Central Reserve Cotton Began Selling State Reserve Cotton Because Of Rising Cotton Prices

　　 At present, many manufacturers are faced with this situation. Cotton spinning enterprise And even worse. The head of the Hongli County Hongli Cotton Industry Co., Ltd. tells us that at present, they produce a loss of 2000 to 3000 yuan per 1 tons of cotton yarn. In this house enterprise In the production workshop, we found that half of them were Spinning Machinery It's empty.

Hongli, deputy general manager of Hongli cotton industry, tengyunlang: because my purchase amount is not enough, I can't eat enough machines. I only accept dozens of tons a day, but we can eat the machine. If we can open all two classes a day, I can approach 300 tons.

Tengye Lang also told reporters that because of the rising price of cotton raw materials, resulting in the production of lint and cotton yarn also had to rise, but almost no one downstream enterprises dare to accept the plate, at present, cotton is facing a situation of no market price.

Tengylang: this year, I have not received a list to negotiate with us about lint.

Reporter: what happened at this time in previous years?

Tengylang: in previous years, I contracted out at this time in the past year, nearly 30% of the total output.

Wang Bole: our buyers are not so active. The downstream customers are not so active. He means or I push them for a week.

Reporters in the survey learned that in the face of this year's record breaking cotton prices, many cotton processing enterprises are cautious and wait-and-see attitude. Whether to accept or not to accept is the plight faced by many enterprises. However, during the visit, the reporters also found that some cotton purchasers were very aggressive in buying cotton in large quantities. At four o'clock p.m., the door of the cotton acquisition point was empty, but a new cotton car was waiting for testing and loading and unloading at Xinyuan cotton Co., which was separated from more than ten kilometers away.

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: we charge a large quantity.

Reporter: why do we need to receive large quantities?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: because good cotton only has this period of time, after that, there will be no good cotton.

So we collected a lot.

Reporter: how much is it?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: how much is it?

Interviewer: how much did you accept today?

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: more than 200 tons today.

The cotton growers at the gate told us that the purchase price of cotton here is 3 to 5 cents higher than anywhere else, so many cotton farmers are willing to pull the cotton here.

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: our cost so far is generally higher than the market, we are not high.

Reporter: why?

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: we have received much earlier, but it is cheaper in the early stage. 10 yuan, we also have 800, 900 tons, 11 yuan, we have collected more than 1000 tons, so that we are better than others on average.

In Zhang Yuesheng's view, the trend of cotton prices in the future will continue to rise.

Zhang Yuesheng, Xinyuan Cotton Industry Co., Ltd.: I see that the market price is going up.

Reporter: never fall?

Xinyuan Cotton Industry Co., Ltd. Zhang Yuesheng: absolutely will not fall. Because there is a lot of demand, this year's cotton is somewhat less than last year, so we have to rush to collect time.

But Wang Bole, who has 15 years' experience in cotton spinning business and holds the post of Secretary General of the Zhejiang chamber of Commerce in Akesu, looks forward to the unpredictable trend of cotton prices in the future.

Wang Bole, chairman of Akesu Tong Wang Textile Co., Ltd.: Frankly speaking, we dare not say this year's scenery this year. Next year, we will say how to go next month. At present, we can see that our textile chain can smoothly marry the cost to weaving, weaving and then getting married to garments. This is a process.

Today's cotton market seems to have proved a popular saying, not the highest, only higher. Faced with rising cotton prices, cotton growers are happy, dealers continue to catch up, but downstream processing textile enterprises are uneasy. Because soaring cotton prices not only mean that their costs are rising, but also mean that industrial risks are gathering to them. How can the downstream enterprises face the cotton price change this year?

The reporter came to Qingdao, Shandong Province, that is, Sheng Bao Textile Co., Ltd., general manager Wan Gang is on the phone with the suppliers.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: how much is it?

25900, it's too expensive. 25900, you sold 18000 a month ago, now you sell 25900.

Wan Gang mentioned on the phone that the cotton is the US SM grade cotton that has just arrived at Qingdao port, which is only three grade cotton in China. It is considered as a relatively common cotton in China. The price of Xinjiang cotton has almost doubled compared with the same period last year. Wan Gang wants to cut costs by importing cheaper cotton. But he found that such cotton became more and more difficult to buy.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: and now, there seems to be a shortage of resources for performance. That's how much you want to buy, not how much you want to sell.

There are more than 10000 managers with similar feelings.

Qingdao's hi Ying Home Textile Co., Ltd. Lu Liang Cun: the price of cotton yarn has increased by 70% to 80%.

Qingdao Luxi Liang Home Textile Co., Ltd.: now (cotton yarn price) to 40000 yuan per ton, the lowest time is 21000 yuan per ton, up almost 100%.

According to the introduction, the signing period of textile enterprises is shorter than a month, and the length can be up to one year. And when the enterprise is signing orders with customers, the main consideration is the price of raw materials at that time.

