Cotton Prices Are Higher Than &Nbsp; Foshan Enterprises Are Facing A Shutdown.

Shunde Junan

"Customers are willing to pay 50% of the deposit, up to 20% before, but our businesses are afraid to take orders, because there is no one in hand.

The soaring cotton has seriously affected the survival of downstream industries. Foshan's more than 5600 clothing and fabric enterprises have been sighing for a long time. Some enterprises are in danger of shutting down in the first quarter of next year.

Terrorist shutdown in the first quarter of next year

There are no cotton yarn factories in Foshan, but there are more than 5600 clothing and fabric enterprises, and 1065 of them are above designated size.

However, the orders currently made by Wu Haoliang enterprises are all orders from last year and early this year, only enough to last until the end of the year.

Many enterprises do not have orders for next year. Some enterprises may be in danger of shutting down in the first quarter.

"It's not that there is no order, but I dare not answer it," Wu Haoliang said. "Now the client is willing to give 50% deposit, but the business dare not answer it.

Because there is no raw material in hand.

The long cotton and cotton yarn is one price per day, and the medium and long term do not dare to pick it up. Only dare to make a short delivery within a month.

Under normal circumstances, it should be ready for the first quarter of next year's raw materials, but the soaring cotton prices to cotton yarn factory, cotton can not buy cotton mills have to shut down, and this directly affects the start of the fabric factory.

It is understood that the fabric and clothing enterprises in Foshan mainly purchased cotton yarn from four places in Xinjiang, Shandong, Henan and Hubei, but many cotton yarn factories in the region have been closed down, and some have already cut off their supply.

Appealing to crack down on speculators

China Cotton Association website monitoring data show that in November 10th, China's cotton price 328 weighted index was 30861 yuan / ton, compared with March 1st's 15063 yuan / ton, surged 104.8%.

The price of 32 pure cotton yarn has risen to 48000~50000 yuan, up 50% from March to November.

Tan Yanwen, a famous cotton expert in China, said that the reason why cotton prices were skyrocketing was the impact of domestic supply and demand gap caused by natural disasters, and two was the malicious speculation of domestic and foreign social capital.

At present, a large number of cotton traders have been concentrated in Xinjiang cotton area, and a lot of hot money and cotton spinning enterprises compete for cotton resources and continue to push up cotton prices.

But such measures are lacking in strength.

Wu Haoliang said cotton prices are difficult to solve in the short term.

The real difficulties of production enterprises will be concentrated in the first quarter of next year.