Shishi Textile Enterprises Actively Respond To "High Cotton Price"

Yesterday, Huachang weaving production of a number of new equipment officially started production. "One can top 13 workers!" Huachang weaving technical staff told reporters: "do not reduce production costs, enterprises almost no profit margins."

Reporters learned that increasing investment in equipment has become the consensus of Shishi enterprises. Insiders told reporters that this year's new rapier looms, computer looms and other new equipment up to hundreds of units. At present, more than 60% of Shishi textile enterprises have reached or are close to the international leading level.

This year, the upgrading of equipment in textile enterprises is much larger than in the past. Why? "In addition to labor shortage, another important reason is the rise in cotton prices." A business executive named Yang told reporters that cotton prices rose all the way since the end of last year. The average price of China's cotton price has risen from 10830 yuan per ton last November to 20.5% per ton in May this year.

In order to restrain the price rising trend of domestic cotton market and reduce the production cost of downstream textile industry, the state made an open bid for 33247 tons of cotton reserves in four working days on -31 May 25th. Due to the high auction price, the average daily spanaction price was from 12757 yuan to 13084 yuan per ton, the result was not satisfactory, the actual effective turnover was only 18638 tons, the turnover rate was 56%, and the effect of stabilizing the cotton market price was still limited. In May 31st, the cotton price index of China was 12779 yuan per ton in May 31st, which was only 12 yuan lower than that of the previous week.

There are two reasons for the rise in cotton prices. According to Mr. Yang, for domestic reasons, the cotton production declined last year, and the supply decreased by 10% to 20% compared with the same period last year. At the same time, cotton is now in the blue line. Last year's cotton was sold out, and this year's cotton will not come down until September. On the international side, cotton production has increased as a result of the significant reduction in the major cotton producing countries, coupled with the revival of textile industry worldwide this year.

"It has been estimated that the rise in cotton prices is short-term, and now it is medium to long term." The chief executive of Huachang weaving said that it is estimated that cotton prices will run high in the medium and long term, so he decided to purchase new equipment as soon as possible, hoping to maintain the living space of enterprises by increasing production efficiency and reducing labor costs.

The rapid rise of cotton prices has also rapidly spread to fabric and garment enterprises. Facing the challenge of increasing costs, Shishi enterprises have accelerated the pace of developing new products. "Old product prices are really not up to price. We can only invest more energy in new product research and development, and appropriately raise the price of new products to dilute production costs. For example, we launched 9 products in May, with great improvements in color and style. " A salesperson of cloth row tells a reporter, the sale of new product is good at present, basically can make up for the loss that cotton rises in price.