Continuous Crisis: Cotton Spinning Enterprises Or "Cost Robbery"

Since September, Mr. Yu Yongchun, a salesperson, has been more and more busy. He has been visiting some important clients in Jinjiang, Shishi and other places.

The sale of its company in the second half of this year was ahead of schedule, nearly a month earlier than in previous years.

Mr. Guo is the head of a cotton yarn enterprise in Quanzhou, and Yongchun's Xiangsheng textile, Jinjiang Xincheng group and Baikai textile are all their customers.

"In previous years,

Last week, the price of high-end products such as J40S, J60S and all cotton yarn fluctuated again, and the price of synthetic cotton yarn continued to rise. This seems to confirm the prediction of cotton spinning enterprises and exacerbate their concerns.

The situation of "new cotton production and cotton prices" will not appear this year. In the coming season, local cotton spinning enterprises will encounter another round of "raw material cost robbery" again.

Cotton prices rose hard

"It was thought that the release of the national cotton reserves could slow down the market pressure, and anyone who thought of a round of auction would have a counterproductive effect."

Jin Tao, deputy general manager of Fujian Baikai Textile Chemical Industrial Co., Ltd., sighed with emotion.

In order to curb the rise in cotton prices, the government began to extend its regulation and control. In early August, the state began to put the national reserve cotton into the market.

Reserve cotton prices started at a lower price of 16500 yuan / ton, but after a round of auction, the final market price reached a maximum price of 18200 yuan / ton, which once again raised the newly stabilized cotton prices, and further led to a slight decline in cotton yarn prices to enter a new wave of peak growth.

According to Kim Tao, the auction results show that cotton has become a manipulative agent in some market intermediaries, and this is also the view of most cotton spinning enterprises.

But as

"The surge in foreign orders this year has stimulated the demand for cotton by textile companies, while domestic cotton production has been reduced due to weather and other reasons.

At the same time, as India and other major cotton importing countries have introduced their own protection policies, the quantity of imported cotton has also decreased a lot.

The imbalance between supply and demand has naturally raised the price of raw materials.

Under the influence of cold and rainy weather, the spring sowing time of the main cotton areas and parts of the Yangtze River Basin in the the Yellow River basin was generally delayed one to two weeks, and the main cotton areas in southern Xinjiang suffered from frost and storm rain in the main cotton areas, and the area of the cotton seedlings was greatly affected.

These are the real drivers of cotton yarn prices.

Stupid wants to go up

The price rises or starts at the end of the month.

Whether the new cotton that will be released will alleviate the pressure of market supply and demand? For this problem, most cotton mills and cotton yarn suppliers have reached a consensus.

After having experienced the embarrassment of reserve cotton, they are not as hopeful and expecting as the previous year, but they are not optimistic.

"According to the current domestic output, there is still a big gap between the supply of new cotton and the market demand."

Mr. Guo and other cotton yarn suppliers believe that even if new cotton is listed, the imbalance between supply and demand of basic cotton will not change in the near future.

This has also raised concerns among cotton textile enterprises: the textile industry will enter the peak season in the second half of the year, and the amount of cotton will be larger.

If the supply is insufficient, the new cotton market is afraid of the embarrassment of reserve cotton again, which will cause the price of cotton yarn to rise again, and the cost burden of the enterprises will continue to intensify.

The performance of the market in advance confirms Guo's prediction, exacerbating the concerns of cotton spinning enterprises.

According to the "China light textile raw material city cotton yarn and chemical fiber yarn price list" data, since September, J40S, J60S and other high-end cotton yarn has exceeded 31000 yuan / ton and 36500 yuan / ton respectively.

In Jinjiang, Xincheng and other large enterprises also received quotations from upstream suppliers: cotton yarns will be raised again in the near future.

"In fact, as far as our circle of Quanzhou is concerned, several cotton yarn factories have begun to raise their prices slightly since entering the September.

But for the whole industry, it is still in the brewing stage.

It is estimated that by the end of September, not only high-end cotton yarns, but also a series of cotton yarn products will be launched.

An upstream supplier of cotton yarn in Xinjiang revealed.

As for the price increase, cotton yarn suppliers have indicated that the new cotton market will fluctuate after the listing.

However, there are suppliers predicting that although the market outlook is uncertain, cotton prices are expected to remain within the range of 2000 yuan / ton this year, considering that cotton prices have risen to a certain height.

Multi form filling to avoid "cost robbery"

Faced with the seemingly inevitable "cost robbery", cotton spinning enterprises also moved quickly at the same time, and through various forms in advance to reduce the cost pressure.

In the early September, Xiangsheng textile, one of the largest cotton spinning enterprises in Yongchun, bought 1000 tons of cotton yarn, making its cotton yarn reserves reach 2000 tons, enough for two months.

The company's move has also made its Quanzhou counterparts more determined to make up their positions.

Today, Xincheng is planning to purchase raw materials as reserves again, but in fact, more than two weeks ago, Xincheng just bought a batch of cotton yarn.

From the sales data provided by Mr. Guo, the cotton textile enterprises' customers on their hands have been storing raw materials for 1-2 months.

Baikai textile chemical fiber began to make up more than a month ago.

In addition to general direct storage of raw materials such as colleagues, Baikai textile also uses a reserve grey cloth to implement double guarantee.

"Every 7-8 months, the textile industry will be relatively weak.

But in the past two months, our workshops are still busy, mainly using this time to do a certain amount of inventory according to the needs of customers in previous years.

On the one hand, in order to slow down the production pressure during the peak season, on the other hand, it can also avoid the fluctuation of raw material prices.

Jin Tao said.

In addition, in order to ensure the supply of cotton, many powerful textile enterprises invest in main cotton producing areas and directly integrate upstream raw material resources to reduce cost pressures.

Earlier, some media revealed that Shishi four textile enterprises will invest in Xinjiang recently, docking with 4 cotton production enterprises in Xinjiang, signing the contract of "cotton production and marketing and cotton spinning production base project", and establishing a stable purchase and sale relationship.

If the investment is successful and the vertical integration of the industrial chain is realized, enterprises can not fear the rising price of cotton or cotton yarn.