Cotton Prices Rise 40% Down Hebei Many Small And Medium-Sized Textile Enterprises

Since last October,

The export situation of Hebei enterprises has been slightly better since October last year, but by chance, cotton prices are rising at the same time.

The small and medium-sized textile enterprises who had not had time to catch their breath were once again nibbled away. After a year, some enterprises eventually collapsed due to long-term malnutrition.

"Cotton last year, a ton of 13000 yuan, now has risen to about 18000 yuan."

In an interview with reporters, a cotton dealer in Nanpi, Cangzhou said that roughly calculated cotton prices had risen by at least 40% in the past year.

The rise in grain prices has become the biggest bright spot in the agricultural products market this year. In fact, domestic cotton prices have been rising continuously in recent years.

Especially in the near future, international cotton prices are approaching the peak of 15 years.

Affected by this, domestic cotton futures rose by more than 4% in August.

In contrast, China's cotton can not completely self-sufficiency, in other words, as the international cotton prices continue to rise, the future domestic cotton futures and spot market still has a higher upward pressure.

And for cotton as the basic raw material.

Hebei textile enterprises did not have time to "breathe".

With the view of Meng Hao, Shijiazhuang textile and Industry Co., Ltd., many enterprises have not even taken a good breath, and have begun to face greater pressure.

Under the impact of the international financial crisis in 2008, the textile and garment industry in Hebei was most affected.

Hebei textile industry association related personages said, Hebei province is the textile industry province, for a long time, textile enterprise's main market abroad, exports accounted for more than 80%.

Meng Hao told our reporter that as a foreign trader engaged in textile terminal products, he felt deeply about the pressure encountered by domestic and especially textile enterprises in Hebei.

For such terminal vendors, they also face enormous operational pressure.

"Financial crisis has led to a sharp reduction in foreign trade orders of Hebei textile and garment enterprises.

Last October, foreign trade orders began to grow. "

Meng Hao recalled that with the revival of the international and domestic markets, the demand for overseas markets has gradually resumed.

Foreign orders received by foreign trade enterprises increased significantly.

However, around October last year, domestic cotton prices began to accelerate significantly.

Statistics show that China's cotton price index has been showing a unilateral upward trend since September 1, 2009 to August 2010.

And reached a relatively high level in the past few years at the end of June this year.

This means that "these enterprises have not yet breathed their breath due to orders, and the upward pressure on upstream costs has followed."

Meng Hao said.

The rise in cotton prices is caused by "God".

A cotton grower in Handan, Hebei, told reporters that this year's cotton harvest is not good, and is now in a critical time to pick cotton.

In the continuous rain and rainy days, there are many rotten cotton bolls, which can harvest four hundred or five hundred jin of cotton per mu per year. According to this year's situation, one hundred or two hundred reduction is a normal thing.

In fact, the quality of cotton in Hebei is largely unable to meet the needs of textile enterprises.

Most of the raw materials used by textile enterprises are Xinjiang cotton or imported cotton.

However, not only cotton harvest in Hebei is not as good as in previous years, but according to incomplete statistics, recently, floods in some southern provinces have destroyed 9 million 200 thousand hectares of crops.

A market report predicts that this will lead to a reduction in cotton production in China by 5%-10%.

In addition, the main cotton producing areas in Xinjiang were affected by extreme weather at the early stage of sowing, and some cotton fields were replanted.

According to the industry forecast data, cotton production in China will reach 7 million 185 thousand tons in the next year, and consumption will remain at 10 million 669 thousand tons. Production and marketing will be 3 million 484 thousand tons, and the gap will be expanded by 218 thousand tons.

The key moment to continue to import the shortage of cotton is to hit the international cotton price.

The United States Department of Agriculture said that the harvest area of cotton farmers around the world will be the lowest level in more than 20 years. This judgment also directly led to the high price of international cotton.

According to the data from China cotton trading network, the price of C/A cotton from the US is 95.60 cents / pound, and the general port trade delivery price is RMB 17155 yuan / ton.

High cotton prices have left many small and medium-sized textile enterprises.

"The key problem now is that although the upstream costs are rising, we still have no price to go with our customers."

Meng Hao told reporters.

Shijiazhuang, a textile enterprise raw materials department chief, Gao told reporters, along with this round of more than a year of cotton prices rise, many enterprises have been "tighten their belts to live".

The person in charge told reporters that cotton spinning enterprises are labor-intensive enterprises with low profit margins. Generally speaking, profits can rise about 3%, and many enterprises have tightened their belts.

The person in charge told reporters that cotton spinning enterprises are labor-intensive enterprises, the profit margin is relatively low, in general circumstances can achieve about 3% of the profit is good, "take the grey cloth, a meter can rise a few cents is already good, most of the enterprises in Hebei are low-end products, the original sales volume is limited, there is no right to speak on the question of price rise."

Therefore, under the background of rising raw materials, the prices of finished products of most enterprises are forced to rise less than cotton, so they are basically in a state of net loss.

And some small and medium-sized textile enterprises are unable to bear the long term malnutrition, and finally fall down.

However, the head of a small cotton spinning enterprise in Gaocheng, Shijiazhuang, told reporters that the rise of small and medium textile enterprises has on the one hand the reasons for the rise in cotton prices. What is worth noting is that in recent two years, many enterprises can not recruit workers, and a large number of production lines and production equipment are basically in a state of discontinued production.

Interview, Hebei Tianlun textile Limited by Share Ltd, a Li surnamed staff told reporters that the current pressure on enterprises is not only from the rising cost of raw materials, but also the cost of employment.

The labor shortage in some time ago made the factory unable to recruit people. From the current situation, the employment situation is still not optimistic.