&Nbsp Under High Cotton Prices; Some Textile Enterprises In Chongqing Stop Production And Stop Production.

Since the price of garlic, ginger and mung beans has risen sharply, the whole country has gone up. cotton Prices have also entered a new round of rising cycles. For example, the "328 type" cotton in Chongqing cotton textile enterprise has been used for a large amount. As of this 25 month, cotton trading price has reached a record 25589 yuan / ton, compared with that of last year, it increased by more than 80% compared with 13857 yuan per ton, plus freight, the price of cotton per ton to factory has risen to more than 27000 yuan. As of press release, part of the high quality Cotton yarn It has risen to the highest level of 48000 yuan / ton, and Chongqing textile enterprises shouted "no longer can't weave cloth".

The rise of cotton causes enterprises to suffer losses.

The boss intends to close the door and sell the machine.

In just one month, Chongqing Liu Kaixiang, the boss of the City tianxiang weaving factory, has a personal understanding of the word "chicken ribs".

Liu Kaixiang set up a textile mill in Huilong Ba Town, the largest textile base in our city 5 years ago. His meticulous work in recent years has gradually expanded the scale of his textile mill. But in the past two months, he felt that the good days seemed to come to an end. "From the beginning of this year's cotton prices, I am worried that I will get higher and higher." Liu Kaixiang recalled that from March, the price of raw materials and cotton yarn needed for textile production began to rise gradually because of the rise in cotton prices. Since October, the rise of cotton yarn has gone crazy. In March only 24000 yuan / ton of 40 type cotton yarn, now has sold to more than 34000 yuan. In the face of rising cotton prices, the wages of workers are increasing at the same time. The price of narrow white cloth produced by enterprises has not been able to go up with cotton yarns.

"I used to produce 1 yuan of white cloth for a metre of rice, and now I produce a white rice cloth and I lose 1~2 cents." The key issue of how to survive is already in front of Liu Kaixiang. "Now start production, really taste the same" chicken ribs ". I'm going to stop the production of cotton cloth made from the stock in hand now, and then completely discontinue the production. The textile machine has been disposed of. No one wants to, but it simply smashed it and sold it for scrap metal. "Facing the five or six year old weaving plant, it is about to stop production. Liu Kai Xiang is also reluctant to part with it. But in the face of the rising cotton price, if he does not stop production, the loss will be even more serious.

Like Liu Kaixiang's problem, Sun Zhongwen, director of the Minsheng weaving mill, was also forced to shut down because of the rapid rise in cotton prices. "I got the news this morning that cotton yarn has risen to 36000 yuan / ton." Sun Zhongwen regretted that the news made him wavering and determined to suspend business temporarily. At present, 40 looms in the factory have stopped 2/3.

"Affected by the rise in cotton prices, there are already businesses closed down." Zhang Zongming, Secretary General of the Textile Association of Long Ba, revealed that according to his understanding, some of the small textile factories represented by Xin Kang textile had been closed down. Some of these enterprises are directly announcing production stoppages, while others are euphemistically closing their businesses under the guise of holidays. "At present, it is the golden season for textile sales, and this holiday season itself illustrates the problem." Zhang Zongming said.

Stock is tight and raw materials are too expensive.

Most enterprises will not last for a month.

There are many reasons for the rise in cotton prices. On the one hand, due to the low cotton price in 2008 and other reasons, cotton growers' confidence has been frustrated and the planting area has been reduced, resulting in imbalance between supply and demand. On the other hand, last year, cotton production areas such as Xinjiang reduced output 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.

"Textile enterprises in Chongqing are mostly in the upper reaches of the textile industry, and are greatly affected by the rising prices of raw materials such as cotton." Zhang Zongming told reporters that Huilong town of Shapingba district is the largest textile processing base in the West. There are 640 textile related enterprises in the town, with an annual output value of about 3 billion yuan, and nearly 40% of the products are exported. But with the rising cotton prices, domestic and foreign retailers have reduced the number of orders.

