Cotton Prices Hit A Record High Of &Nbsp; Wenzhou's Private Capital Was Hit By "Fried Cotton".

　　 Cotton purchase price From 14 yuan / kg in September this year, it has gone up to 27 yuan / kilogram at present.

At the same time, rumors of "hot money in Wenzhou scrambled for Xinjiang cotton" were popular in the Internet, and Wenzhou's private capital was once again pushed to the top of the storm. Whether the price of cotton is rising or not? What kind of pressure does Wen Shang bear? Reporter launched an investigation interview.

　　 Rumor 7 billion to 70 billion, what is the pricing power?

"No matter in Akesu or Kashi, there are few large Zhejiang households. Large buyers are concentrated in Guangdong, Jiangsu and Shanghai." Xu Shouwang, a cotton merchant, denied to reporters on the phone that Wenzhou's hot money was involved in speculation.

Xu Shouwang, Yongjia north of Xinjiang, has contracted for more than ten years in Kashi, a state-owned cotton processing plant. In Akesu, the most important cotton producing area in Xinjiang, there are at least more than 10 thousand villagers who are active in cotton and related fields. More than 70% of the local cotton traders are from Wenzhou, mainly from Yongjia, our city.

Wen Shang's agglomeration in Xinjiang's cotton industry has existed for a long time. Initially, they focused on Cotton processing In the field, quilt quilt is the main product. After the cotton was changed in 2002, a large number of "bullet cotton Lang" entered the Xinjiang River and penetrated into all fields of the cotton industry to become the new force in the local cotton spinning industry.

"The acquisition of cotton has always been based on bank funding. Now the bank is not stopping credit, raising the threshold, and having nothing to fry. " For the recent rumors that Wenzhou's hot money is frying cotton in Xinjiang, Xu Shouwang thinks it is exaggerated.

"Cotton prices continue to climb, speculation is inevitable, but in this regard, Wenshang's hype is likely to be a big deal. Speculation and speculation are two different concepts." Xu Shouwang said.

In September, the China Cotton Association predicted that cotton would be reduced by nearly 300 thousand tons over the previous year, due to weather factors. The market began to smell a panic. The state has sold more than 540 thousand tonnes of national cotton reserves for this purpose, but cotton prices are still soaring all the way.

In September 27th, the state strongly regulated cotton prices. Basically, the banks stopped lending to cotton buyers, and even the social clubs increased the risk. The matching funds increased from 6.1 yuan to 7.8 yuan per kilogram. It is understood that currently in Akesu for cotton trading funds estimated at about 70 billion yuan, Wenzhou funds accounted for only 10% of the total. "Such a proportion of funds, whether the right to speak price, a discerning eye will know." Xu Shouwang said that most Cotton Traders in Wenzhou are small and scattered, and they can only hope for cotton at the moment. When the reporter confirmed the matter to the government of Akesu, the person in charge said that although the number of cotton related funds needed to be further verified, the most important reason for the rise in cotton prices was Wen Wen's "taking it for granted".

　　 Helpless cooperation with enterprises has become " Fried cotton Rendering reasons

Cotton prices soar, the Quartet hotline continues to pour into Xinjiang to grab cotton, why do people think that Wenzhou's private capital involved in speculation?

There are many ginning plants on both sides of the highway in Akesu, many of which are YOUNGOR and Jie Li Ya textile giants processing plants. The investment of these ginning mills is hundreds of millions of yuan, which is the main force to rush to buy cotton. "We simply can not compete with these giants of state and private enterprises. They are worth billions of dollars." Guo Keming, who is engaged in cotton purchasing and processing in Akesu, revealed that the cotton price has gone up, and there are many large cotton spinning enterprises.

Because many enterprises do not have the cotton purchase qualification certificate, they are active in the front line, holding the purchase license, familiar with the procurement procedures, and are worried about the part of the merchants who have no money to cotton. Through cooperation with local Wen merchants, these enterprises without cotton purchase license have completed the acquisition, which has the illusion of "Wenzhou's floating capital cotton frying".

It has been revealed that such cooperation is mainly based on the percentage of the harvest price. It is also divided into interest rates. For example, large cotton enterprises provide Wenzhou cotton merchants with 10 million capital, and the use time is one to two months. Cotton enterprises first raise the agreed interest rate according to interest rates. After Wenzhou cotton merchants will buy the cotton, they will pay a certain royalty profit.

Many of the two ways of cooperation were heard in Wenzhou, Xinjiang. "At least you can get financial support, which is much better than sitting still." Guo Keming thought it was a good thing to kill two birds with one stone. Just because the outside world did not know the truth, there was also a reason to render "Wen Shang fried cotton".

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　　 Entangled cotton prices soaring, Xinjiang Wenji processing enterprises are in a dilemma.

Cotton prices are indeed alarming. In September, the purchase price was 14 yuan / kg. After October, the price soared and reached a record high. At present, it has reached 27 yuan / kg, and there is a panic in the market. "Now cotton prices are going up and down, one price per day, they can only afford to wait and see. Xu Shouwang sighed.

