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The Cotton Price Of "Ba Ba" Makes The Cotton Textile Industry Totally Blocked.

2013/9/24 15:35:00 29

Cotton MarketSpinning EnterprisesCotton MarketTextile Industry

This summer, Wang Shumei, who was a car stopper in a cotton mill in Foshan, Guangdong, lost her job, because the factory she had worked for for 3 years was out of production. Wang Shumei, 43 years old, is worried that the whole cotton spinning industry is depressed. Many small and medium-sized enterprises have gone bankrupt, and the large enterprises that barely survive have even been demanding.


More striking than Wang Shumei was her boss, Chen Yuan (a pseudonym). The 50 year old man told reporters that although he was just a humble little boss, but the factory was like his own children, poured a lot of effort, but about 20000000 yuan investment has just been recovered for a few years, it no longer make money, more than 200 workers, just take care of the appearance, so suddenly dispersed, in the heart is very uncomfortable.


Chen Yuan Spinning mill There is only one reason why it can not go on: the high price difference between domestic and foreign cotton (low external height) makes it impossible for him to get the order.


Since the second half of 2011, the price of raw material cotton used by domestic spinning enterprises is higher than that of the international market, and the price of domestic yarns has been pushed up. Downstream weaving enterprises have abandoned the domestic yarn and chose the cheap imported yarn. A large number of spinning enterprises, especially small and medium sized enterprises, shut down and shut down. Some big enterprises, though still able to survive on high value-added products, are just trying to maintain them.


The cotton price of cotton bar has been blocked by cotton spinning industry.


   The difference between cotton price at home and abroad is about 4900 yuan / ton.


In September, the new cotton harvest season, hundreds of thousands of migrant workers went to Xinjiang to pick cotton. At the same time, the new cotton year (September to August of next year) began; in September 9th, the China Cotton Reserve Management Corporation (hereinafter referred to as "central storage cotton") officially started the temporary cotton storage and storage in 2013.


According to the national development and Reform Commission, the Ministry of Finance and the Ministry of agriculture jointly formulated the "2013 cotton temporary purchase and storage plan", this year, cotton temporary storage and storage prices remained unchanged in the previous year of 20400 yuan / ton. If the selling price of throwing and storing is also maintained at 19000 yuan / ton last year, cotton will continue to maintain a high price at home and abroad in the new cotton year.


Chinese cotton Spin In the first half of the year, the industry association reported that the average price of cotton at home and abroad was about 4900 yuan / ton in the second quarter of this year.


In September 13th, the price of the Chinese cotton price index "CCINDEX328" representing the domestic standard grade spot was 19137 yuan / ton; the international cotton price index "Cotlook A (FE) /1% tariff (Far East CIF)" was priced at 14220 yuan / ton, and the difference between the two was 4917 yuan / ton.


   The high price difference is due to the unique cotton circulation system brought about by the temporary purchase and storage policy.


In 2010, domestic cotton prices had risen sharply, to protect cotton farmers and stabilize cotton prices. In March 2011, the state implemented cotton temporary storage and storage system in 13 main cotton producing provinces, such as Xinjiang and Shandong. Textile enterprises need to store their stores in the middle of the country until they are able to buy national cotton stores through auction.


At the beginning of the implementation of the temporary purchase and storage policy, it really stopped. Cotton price Ups and downs of the roller coaster.


However, since the second half of 2011, affected by the European debt crisis and other factors, the international cotton price has been dropping from about 19000 yuan / ton to the current CIF price of 15000 yuan / ton. But the reserve price of national cotton storage and storage has been around 19000 yuan / ton, plus the fees, outgoing charges, transportation fees and capital interest after auction. In the past two years, domestic cotton prices have been hovering in the range of 19000~21000 yuan / ton for the past two years, and the cotton price difference between home and abroad is 4000 yuan to 6000 yuan / ton.


It hurts directly. Cotton spinning enterprise Competitiveness: the price of raw materials is so high that it naturally pushes up the price of cotton yarn, and naturally orders are lost. Some downstream weaving enterprises directly import India and Pakistan's medium and low end cotton yarn instead of domestic cotton yarn, plus customs clearance, transportation and so on. The cost is only ten thousand yuan per ton, but it is even more than 2000 yuan cheaper than domestic cotton per ton.


