Investigation Of Xinjiang Cotton Producing Area: Zhejiang Capital Prevents Bubble Cotton Boss From Tightening Price Limit

6 large trucks and more than 70 tons of seed cotton are unloaded and empty.

Constantly answering the phone, constantly asking for news, and rushing around in the countryside. In the past month, there were countless "Uncle" such as Wei Lian, and the six or seven men were partners in the boom of cotton prices, and they were shuttling in Xinjiang, the largest cotton producing area in China. They were haunted in cotton processing plants and fields. When they saw foreigners, they enthusiastically handed in a business card: cotton?

In September 27th, the owner of four cotton processing plants controlled by Zhejiang capital in Shihezi township was urgently ventilated on the phone. The next day, cotton prices were unified and depreciated by 0.1~0.2 yuan.

In fact, Zhejiang's capital in the whole cotton industry chain has been in a wait-and-see view. Whether buying cotton or not, the risk is like a volcano to be erupted, which makes people feel sleepless.

Cotton growers hoarding cotton for cotton spinning and processing

Xinjiang cotton which has been delayed picking has suddenly increased its value in the past half a month.

This basic industrial raw material was picked from the field and sold to cotton traders as a "seed cotton". They sold it to the cotton processing plant. After processing, they were handed over to the cotton mill and then to the clothing factory.

By September 28th, the highest price in history was 8 yuan / kg of seed cotton, the highest in Shihezi area has sold to 10.5 yuan / kg, the highest in Akesu area reached 11.8 yuan / kg, a 15 year high cotton price.

This does not mean that cotton farmers can make a big profit.

Qu Zujin, more than 50 years old, came from Youyang, Chongqing. Eight years ago, her family went to Xinjiang to rent 40 mu of farmers in Shihezi township for 400 yuan per mu.

In the afternoon of September 28th, he drove cotton to local processing plants at a price of 10.2 yuan / kg.

"Never met such a good price this year", counting the 3500 yuan notes, Qu Zu Jin wiped the sweat from his forehead. He said: the cost of land rent, water charges, pesticides, fertilizers, labor costs and so on is 1000 yuan per mu.

If one mu of land is good, it can produce about 200 kilograms of cotton. In this calculation, net income per mu is less than 800 yuan.

"Sell early and feel steadfast", said Qu Zujin. The more recent prices, the more worried he was, "when might I fall down?"

A few are sold, and more people are waiting to continue to raise prices.

When the "grandfather" nearly 20 years ago, Wei united not only has a lot of contacts in the local area, he also pays attention to network information, from time to time to see cotton futures prices, and even analyze the trend of international cotton futures, "we have become more and more difficult to harvest cotton below," he said. Sometimes, today we talk to farmers about 9.5 yuan / kg. Tomorrow, the other party will have 9.6 yuan.

Such a change, Shihezi Township Nur barkson village villager ziri Han, "Crazy".

In 2008, her family planted 12 acres of cotton, resulting in a sharp fall in prices and a miserable loss. In 2009, her family converted to corn (2008, -14.00, -0.69%), and this year the price of corn fell from 1.8 yuan / kg to 1.5 yuan / kg. "Next year, no land is planted, and it is contracted to other people," zirhan said angrily.

Her family failed to "step on the spot" and could not earn much money in a few years.

Cotton farmers are hard to see, and cotton processing plants and cotton mills are also suffering.

More than half a month has been bought, and Sun Cheng's cotton processing plant, more than 200 tons of lint (seed cotton processing products) pile up in the factory area, and can not be sold.

"According to the purchase of seed cotton at 10.4 yuan per kilogram, the lint of the processing plant must be sold for 24 thousand yuan / ton in order to guarantee the cost."

Sun Cheng said that after processing each ton of seed cotton, about 37% will turn into lint, about 50% for cottonseed and 7% for lint.

"2.6~2.7 kg seed cotton can produce 1 kilograms of lint, and if the lint is less than 24 yuan / kg, the processing plant can only lose money."

But this is almost the life of a cotton mill.

Zhejiang boss, who runs a cotton mill in Shihezi, told the daily economic news reporter that three days ago, he had gone to Xinjiang's main cotton producing area to investigate cotton prices closely. In September 28th, the lint price of Akesu in Xinjiang had risen to 24 thousand yuan / ton.