The "Crazy" cotton price makes many cotton processing enterprises ride the tiger. In particular, the impact of Wen Shang is even more serious. According to incomplete statistics, there are 36 cotton ginning companies founded in Akesu in Wenzhou, and about 70% of them are sold to the whole country. 90% of them are bought, processed and sold by Wenzhou enterprises. "Although the price of cotton processing is also rising, it is obviously not up to the speed of the purchase price, and many processing orders were signed last year, and prices were set at last year's level, many of which were at a loss." Guo Keming said.

Cotton purchase price remains high, even if there is money in hand, cotton processing enterprises do not dare to bulk purchase. Xu Shouwang is soberly aware that the effect of the state's intervention policy is emerging. Cotton price futures prices are falling. However, in the face of strong capital markets, the cotton price based on US dollar settlement will also be affected by the US dollar trend, and the future is not clear in the short term. This makes many cotton processing factories very entangled.

Like Xu Shouwang, there are a handful of warm businessmen who are on the sidelines. Others simply go out of business. It is understood that a cotton processing plant opened by a Wenzhou businessman in Akesu has been resting for nearly half a month and has just resumed work recently. The cotton processing plant with a design capacity of 6000 tons now has less than 2000 tons of processing capacity. However, because of the agreement of supply and marketing with the cotton mills every year, they have to buy at a high price, and they can only lose money in doing business.

"Never had a year gone like this year." Zheng Ruiguang, chairman of Akesu long run cotton limited liability company, is also a member of Wenzhou Yongjia, who has been doing cotton business in Xinjiang for 15 years. Although he has experienced countless storms before this year, he and his fellow townsmen are obviously most worried this year. As many temperature trading factories have already signed supply orders, they have to buy high priced cotton at the moment. The same is 30 million yuan of funds, in the past year can buy nearly 2800 tons of cotton, this year can only receive more than 1400 tons. The shortage of funds has almost plagued every business owner in Wenzhou who runs cotton in Xinjiang, and cotton prices will rise again if they go up again.

　　 Change "shrimp" to jointly restructure, enhance market share

This kind of pressure not only causes the heart to suffer in Xinjiang, but also affects the hearts of the people in Yongjia, a thousand miles away.

Yongjia can be described as "the hometown of bung Lang". Before the reform and opening up, Yongjia's cotton bads began to travel north and south. In the 90s of last century, a group of Yongjia people with a keen sense of market began to set up a cotton company integrating acquisition, cotton milling, processing and sales. The continuous spare money in their hometown was rapidly gathered into these cotton companies through kinship, and Xinjiang is a relatively concentrated area.

In recent years, many Yongjia residents are concerned about the trend of the cotton market. They know very well that if cotton prices continue to rise, the cotton enterprises associated with them will probably stop production and suspend business, and they will also be directly damaged.

The complicated and volatile price surge is like a huge whirlpool, which is inhale by many private owners and ordinary people. In order to deal with the passive situation, Wen Shang has strengthened his determination to resist risks in the market.

"The majority of SMEs in Wenshang, if not many joint efforts, some enterprises will be forced to withdraw from the market." Zheng Ruiguang believes that the rise of cotton prices has made a large number of cotton enterprises raise processing fees, and external strong corporate funds have already eaten away the market share that has been operating for many years. If Wenzhou did not cope with the strategy, it would be more passive in the future. Guo Keming disclosed that in this cotton price storm, faced with the strong purchasing and selling ability of state-owned enterprises and supply and marketing cooperatives, many small and scattered disadvantaged businesses like "little shrimp" have been highlighted. Many villagers mentioned the joint reorganization intentionally or unintentionally when talking about future plans. At present, they are in contact with some small processing factories that are closing down in Akesu to discuss cooperation acquisitions, so as to increase the right to speak for cotton growers and banks in the future.

　　 Reading extension

"Stir up" and "quarrel"

China Financial Weekly reported: at present, there are 250 thousand people in the Xinjiang and Zhejiang businessmen. With the increase of cotton prices in Xinjiang, at least 10 billion yuan of Zhejiang's private capital has been evacuated from Shanxi's coal and real estate market this year, and fought in Xinjiang cotton. However, the head of the Xinjiang Zhejiang chamber of Commerce subsequently clarified that the data had not been released.

According to local officials in Akesu, Xinjiang, there are indeed a lot of Wenzhou people doing cotton business in Xinjiang. This price increase does not exclude hot money from Wenzhou. However, the survey also found that some cotton growers are facing the market demand which is in short supply, and they are willing to raise their prices on the waist.

　　 China enterprises news network reported: according to national policies, cotton processing enterprises that meet the quality inspection requirements can apply for the policy funds of the agricultural development bank. But in fact, only a few private enterprises can borrow money. In view of this, Wenzhou's hot money may be involved in cotton frying, but it is too early to push cotton prices up one by one.