Huarun textile is a subordinate enterprise of Huarun group of central enterprises. Di Hui, deputy general manager of the company, told reporters: "it is not easy to receive orders and maintain production and sales balance with such a high price of domestic cotton. We can not talk about what profits we can make. Sometimes the company sometimes loses profits, sometimes it loses money. One reason why Huarun textile insists that cotton spinning business is not stopped is that state-owned enterprises should consider more employees' rice bowls, even if losses can not be easily stopped.


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"It's like giving a car to the other side when playing chess, obviously not in line with the international market and can't compete." Ma Xiaohui, general manager of Jiangsu Dasheng group, a leading cotton textile enterprise, said with disapproval. Quota locks imported cotton.


Domestic cotton prices are high, but the spinning mills can not freely choose to import cotton, because the cotton import quota system is parallel to the temporary purchase and storage policy.


In order to limit the impact of foreign cotton imports on domestic cotton market, since 2004, cotton quota policy has been implemented in China. Cotton spinning enterprises must apply for quotas if they want to get imported cotton. The national development and Reform Commission coordinates relevant departments. Cotton enterprises The scale and the quantity of cotton imports will be distributed to the enterprises free of charge, but not every enterprise can get quotas.


Chen Jiaolan, general manager of Guangdong Qingyuan Tai Tai Textile Industrial Co., Ltd., told reporters that some textile companies which did not engage in production were able to get a large number of quotas because of their larger models. Even some enterprises engaged in real estate and automobiles could get the quotas for imported cotton and sell them to small businesses for profit.


Under the premise of the national cotton auction, the current quota is 3:1. That is to say, 3 metric tons of state cotton can be allocated to 1 tons of cotton per auction. This ratio also makes textile enterprises suffer.


"If foreign cotton is" fine grain ", domestic cotton is" coarse grain ". Chen Jiaolan said that the quality of domestic cotton makes textile enterprises deeply unreliable. In addition to cotton in Xinjiang, the length, fineness and cleanliness of domestic cotton in other areas often fail to meet the requirements of spinning high count yarn. If an enterprise wants to buy imported cotton, it will have to save 3 times of domestic cotton.


Hubei Xiao Mian industrial group is a well-known enterprise in the industry. A person in charge of the company told reporters Tucao: "I have to make three thousand or four thousand tons of domestic cotton in a month. Recently, the cotton color has been yellow, and the colors of each bundle are not consistent. After that, there is a lot of opinions in a branch factory, so the quality is very difficult to control, so these cotton are not suitable for ordinary yarn."


No need to worry about quotas. Cotton spinning enterprise "Happiness index" is relatively high: cotton textile leading enterprise Tianhong Textile Group (hereinafter referred to as "Tianhong", 02678.HK) said in its semi annual report that the company's net profit in the first half of this year was 2 times higher than that of the same period last year to 447 million yuan, and the total profit in 2012 was 7 times higher than that in the same period last year, reaching 486 million yuan.


This is because the factories that have already been put into production in Vietnam are free to use imported cotton with good quality and low price. Only by the cost of raw material savings can we make a steady profit.


   But the vast majority of domestic Spinning enterprises There is no such strong strength to avoid risks overseas.


China textile industry It is the most competitive industry in the manufacturing industry. It has entered the international market at the earliest and has the most complete industrial chain.


The current cotton circulation system has a great impact on the industrial chain. The upstream cotton textile enterprises need quotas for importing cotton, but the downstream weaving enterprises can freely import cotton yarn. Last year, China's weaving enterprises imported 1 million 530 thousand tons of cotton yarn from India and Pakistan. According to Wang Tiankai, President of the China Textile Industry Federation (hereinafter referred to as "China Textile union"), the import volume of cotton yarn will exceed 2 million tons this year, accounting for 1/5~1/4 of the whole year's cotton yarn consumption.


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A large number of small and medium-sized cotton spinning enterprises have been shut down and died because of the high cotton price difference. According to Wang Tiankai's rough estimate, nearly 100 thousand cotton textile workers left their jobs in 2012. Wang Tiankai said: "if it is fair competition, how can our small and medium-sized enterprises fail to do India and Pakistan? We hope to promote the reform of cotton system earlier and truly form a fair competition environment through market mechanism."


"Some people suggest that our enterprises should adjust their structure, improve product quality and manage innovation. But this is a normal practice. With these methods, no effort can be made to digest the price difference of several thousand dollars. If at the same starting line, China's Textile enterprises No fear, but now if our spinning factories do export, they will surely compete no more than any other country in the world. Zhu Beina, President of China Cotton Textile Industry Association, said.

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