Quanzhou Textile Enterprises Evade Price Risk By Developing New Products

"Reduce the proportion of ordinary fabrics and increase the quality of independent research and development." Fabric The proportion has become a response for textile enterprises. Raw material The main way to raise prices. Yesterday, journalists learned from the price rise of raw materials, such as polyester staple, many enterprises in our city improved the added value of products by developing new products to increase profits and maintain production.

Spinning enterprises can not easily take orders.

Over the past few days, the price of chemical fiber varieties mainly made of polyester staple fiber and viscose staple fiber has been rising continuously in cotton price and raw material PTA.

"Now, when we encounter customer consultation, enterprises are afraid to take orders easily." After the purchase intention of a Middle East customer was removed, Xiao Wu, a salesperson, told reporters that the profit of the original export textile was about 15%, and the price of raw materials increased by nearly 50% within a few days. Considering that the polyester market is very unstable now, the enterprise has to give up the order.

According to introduction, cotton Last month, the chemical fiber products, headed by polyester staple fiber, rose from 9600 yuan per ton to 13000 yuan per ton. Last week, the polyester staple fiber, which remained at 13000 yuan per ton last week, rose to 19500 yuan per ton this week, rising nearly 60% before and after that.

"Raw material substitution" almost failed

Reporters learned that in the first two months, due to the excessive rise in cotton prices, many textile enterprises increased the proportion of chemical fiber to alleviate cost pressures. However, the recent rise in chemical fiber raw materials made this alternative way almost useless.

In order to meet the double rise of raw material prices of chemical fiber and cotton, many textile trading enterprises have signed a 25% floating contract with foreign businessmen to reduce the risk of rising prices of raw materials in the delivery period.

However, in the face of the supply shortage of upstream enterprises, the anti risk "live contract" practice seems to be ineffective for the industry. "In addition to price fluctuations, many upstream mills are short of supply. If textile companies do not have enough cash flow, they will never be able to get raw materials for weaving." Mr. Chen, the head of a textile and textile enterprise in Jinjiang, said that according to past practice, the upstream cotton mills used the form of cash on delivery when they supplied textiles to the textile enterprises, but now, if they do not pay the full amount, most of the mills do not want to supply them for the fabric enterprises. "In many cases, even if textile companies hold cash, they may not be able to ensure that they get the supply."

Reclaim one or two profit

Then, is there any way to reduce the risk of enterprises? "By developing high value-added fabrics, we can recover one or two of the profits for textile enterprises." The chief executive of Shishi textile enterprise said that the price of the original printing and dyeing material of a company in Zhejiang is about 1.16 dollars per meter, while the price of the gold stamping product can be sold to 1.6 dollars per meter. After the development of new products, the profit of every 1 meter fabric can be increased by US $0.44.

"The proportion of functional fabrics that enterprises independently develop now can reach about 50%, and this figure will continue to improve in the future." Chen told reporters that before, the proportion of ordinary fabrics produced by enterprises accounted for about 75%, while independent research and development only accounted for about 25% of the fine products. Now the enterprises are busy docking with the scientific research institutions in Colleges and universities, adjusting the proportion of the top quality fabrics in the products, and striving to avoid the "cost price war" between the current raw materials and the rival enterprises.