Cotton Price Crisis Forced Henan Textile Enterprises To Collapse

According to the director of the cotton production management office of the Shangqiu Agriculture Bureau, 2009 the seed cotton purchase price in the city was about 4.6 yuan / kg, and this year it soared to 11 yuan / kg. Last year, the purchase price of lint was 15 thousand yuan / ton, and this year reached 25 thousand yuan / ton. Through these two sets of figures, we can see that this year Cotton price It doubled last year to a record high. At the end of last year, the purchase price of lint cotton was up to less than 20 thousand yuan, while the current price has reached 30 thousand yuan, the head of Mulan textile company of the city said.

According to media reports, in September 27th of this year, the Zhengzhou commodity exchange cotton futures contract reached a record high. At the close, CF105 closed at 21635 yuan per ton, up 380 yuan. In November 8th, the cotton futures contract of the Zhengzhou Mercantile Exchange relaxed the sky price of the June 1, 2004 cotton futures listing. CF105 saw the highest price of 33295 yuan per ton and closed at 32970 yuan per ton, up 1950 yuan. According to statistics, cotton futures from the beginning of the year to 16000 yuan per ton to 33000 yuan per ton, or up to 106%.

So is cotton spot market. In November 8th, China's cotton price index rose by 733 yuan to 28891 yuan per ton. At the beginning of this year, China's cotton price index was 15000 yuan per ton, or more than 90%.

Enterprises are miserable.

Zhumadian Kang Mao arts and Crafts Co., Ltd. is an export-oriented private enterprise. Its main products are pure cotton, non-woven shopping bags, composite fabrics and so on. They are exported to 30 countries and regions such as Western Europe, Japan and the United States. Chen Mao, director of the office of Kang Mao company, told the author that the pure cotton cloth product accounts for 30% of the total product. Since the rise of domestic cotton prices, the company's production has been seriously affected. Recently, the company has stopped accepting cotton business orders. The company only relies on the production of non-woven fabrics, composite fabrics and other products.

He said that although the seven ministries and commissions have jointly issued relevant measures, the effect is still unknown and is not optimistic. For foreign trade enterprises, the recent foreign trade situation is quite grim, which is even more difficult than last year. At present, most of the industry orders have been sent to Vietnam, Pakistan and other places. These areas have low labor costs and relatively stable raw material prices, which have taken advantage of our market.

Zhengzhou's women's trousers brand M·SUYA's leading show clothing company reflects that Zhengzhou has more than 500 garment enterprises of above scale. At present, some garment enterprises are hesitant to face overseas orders. Because signing a contract according to the current price, the actual production is equivalent to increase the cost, the profit space shrink or even lose money. {page_break}

Zhengzhou Tai Lida Trading Co., Ltd. is a professional company for garment import and export. Xu Wenbo, the deputy general manager of the company, told the author that in recent months, the cotton market can be said to be a price per day. Not only that, the price of accessories related to clothing is also increasing, but the profit of foreign orders is only 10% compared with that of the beginning of the year. Now the fabric processed by the company has increased by 10%, which means that the company is zero profit or even a loss.

Follow suit

According to the industry, cotton accounts for about 40% of the total cost of clothing. According to the calculation, the price of cotton has increased by 5%. Garment processing enterprises Profits will drop by 2%. In view of the skyrocketing cotton prices and the fluctuation of related raw material prices, some garment processing enterprises in Southern District of Zhengzhou have taken steps to increase the dosage of chemical fiber products and reduce the use of cotton in order to cope with the shortage of cotton. From cotton processing to chemical fiber cloth processing, although profits have decreased, it is relatively more insurance.

Some clothing companies in Zhengzhou reflect that at present, some garment enterprises in the city have been unable to digest the cost pressure internally. Since September this year, the factory price of women's trousers has already been raised. The denim fabric has risen by 3-5 yuan and the chemical fiber fabric has risen by 2-3 yuan. The average price of the women's trousers has been increased from 150-160 yuan to 170-180 yuan for the local famous company Zhengzhou Ya Li Da Garments Co., Ltd.

According to the person in charge of Lingda underwear factory in Zhengzhou, the cotton yarn purchased in May and June last year was 16 thousand yuan / ton. By September, it was 19 thousand yuan / ton, and now 37 thousand yuan per ton is very difficult to buy, and the best cotton yarn is 38 thousand yuan / ton. At present, the factory basically depends on the previous stock in production.

Zhumadian City Mao Mao arts and Crafts Co., Ltd., the person in charge told me that at present, because of many Zhumadian City Cotton related enterprises Most of them are small and medium-sized enterprises with a single variety of production. Most enterprises have very few cotton stocks. Because of the soaring cotton prices, these enterprises are basically helpless. They can only follow suit or stop business. Some enterprises are already in the market. On the verge of collapse Status.

In view of the recent surge in cotton prices and the increasing risk of cotton circulation enterprises and cotton spinning enterprises, the cotton association of Henan province held a forum on cotton situation in late last month, and government departments and enterprises jointly discussed, analyzed and discussed countermeasures to enhance information exchange between enterprises.