Wan Gang, general manager of Qingdao Sheng Bao Textile Co., Ltd.: we have received all orders this month in advance. If the delivery is performed according to the contract, it is actually a loss. We calculate that it is a common loss of 3 thousand yuan per ton of cotton yarn.

The steep rise in cotton prices has brought great pressure to the enterprises, but what is even more painful to them is that cotton prices are rising very fast and unable to form a stable price.

Gong Chengan, general manager of Qingdao Guihua Knitting Co. Ltd.: I think the speed of its growth is surprisingly fast, too fast, less than three days to rise 2 thousand, and 2 thousand days later.

Qingdao Liang Ying man home textile Co., Ltd. Lu Liang Village: price is not stable, our final product quotation can not be reported.

At the same time, the sharp rise in cotton prices has also made the enterprises more worried about new orders. The order with higher cotton yarn content, such as the order of cotton or the larger size of the order, will be correspondingly reduced or unanswered, and the product quotation will also be increased. Qingdao Guihua Knitting Co., Ltd. recently gave up an American order. Last year, when they signed a contract with a customer, the price of cotton yarn was 28 yuan a kilogram, but the price of cotton yarn has risen to 40 yuan a kilogram once again this year when negotiating again. If we use 500 grams of cotton yarn to calculate a garment, the cost of each garment will increase by 6 yuan.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: I ask the client to raise the price and raise the price to give me this dollar to go up to me. The customer does not accept it. He does not accept it. It means he will not accept my price and I can not make his order.

With the rapid rise of cotton prices, inventory has also become a double-edged sword for textile enterprises. Generally speaking, the raw material inventory of textile enterprises will remain in the range of 2 to 3 months. If the previous inventory helps the enterprises share the pressure brought by the price increase, then when the cotton price has reached a historical high, inventory may become a risk for the enterprise.

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Therefore, almost all textile enterprises have reduced their inventories.

Qingdao Xi Ying men home textile Co., Ltd.

Lu Liang Cun: inventory relative to cotton yarn prices did not rise when less.

Reporter: how much less?

Qingdao Xi Ying men home textile Co., Ltd.

Lv Liangcun: 20% to 30% less.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: the amount of cotton yarn we reserved is basically 2 months or so, our production volume is 2 months, but to 40 thousand yuan, I personally think that the price is relatively high. The upward appreciation of the space is not very large, the downward space or the opportunity is relatively large, so after 40 thousand, the amount of cotton bought is not much.

Reporter: how many stocks are left in the enterprise now?

Gong Chengan, general manager of Qingdao Guihua Knitting Co. Ltd.: it's enough for a month now.

As cotton prices continue to rise, China reserves cotton management company has begun selling national reserve cotton. However, because the supply is far less than the demand of enterprises, the competition of auction competition is also fierce. Feng Renpeng is the business manager of the Qingdao shimoshi Textile Co., Ltd., which is responsible for the procurement of cotton. He and his colleagues often fight all night to auction cotton reserves through the Internet. According to the trading rules, only one minimum price is set up in the central storage cotton. All member enterprises increase the price on the basis of the lowest price. The added price must be 20 yuan. If no member raises higher price within 30 seconds, the auction will be successful. According to Feng Renpeng, the most painful auction he had experienced began in the afternoon of October 15th and lasted until the afternoon of 16, and the auction continued.

Feng Renpeng, business manager of Qingdao Sheng Bao Textile Co., Ltd.: I stared at (3:30) about 3:30 p.m., and I couldn't help it. I took a nap there, took a nap and looked up, and opened my eyes to see that the system was closed.

At that time, Feng Renpeng was surprised and immediately looked at the results of the spanaction. Fortunately, the last offer was successfully auctions.

Interviewer: what if I didn't get it?

Feng Renpeng: I didn't take it at that time. I was very angry. I stayed up for so long. I was very tired. I didn't sleep for 25 hours.

In addition to bidding for national cotton stores, many textile enterprises also reduce the consumption of hydropower and save costs by importing advanced technology and equipment. Alternative materials have also become the favored object of enterprises.

Gong Chengan, general manager of Qingdao Guihua Knitting Co., Ltd.: we made 70% of pure cotton in the early stage, and 30% of other chemical fibers and blended fabrics.

Although the impact of this round of cotton prices on textile enterprises is different, in the long run, all links in the entire textile industry chain are closely linked.

Gong Chengan, general manager of Guihua Knitting Co. Ltd., Qingdao: it is impossible to say that your cotton spinning enterprise is very prosperous. The finished products are very troublesome, and the garment enterprises are not very prosperous. Cotton spinning enterprises are very troublesome.

The cost risk caused by soaring cotton prices, coupled with exchange rate fluctuations, forced many small and medium-sized textile enterprises to abandon overseas orders this year. Some European and American traditional customers began to turn to India, Vietnam and other countries. But even so, these overseas customers can not get cheaper products than in previous years, because the rising tide of cotton prices has not only happened in China, but also swept the international market.

