Textile Enterprises Shuffle Demand Decline, Cotton Prices This Year A Little "Hanging".

Another year's cotton harvest season, however, this year's 5.6 yuan / kg scale opened the cotton farmers a cool heart.

"The cost has doubled, and the price of seed cotton is going to rise. I didn't expect it to be lower than last year's scale."

Li Caijun, a cotton grower in Nanping town of Gongan County, said helplessly.

It is understood that Hubei, Xiangyang, Huanggang, Jingzhou and other major cotton producing areas have begun to scale, the average price of 5.3-5.6 yuan / kg, at present, the volume is very small.

Several large cotton farmers agreed that it would be profitable to sell at least 6.2 yuan per kilogram.

However, the attitude of cotton enterprises is also very clear: 6 yuan / kg is the ceiling price.

"When the purchase price is raised by 0.1 yuan, our cost will increase by 550-570 yuan / ton, which will not reach our psychological level and we will not accept it."

Tang Yingjun, general manager of Zhongxiang Poly Cotton Co., Ltd.

Liu Xiangang, chairman of Yingcheng Yinhai Cotton Corp, admitted: "this year the whole industry is stagnant, and all parties are making a profit. We can tide over the difficulties together and have a way out."

Liu Xiangang's difficulty is the impact of RMB appreciation on textile exports this year.

It is understood that as of July, more than 25% of the small cotton textile enterprises in China stopped production, and nearly 1.5-1.8 million home textile enterprises cut production, and domestic cotton consumption capacity dropped by nearly 30%.

The reporter learned from the provincial cotton association that the loss of cotton enterprises in the mainland was generally 800-1000 yuan per ton; on the other hand, because the agricultural development bank asked for loans to be "zero" before the end of August, nearly 20% of cotton enterprises had to cut meat or even close down.

"This year's game between cotton growers and cotton enterprises will not only lengthen, but also intensify."

Luo Yasheng, Secretary General of Hubei Cotton Association, analyzed that China's cotton production is expected to reach 7 million 600 thousand tons, a slight increase over last year, while textile exports are still declining. The state has issued a "rescue tax increase of 2%" and other rescue policies, but it is only a drop in the bucket.