"Now the price of raw materials such as cotton has risen substantially, but the price of primary manufactured goods in some cotton textile enterprises has not been increased accordingly." According to Zhang Zongming, according to past market rules, at least one month after the price of raw materials rises. Cotton prices have gone too far this year. The price cycle of this month has caused too much uncertainty. Many enterprises are not going to survive this month. Now the production of Huilong dam textile enterprise is mainly using the raw materials purchased before, so that the products produced can basically achieve a small surplus, and the profit of white cloth is 1~2 cents per meter. If we buy raw materials now and produce, the cost per meter of grey cloth will increase by 2~5. The more enterprises produce, the more we will lose. Most medium-sized or small enterprises are afraid to pick up orders or cut production or stop production.

"If cotton prices go up again, at least half of the textile enterprises can only go bankrupt." Zhang Zongming said that because of the big fluctuations in cotton prices, most of the other textile factories that were still producing did not dare to buy more expensive raw materials at this time. Instead, they used cheap cotton yarns at the time to produce, but the inventory of the enterprises was seriously insufficient and could support at most a month or so. "Now we can only hope that the price of cotton will be lowered." Zhang Zongming said that the risk resistance ability of small and medium-sized textile enterprises is weak, and if cotton prices continue to rise, these enterprises can only go bankrupt. {page_break}

Answer

Strengthening the ability to resist risks

"Now the textile industry in Chongqing has not yet formed a complete industrial system. It is not that it does not want to, but can not. Most textile enterprises in Chongqing do not have enough strength to upgrade their industries. " Xu Xingquan, chief executive officer of Huilong dam town, said with great earnestness that the textile enterprises in Huilong Ba town were mostly self-employed and not large in scale. Compared with those large state-owned textile enterprises with billions of assets, it was not a magnitude. Moreover, the textile enterprises in Chongqing have not established corresponding sales channels and are unable to undertake a series of effects brought by the upgrading. Therefore, they can only continue to engage in the upstream of the textile industry. This is the lowest profit margin in the entire textile industry and the biggest impact on the price of raw materials. In addition, in the course of development, most textile enterprises are fighting their own businesses and decentralized operations, which has caused the current overall level is not high.

In view of this situation, Xu Xingquan suggested that the textile enterprises of Huilong dam should take advantage of the advantages that have already begun to take shape. This can form scale effect, save procurement cost and enhance overall competitiveness. In addition, through the way of holding together, it can attract downstream businesses to purchase finished products in Chongqing to form a virtuous circle. When the time is ripe, the upgrading of the textile industry will be upgraded, from the production of primary products to the production of advanced products and the sale of finished products.

Transformation is the main link in the middle link

Although most of the small textile enterprises are facing the survival problems, the reporter's visit shows that some enterprises in Huilong dam have developed a unique path which is not affected by the price rise of cotton. Such an example can give some inspiration to textile enterprises struggling at the edge of closure.

"The upper reaches of the industry will always be the most risky and the least profitable segment." Zhang Chengan, Secretary of the Party group of Chongqing Yangtze River textile Co., told reporters that the Yangtze River did not produce the low-end product of the white cloth like most of the enterprises in the town, but instead threw itself into the process of sizing. Zhang Chengan said that sizing is to make cotton sizing for cotton, improve the weaving quality of the cotton thread, and the sizing enterprises charge a certain processing fee, which still belongs to the upstream part of the textile industry. The Yangtze River is by improving the sizing process and improving production efficiency, making it bigger and stronger. Now it is the largest sizing enterprise in Chongqing, and its assets are over 100 million. Starting from the peak season for selling white cloth in August, the order of Yangzi Textile Co., Ltd. has long been in a backlog.

Zhang Chengan's comments were received by the general manager of Chongqing four Tatsu weaving factory, Zhen Ling Ying. "This time the cotton price rises, let me start thinking about transformation." Zhen said he realized that the lowest production of the product could not only make money, but also could not withstand any price fluctuations. In order to ensure survival, his weaving factory has been reduced to directly deal with raw materials such as cotton and cotton yarn, and now it is running the sizing section like the Yangtze River. "Intermediate links do not need to worry about rising prices of raw materials, let alone worry about sales, and income is simple and stable." Zhen Ling said that this mode could be a direction for the transformation of the small Loom factory.