Just as China's cotton prices have risen all the way, international cotton prices have also reached record highs. Cotton has risen nearly 50% and hit 15 year highs since the end of 7 to the beginning of October. In October 22nd of New York, NYBOT cotton futures closed again on Friday, the highest level since 1861.

China Agricultural University Professor evergreen: cotton from seed cotton purchase price, futures prices, even a record high.

Evergreen, a professor at China Agricultural University, told us that the sharp rise in cotton prices is directly related to the shortage of cotton supply. China, India and Pakistan are important cotton producers all over the world. A series of natural disasters have occurred in the three countries this year. This resulted in a significant reduction in cotton production, which created a huge gap between global cotton supply and demand. Reuters Andrew Potter told us that China is the largest textile exporter in the world and is also the largest cotton consuming country. Due to the significant reduction in local cotton production, the demand for imported cotton has increased substantially, which has partly contributed to the rise in global cotton prices.

Andrew Porter, Reuters Observer: And although India will re-enter the market in November, analystsdon "t", "India", "although", "India, China," and analysts expect that this year's output will not meet global demand. China's demand has also pushed up prices. China's textile industry is looking for new cotton suppliers due to a reduction in domestic inventories due to reduced production and floods. )

Supply is decreasing, demand is increasing, supply and demand are huge, and cotton prices have been refreshed again and again. At the same time, the weakness of the US dollar and the spread of global monetary liquidity also contributed to the rise in cotton prices.

China Agricultural University Professor evergreen: excessive liquidity has played an important role in promoting cotton price rise. Because other commodities besides cotton have similar situations. If there is only one commodity (rising), you can say the reason of supply and demand. So many commodities, the economy is not very good, but we copper to the historical high point, rubber is also agricultural products, and cotton almost. "

Andrew Porter, Reuters Observer: "The weakening U.S. dollar is also hiking up the price of price", "" (the weakening of the US dollar has also led to a rise in cotton prices, which will continue for quite some time).

No matter how long the period is, no one can give an exact answer. However, from historical data, Gao Fang is worried about the uncertainty caused by the rising price of cotton.

"From historical experience or rules, cotton prices are very few at high prices. For example, when the international cotton price came to a peak in 1995, there was a sharp drop in the short term, and the domestic cotton price was also the same as in 2004. There was a sharp drop in the short term, and another high price. This high price support for a very long time is also very small.

Gao Fang, executive vice president of the China Cotton Association, told us that once the sharp drop has occurred, the risk of the entire industry will be difficult to estimate. The first thing to do is to increase the cost of textile products.

Gao Fang: if we are talking about a cotton shirt of 350 grams and a cotton price of 10 thousand yuan per ton, then this shirt will go up by 6 yuan.

Such an increase in cost is a great pressure on China's cotton textile exports, which account for a large proportion of the medium and low-grade products. Therefore, the most worrying thing at the moment is the rise in cotton prices, which will have an adverse impact on the entire textile industry and even China's exports. "

Gao Fang: if this cotton price rise is not sustainable, especially when the textile exports, if China and even the world's cotton prices have plummeted, then the whole industry will bring great losses.

In the face of seemingly unstoppable cotton prices, Professor Chang Qing believes that this is a warning that it is a warning that Chinese enterprises do not have good financial instruments such as futures.

Chang Qing: so as an enterprise, we must use it to hedge against the risk of price fluctuation. Otherwise, the price fluctuation is normal, high and low, so it will affect the enterprise, so the enterprise will have some problems.

How to avoid risks brought about by price changes in a market with varied prices, Professor evergreen believes that risk should be taken into consideration, and fluctuations can be controlled, so that enterprises can safely produce and better enhance the competitiveness of Chinese enterprises in the international market.

Chang Qing: therefore, if China's textile industry wants to improve competitiveness, it really needs this ability to raise its risk of managing price fluctuation, which will make price fluctuation controllable.

"The price of the market economy is changing, but at the same time, it provides you with the tools and tools to lock down the price. If you can make use of it, you can lock in the raw materials and lock in all aspects of the exchange rate, so your company can safely produce.

Half an hour observation

Although the reasons for the rise in cotton prices at home and abroad are not the same, it is at least clear that after the outbreak of the international financial crisis, the consequences of injecting large quantities of liquid money in order to save the economy began to emerge at all levels. Coupled with the competitive currency devaluation of some countries, many commodities have seen price fluctuations in the international market recently, and traditional export industries like textiles are now entering a high-risk era. Such pressure not only brings pressure to domestic enterprises, but also brings impetus. It really learns to use financial means to spread risks and resist shocks. Before, we have repeatedly predicted that the post financial crisis era is not a calm and calm era, and enterprises will face more complicated and more rigorous tests. Now, it seems that such a prediction is not a matter of worrying.