..."

Most primitive spinning method didn't even use hand-cranked spinning wheel; a drop spindle could spin yarn. Input needed was just cotton and manpower. But weaving was different. One loom, few taels of silver at least, tens of taels at most; ordinary farm households could rarely afford to set up.

So local Earth Yarn always had circulation, just circulation scope was very small, furthest not past nearby market towns. Small Cloth Shop merchants like Li Qiwei initially went to market towns in various countrysides to acquire cotton yarn, credit to small weaving households, then buy back cloth they wove.

"...Originally my family collected yarn and also collected cloth, but now only collect cloth. Yarn credited out, if can't collect back cloth for one picul, loss is big. We are small capital operation, can't afford loss."

"Are there big batch purchases of yarn locally?"

"Yes. Big Cloth Shops do. People have ample capital, also government or gentry big households backing up, not afraid you weaving households don't hand in cloth."

"Then, are there big batch sellers of yarn?"

"This hasn't been seen. Speaking of which, Australians selling Machine Yarn in big batches, count as the first family."

Just talking, waiter brought a piece of paper. Turned out to be "Market Dynamic" printed every afternoon by market. Li Qiwei looked, sighed: "Fell again! Even cotton yarn market fell! Seems tomorrow market will be more miserable."

Waiter said: "Manager! Want to stop collecting cloth..."

"Don't stop first," Li Qiwei pondered a moment, "From now on, no matter what cloth, adjust down five wen per bolt... no, five fen!"

"So? Fell again?"

"Correct, this time is full line fall!" Li Qiwei casually handed business sentiment paper to Li Shan, "Not only cotton cloth fell, cotton yarn fell, even cotton started falling... This is terrible..." He suddenly remembered something, called a waiter: "You go back to city immediately, tell Uncle-in-law, sell all Paper Cotton in hand immediately. No matter how much money now, sell immediately, not leaving a single sheet!"

Li Shan looked at market, sure enough cotton category market all fell. Looking from amplitude not considered specially big, but appearing such full line fall was first time since opening market. Two instantly became nervous. Hearing Manager order selling Paper Cotton, Li Shan couldn't help asking:

"What? You also bought Paper Cotton?!"

"I didn't buy, my that Uncle-in-law bought!" Li Qiwei face showed anxiety color, "My wife roughly also threw her private money in..."

"Heard Paper Cotton rose several times a day. As long as your Uncle-in-law's Paper Cotton was bought past few days, dumping now is still earning."

"Two Comrades say right," Li Qiwei anxiety reduced slightly, "I only fear he covets petty gain, unwilling to dump in time! After all, this Paper Cotton had fall in past days, later rose back."

"Then how do you know won't rise back this time?"

"Need this be said. Right now cotton cloth cotton yarn full line price drop. Cotton which can only be delivered months later and don't know where it is, how can it not drop? Once Portuguese merchant ship arrives, Indian cotton cloth unloads into market, this cotton cloth market will drop faster and more. By then this Paper Cotton afraid will be just a sheet of waste paper!"

(End of Chapter)