Textile Enterprises In The Yangtze River Delta To Cope With Market Turmoil

Since September, the domestic cotton price has been rapidly rising because of the unbalance of market supply and demand, the rise of international cotton prices, the adverse climate of some producing areas and speculation and speculation in the market.

By the beginning of November, cotton prices jumped from 18000 yuan per ton to 30 thousand yuan, or about 70%.

As China

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Change production plan contingency

Shaoxing is one of the cities that China's textile industry gathers.

For the textile industry, cotton is the most basic raw material, especially in underwear, home textiles and other fields, cotton fiber accounts for almost 60% to 70% of the cost of the product.

According to Lv Yong, general manager of Zhejiang Xian Sheng Light Textile Co., Ltd., because of the fast rising cotton price in the early stage, the knitting plant's opening rate in Shaoxing is only about 30%, and the opening rate of the textile mill is only about 30%.

Many factories live on raw materials in the past, and the production of raw materials is almost done.

But the company has more than 80% of its starting rate.

Lv Yong said, mainly rely on two means: first, improve product prices.

If the most conventional cotton elastic knitwear has been stabilized at $5 per kilogram, the price is now more than $7. Two is to adjust the product structure, mainly for small quantities of high-grade products.

There used to be 3-5 kinds of products in a workshop, and now there are more than 20 kinds of products.

"The way out for textile industry is small batch, high-grade and deep processing."

Lv Yong said that enterprises now have more orders, but their profits are better than last year's.

Reporters in the Yangtze River Delta region, found that in addition to the government and industry departments to take measures to maintain the order of the cotton market and curb the irrational rise in cotton prices, textile enterprises around the country are also actively adjusting the production plan to deal with the adverse effects of price increases.

Make short orders and take the initiative.

Lanxi is an old cotton textile manufacturing base in Zhejiang.

Hu Yintang, chairman of Lanxi Zhong Xiang towel Co. Ltd., described himself as "dead support" because the towel produced by the company mainly supplied WAL-MART, Tesco and other supermarkets. The original order was "one year and one order". The soaring price of cotton has caused the enterprise to fall into a total loss.

"The more orders we had last year, the worse this year.

Now only boil it until the end of the order. "

Hu Yintang said that in the face of increasingly frequent fluctuations in raw material prices, it would be a wise idea to shorten the order time.

But in Lanxi's largest cotton mill, Zhejiang Lima Textile Co., Ltd., the reporter saw another scene. The workshop was booming and the workers were busy. The production line was almost full.

Zhang Shugen, chairman of the company, told reporters that when cotton prices soared, enterprises could have a good market if they stepped on the pace.

According to reports, after the rise in cotton prices, immediately Yunshan Textile Co., Ltd. immediately changed the original long order way, using short orders to avoid price fluctuations.

"Now is a 10 day order, once the order is down, it will buy 10 days of veil consumption at a time, locking the cost."

Zhang Shugen said that foreign buyers are well aware of the global cotton market and can accept the fact that the price of cotton products has risen and the price of products has risen. Now, the profit of Yunshan has increased by more than 70% over last year.

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Replenish the stock and stretch the industrial chain

"Although cotton prices have dropped in recent days, cotton prices have risen for almost two or three days before, and the mentality of cotton farmers' reluctance to sell has really put our business to a bigger test."

"We can only reserve enough cash, purchase according to the customer's orders, and inform the customers that the prices of products need to go with the market," said general manager of Shanghai Jie Long Trading Co., Ltd.

Shanghai JL Lung Trading Co., Ltd. is a Hong Kong invested enterprise mainly producing and selling pajamas and household products. Its products are mainly exported to the US market.

Tan Guopei said: "recently, the company has been encountering new situations in doing business. For example, the company has placed orders for some cloth enterprises, the contracts have been signed, and the advance payments have been paid, but in the delivery date, it is not possible to get the full amount of goods stipulated in the contract.

The other party's explanation is that the price of raw materials is going up, and enough goods need to be raised.

Tan Guopei told reporters that the impact of big fluctuations in cotton prices on enterprises is obvious.

When cotton prices continue to rise, cotton farmers are reluctant to sell. Enterprises are not necessarily rich enough to buy enough goods. If they can not guarantee a stable supply of goods, the production and sales of enterprises will be affected. Conversely, when cotton prices fall, cotton farmers are unwilling to sell at low prices. They will wait for a better time to sell, and customers will be given a certain discount because of falling cotton prices.

Therefore, companies in dilemma will have to find ways to ensure their supply.

"At present, we have purchased 450 mu of land in Henan for the establishment of a cotton yarn factory with an annual output of 300 thousand spindles. The project is divided into three phases, including 100 thousand spindles.

At the same time, a printing and dyeing plant will be set up around it, so that the company can guarantee the provision of cotton yarn dyed fabric dyeing processing clothing sales one-stop service.

Tan Guopei said.

Looking forward to stable price of raw materials

Lu Xianlong, vice mayor of charge of industry in Lanxi, told reporters that the impact of cotton prices on Lanxi cotton spinning enterprises is not small, but the situation of the upstream and downstream enterprises is different: the impact on the white cloth enterprises is small, which has a great impact on the production terminal enterprises, such as home textile towel enterprises, and has little impact on the domestic sales enterprises, and has a great impact on the export enterprises.

"Cotton prices were cheap last year. Many cotton spinning and white cloth enterprises in the middle of the production chain have a lot of stocks. They can earn a lot of money just by eating stocks."

Lu Xianlong said, "but as far as I know, whether they are cotton spinning enterprises or cotton purchasers, they are not afraid of rising prices, but are afraid of skyrocketing, plummeting and big ups and downs."

In recent times, Tang Guirong, the boss of the acquisition company, was in a state of anxiety. The cotton price he bought from the cotton grower department was more than 26000 yuan per ton, but the manufacturer only wished to buy 24000 yuan.

So Tang Guirong also hoarding 5 million yuan worth of cotton did not sell.

"I will increase cotton prices after gambling."

Reporters learned that cotton farmers are generally reluctant to sell, and Tang Guirong bought less cotton this year than 1/5 last year.

Zhang Shugen believes that this year's foreign trade situation is surprisingly good for cotton spinning enterprises, which can almost be described as "10 years in a row", but the soaring cotton prices always make people feel like a thorn in the back.

"At present, the way of short order will have an impact on the production plan of the enterprise, and the purchase of cotton yarn at one time will occupy a large amount of liquidity. Once the price of cotton rises and falls, the capital chain will probably not be able to bear it".

The China cotton reserve management company issued a briefing on the morning of November 16th, saying that commodity futures prices, including cotton, were generally down in recent years under the influence of the government's macroeconomic regulation and control policy. It is expected that the domestic and foreign cotton market hype will continue to cool down in the near future, and the rational return to the atmosphere is expected to increase, and domestic cotton prices will continue to be collated and collated.