Cotton Textile Industry In Liaocheng Under The Impact Of Cotton Prices

Spinning and weaving are mixed.

"Since September, cotton rose strongly, cotton rose by 100% in two months, but the trend of cotton in recent months has been increasing. Cotton futures hit a high level of 33720 yuan per ton on the 10 th of this month, and fell sharply. On the 11 and 12 days, it continued to decline for two consecutive days. The rising form has been completely damaged, and the spot market has undergone a comprehensive adjustment."

In November 23rd, Jin Yuan, deputy general manager of Linze, Ltd., told reporters in Linqing, Yang Jigang.

For spinning enterprises, the situation in the first half of the year is very good.

Linqing City Textile Industry Office union director Han Weidong specifically analyzed the industry's internal price fluctuations, "the same period last year was 14 thousand yuan a ton, this year than last year, more than doubled.

Generally speaking, the situation of spinning enterprises is good. They usually have two months' inventory. After the cotton price rises, the veil price is rising, and the profits of the enterprises have increased a lot.

Some enterprises reported that they had made profits in the past 3 years in the first half of this year.

This is not a good situation in 10 years. "

But Han Weidong stressed that the development of the situation in the second half of the year is not well measured.

Due to the collapse of cotton spot and futures prices in the past week, the cotton yarn and weaving industry has a certain time to reflect the price of raw materials. Linqing textile enterprises have seen the phenomenon of "high price cotton and low price cotton yarn", that is, the customers only consider the cotton yarn which is now low price cotton production, and the cotton yarn purchased by high priced cotton production is difficult to sell.

Because of the impact of rising prices of raw materials can not be well pmitted to the downstream industries such as weaving, batik, clothing and so on, the cost increase is digested in the intermediate links, and the profit margins of downstream enterprises are squeezed.

Now the rise of cotton textile products is "cost driven" rather than "demand pull up".

Both inside and outside

Qi ya, general manager of Xinya company, said: "the cotton price we used last year was 2.95 yuan - 3.15 yuan per meter, now 6.1 yuan per meter, and the enterprises are facing great cost pressure.

Since the second half of this year, the price of our export products has increased by 20%, but the cost has increased by 70%.

The price of our export products has increased by 50% over the same period last year, but foreign customers do not accept it, asking us to reduce the price according to the current cotton price. "

This phenomenon has also caused the dilemma faced by cotton textile export enterprises: export or domestic sales? {page_break}

Li Hongqi, chief of the Liaocheng Foreign Trade Bureau's foreign trade management section, said: "since the second half of this year, the cotton price has been greatly affected by the cotton textile enterprises in our city.

During the Canton Fair, cotton prices may rise by more than 1000 yuan per ton a day, and cotton textile exporters are facing a dilemma.

The cost of raw materials is too high for enterprises to lose money if they continue to export and the price of the outside market can not be raised.

If they do not export, they will lose customers in the international market.

Now some cotton textile export enterprises make up the deficit of foreign trade through profits from domestic sales.

It is understood that at the beginning of the year, the most important issue was the exchange rate of RMB against the US dollar, and the phenomenon of labor shortage. However, the severe fluctuation of raw material prices has become the most important factor affecting the export of cotton textile industry.

Many companies call on the government to introduce policies to mediate the market, stabilize prices, help enterprises, and severely punish hoarding.

Advance and retreat, firm choice

As the largest cotton consuming country in China, the self sufficiency rate of cotton is 60%.

According to the data of Liaocheng Cotton Association, Liaocheng cotton has grown to 8 million mu, now only 2 million mu.

Take fan Zhai Township in Guanxian as an example. The township has 56 thousand mu of arable land and is very suitable for planting cotton. Only 4000 mu has been planted this year.

This situation has brought great pressure to enterprises. Linqing cotton textile enterprises are avoiding risks through new products, "going out" and "joint banking and enterprise".

Linqing Linsheng Textile General Manager Li Yinxi introduced, at present, cotton prices dropped 4000 yuan per ton, cotton yarn prices reduced by 2000 - 3000 yuan per ton, good market demand, profit did not reduce a lot, but the profit rate has decreased.

It is understood that the sun textile is ready to mount the children's clothing production line; Jing Peng textile has built factories in Wusu city of Xinjiang, striving for the development of 50 thousand spindles in 2 years; Jin Yuan Tian Ze has been avoiding risks through the way of "joint bank and enterprise".

"Banks use the advantage of capital to buy 1400 tons of cotton, and there is a warehouse of our company. How much does our company buy from the bank reserve at the market price?

In this way, banks can reduce the holding funds as much as possible by charging a certain fee.

In addition, timely adjustment of product mix.

From cotton and other natural fibers to chemical fiber, the price of chemical fiber is relatively stable.

New products require new equipment and new markets.

At present, our starting rate is 100%. "

Yang Jigang told reporters, "at present, the decline of cotton spot and futures prices has given enterprises and expected prices of raw materials to continue to decline, but I think the cotton yarn market is very large and the rate of reduction will be very small.

In this regard, corporate behavior will be more cautious, through small orders and short-term orders, "fast forward and quick out" as a strategy, try to avoid risks.