Enterprises Face: Cotton Prices Soared &Nbsp; China'S Textile Industry Is At The Forefront Of Life And Death.

In the financial crisis, after the impact of RMB appreciation, silver contraction and export tax rebate, the severely damaged textile industry is now suffering from the rising or even shortage of raw materials.

However, with the rising of raw materials, many local governments started large-scale sluice and power rationing in order to achieve the goal of energy saving and emission reduction in 11th Five-Year.

For the current situation faced by the textile industry, many industry insiders believe that the textile industry will fall into a large area of production or stop production. Wang Wei, deputy director of the consumer goods industry department of the Ministry of industry and information technology, bluntly said that the textile industry has been in trouble again.

Raw materials are soaring.

"Cotton prices have risen by 20% in 4 days. The pmission of such prices will soon be carried downstream, and the pressure of textile enterprises will be great."

In September 20th, Wang Wei said in an interview with reporters.

According to statistics from the Ministry of industry and information technology, the profit of the textile industry increased by 61% over the first half of the year. However, the good year is only a flash in the pan. Under the pressure of cost and power limitation, the textile industry is facing the trend of high and low with the Chinese economy.

"The biggest problem that threatens the textile industry is now.

Hebei Shijiazhuang Changshan Heng Xin Textile Company Market Manager Su manager is anxious for the rapid rise of cotton, "in the recent 4 days, we purchase the 4 grade cotton price has risen from 18000 yuan / ton to 22400 yuan / ton, and the 5 grade cotton price has also broken through 20000 yuan / ton."

It is understood that after September 20th, the US cotton futures rose sharply, while the Zhengzhou futures exchange cotton futures showed a daily limit.

So why are cotton prices so high? What are the reasons for the rise?

The reporter understands, the reason that causes cotton price to rise all the time is multifaceted.

On the one hand, due to the low cotton prices in 2008, cotton growers' confidence was frustrated and the planting area was reduced.

Statistics show that in 2009, China's cotton production was 6 million 400 thousand tons, a decrease of 1 million 100 thousand tons compared with 2008, a drop of nearly 15%.

On the other hand, last year, cotton production in Xinjiang and other major cotton producing areas decreased by nearly 1/4 due to climate disasters and other reasons, which further aggravated the contradiction between supply and demand imbalance.

At the same time, the international cotton price is also on the rise, while cotton exporters such as India have suspended cotton exports, and cotton prices are unlikely to fall in the short term.

In addition, demand is also a major reason for the rise in cotton prices. China's textile industry has continued to stabilize and pick up in the second half of last year. In 2010 1~2, domestic yarn production increased considerably, up 26.52% compared to the same period last year, and the operating rate and orders of enterprises were much better than that of the same period last year.

Because of the purchase.

Obviously, the situation of textile enterprises' profits is still taking place. "The hardest part now is that the contract we signed earlier must also meet the price before the price rise, which has been in December."

Su manager said helplessly.

Driven by the rising price of cotton, the price of chemical fiber has also risen sharply.

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In Wang Wei's view, textile enterprises are facing not only the problem of high cotton prices, but also the shortage of cotton supply next.

Wang Wei's view coincides with that of Mao Shuchun, an expert in the Cotton Research Institute of the Chinese Academy of Agricultural Sciences. According to Mao Shuchun, by the end of 11th Five-Year, even if the cotton planting area is increased by 10 million mu on the basis of the existing about 80000000 mu, the annual import volume of cotton in China still needs to reach 4 million 500 thousand to 5 million 500 thousand tons, so that the balance of production and demand will be realized. At this time, the dependence of cotton will increase to 36% to 40%.

For the strong Chinese textile industry, cotton resources have entered a strategic shortage period.

"Domestic cotton shortage is not only related to weather reasons, but also related to farmers' reluctant sale, and farmers are reluctant to sell when all kinds of agricultural products are rising."

One industry insider said.

Textile industry or production stoppage

However, the downstream garment industry is still optimistic about its surface and does not know the danger is approaching.

The China Textile Industry Association recently released the "2009~2010 China Textile and garment enterprise competitiveness analysis report" shows that the top 10 enterprises in the apparel industry have the highest profit rate of 10.46%, while the average profit margin of the top 10 enterprises in the knitting industry is 10.36%.

Wang Wei explained to reporters why the current textile and garment enterprises profit. "In the second half of last year, the cost of raw materials was low. Now the raw materials of textile products are mostly purchased during that period, which has created a good profit margin for enterprises in the first half of this year, and now there will be many uncertainties."

A garment manufacturer told reporters about their profit reasons. "In the second half of last year, the price of down is 100 yuan per kilogram, half of it is cheaper than in 2008, and the price of terminal down clothing has not dropped. This has created a very good profit margin for us."

However, such a scene did not last too long. "Now the price of the down has increased to more than 200 yuan per kilogram, the cost of fabrics is also rising, the profit of processing down garments is greatly reduced."

It is understood that the winter clothing is one of the most profitable garment processing products in 2009.

Su manager of Changshan Hengxin marketing department is somewhat confused about the current situation. "I don't know what the price of raw materials will go up to, but we dare not act reckless."

He said.

It is reported that due to the restriction of cotton supply and price, a large-scale production of cotton mills has been staged in Shandong.

In accordance with the law of price rise, the price rise of cotton will drive the price of gauze to rise, and then the price of clothing will rise, which will probably be reflected before and after the Spring Festival.

Su said, "if the downstream can not accept the high price, then we can only stop production and reduce production."

Textile industry tax cuts to come out

The pressure of raw material cost is only one of the pressures faced by the textile industry.

At present, the local governments are under the pressure of energy conservation and emission reduction targets, and have taken measures to limit the power of industrial enterprises.

It is reported that in some textile enterprises in Zhejiang, according to the power consumption of different equipment, "according to the requirements of energy saving and emission reduction, the production will stop for 50 days, and the bomb will be shut down for 20 days."

At the same time, 19 textile enterprises in Shandong were also shut down.

In fact, as early as 3 months ago, Wang Wei said in an interview with our reporter, "at the end of the year, the local government will take power restriction to achieve the targets of energy conservation and emission reduction, especially for the light industry in the textile industry."

At that time, the reporter conveyed this idea to the textile industry and investment companies, but many futures analysts did not "move" after hearing the news. They thought it was impossible to pull the electricity off.

However, three months later, a number of local governments began to slam the electricity in order to complete the task of energy saving and emission reduction.

For local governments in order to accomplish the targets of energy conservation and emission reduction, and to limit the electricity to the industrial enterprises, we are very opposed to it, but it is not easy to intervene.

Wang Wei was sad about all this, but he could not do anything about it.

In order to ensure the sustainable development of China's textile industry, the Ministry of industry and commerce is formulating macro policies to ensure a good development environment for the textile industry.

According to the reporter's understanding, the policy will mainly help textile enterprises to develop continuously from reducing taxes.

The textile industry has always been an important pillar industry of China's economy. The annual export volume accounts for 1/5 of the total foreign exchange earnings earned by China's merchandise exports, and the total employment population exceeds about 20000000. Most of them are migrant workers, and are considered to be related to the national economy and the people's livelihood.

Editor's note: eleven, at present, the crisis is not reduced. As an enterprise, we should really plan ahead. After eleven, how to deal with the continuous rise of cotton prices? How to get higher profits in the current economic environment? How to better establish our brand?