"We dare not buy it," the boss said. Some of the Zhejiang counterparts in Xinjiang are also watching. "We think the price of lint should not be higher than 20 thousand yuan / ton, otherwise cotton spinning enterprises will be hard to maintain."

The price difference of about 4000 yuan has put Xinjiang's cotton industry chain in an impasse: cotton farmers are reluctant to sell, cotton processing enterprises dare not buy cotton at high price, and cotton spinning enterprises are too expensive to wait and see.

{page_break}

Zhejiang capital prevention bubble part of cotton boss urgent "price limit"

In the face of what the outside world calls "Zhejiang's hot money speculation cotton", many cotton circles in Xinjiang smile lightly.

In 1998, China launched a prelude to the restructuring of the textile industry, and many capital entered Xinjiang.

"At present, Xinjiang's cotton processing enterprises controlled by Zhejiang businessmen have occupied half of the country, and Zhejiang's capital penetration into cotton spinning, clothing and other links is also rare." Sun Cheng told the daily economic news reporter that these Zhejiang businessmen are in different industrial chain links, and there are many cooperation between them. Once everyone starts to hype, everyone's interests will be damaged.

Chen Shiwen, executive vice president of the Wenzhou chamber of Commerce in Akesu, Xinjiang, said that as early as 2002, the private capital of Wenzhou had been heavily involved in the acquisition of Xinjiang cotton market. The so-called "billion cotton" Xinjiang "fried cotton" was completely out of thin air. Otherwise, Wenzhou cotton merchants who invested in factories in the main cotton producing areas could not be unaware.

Over the past few days in Xinjiang, many interviews revealed that although the government, researchers, cotton enterprises and cotton farmers have their own views on the reasons for the rise in cotton prices, speculation is only speculation and there is no evidence.

At a time when cotton prices were unusually high, some Zhejiang capital began to tug together to try to reduce business risks.

More than four Cotton Traders introduced that in September 27th, the boss of the local cotton processing plant controlled by the Zhejiang capital of Shihezi Township, on the phone, had emergency ventilation on the phone: the price of cotton in September 28th will be reduced by 0.1~0.2 yuan, in order to avoid the soaring prices and jeopardize the safety of the enterprises.

"If we go on like this, the risk of the company will be very large. The price limit acquisition is a must." in September 28th, an anonymous official invited the company to introduce a supply agreement with cotton mill every year. The cotton processing plant was then sold to cotton mill, but this year the processing plant has acquired nearly 200 tons of seed cotton, and 200 tons of lint are still stored in the factory area.

The nerve in the cotton processing plant is tight.

"The company's loan is about 10000000, and the interest rate per ton of cotton is 150 yuan per month," the official said.

"What is more fatal is that if cotton prices suddenly drop, the cotton that the company will buy at a high price will suffer huge losses."

Sun Cheng also said that cotton processing enterprises "do not buy only a dead end, risky takeover is gambling."

In September 28th, when participating in the "limited price" cotton processing plant, it was learned that on the 27 day, the highest purchase price of seed cotton was 10.5 yuan / kg, and the highest purchase price was 10.4 yuan / kg the next day, and the most traded price was 10.2 yuan / kg.

"If we ignore the risks and buy cotton at a high price, once the price falls, we will be ourselves down."

A deputy director of the factory said.

At the gate of the factory, tractor laden with cotton passes by.

The driver always stops to ask, "what is the price?"

"Less than they expected, they took off elsewhere," a more than 50 year old doorman was quite helpless. The 8 processing plants were buying cotton and which price was high. Who would buy the cotton from the processing plant?

At 5 p.m. on September 28th, the guard was repeating the words of the cotton grower in the face of the empty car driving back: what price? Many senior management of the processing plant asked: according to what you know, will cotton price go up again?

Following the soaring prices of garlic and mung beans, will cotton become the next hype variety? What causes the short term skyrocketing of cotton prices? One of the major cotton producing areas in Xinjiang, through interviews with the entire cotton industry chain and capital chain, will solve the mystery for you tomorrow.