Cotton Merchants In Wenzhou Talk About Cotton Roller Coaster

A snowy white cotton is affecting the heartstrings of thousands of Wenzhou people. With the continuous regulation of policies and the withdrawal of market idle funds, cotton prices, which are almost out of control, have gradually returned to rationality, with the amount of nearly 32000 yuan per ton reduced to 26000 yuan per ton. In this regard, though far away from Xinjiang's Cotton Traders, there are losers, but more and more people feel relieved: their expectation of normal production is finally coming back.

Rolling for more than ten years, the most complete loss this year.

"In the past month, cotton prices have been like a roller coaster ride." When interviewed, Xinjiang was the largest. Cotton production Li Linchun, Akesu's Wenshang District, sighed.

Li Linchun has two cotton processing plants in Akesu. There are more than 5000 cotton merchants in Wenzhou. His experience is quite representative.

Affected by the weather this year, Akesu's cotton market is nearly a month behind schedule. When seed cotton was first released in October, the purchase price reached 8 yuan, more than one kilogram, which was 2 yuan higher than the normal purchase price in previous years.

There is no need to repeat the following situation. Cotton price Faster and faster. "When the seed cotton purchase price has risen to more than 13 yuan, we have not been entangled in our mind. We have no idea. Everyone is rushing to gather cotton. Our eyes are red. The price has gone crazy. We can only follow the madness. No one knows what will happen in the future. First we will accept it." Li Linchun said, at this time, Akesu cotton city has flooded the hot money of all major cotton enterprises in the country, and Wenshang is now "old age", and the number of people is also large, so they are placed on the title of "fried cotton".

In the face of the rare frenzied cotton prices, in November 8th, 7 ministries and commissions of the state jointly controlled. On the 11 day, there was a dramatic scene in the market: on that day, cotton prices rushed to a new high of nearly 32000 yuan per ton. Akesu seed cotton purchase price also fell, from the highest price of 15.7 yuan per kilogram to 10.8 yuan.

"From November 12th, it was 5 days, and almost all the money I earned in the early days was lost." Li Linchun said with a bitter smile that in this round of panic buying, he had collected 30 thousand tons of seed cotton, and he had taken the lead before the price dropped, but there are still more than 6000 tons of lint processed in the warehouse. Li Linchun is very helpless: "sales price has been falling, lower than the acquisition cost price, sold is a loss, but not sell, afraid to fall again, more losses." Li Linchun admitted that it was the first time for Xinjiang to do more than ten years of cotton industry.

Do not blame others, seize the last opportunity to make up for losses.

"Many cotton producers in Wenzhou want to lose money because of the impact of this year's cotton prices." Teng Minli, President of the Wenzhou chamber of Commerce in Akesu, told reporters that the market price of cotton has now dropped rapidly to around 26000 yuan per ton. In December, cotton purchase in Akesu and other regions has come to an end. Cotton prices fluctuate from time to time, but under the influence of state regulation and the withdrawal of all kinds of hot money, the overall trend is clear. Wen Shang was injured in the "cotton price storm". Not only was his wallet actually damaged, he was also regarded as a scapegoat.

"In terms of Wen Shang, cotton prices fall despite losses, but in general, it is not a bad thing." It was thought that Wen merchants would be complaining, but tengmin's words were quite surprising.

Teng Minli told reporters that Wen has been rooted in the cotton industry chain of Xinjiang for more than 20 years, and cotton prices are soaring when many people are at a loss. A lot of Wen Shang's cotton processing is not enough to start up. First, cotton is not available, and two is the loss of cotton prices. Now that cotton prices have dropped to this level, they have a bottom in mind. And the cotton grower who was asking for a price at the waist was finally lowered. Wen Shang could receive cotton. In a word, Wen Shang's cotton processing plant has done something again.

Teng Minli's words are many. Wen Shang It has been corroborated. Many small and medium-sized cotton processing factories in Akesu, which had been closed due to high cotton prices, heard the sound of machines again. Wen Shang Guo Keming told reporters that his processing plant has been resting for more than half a month, and has just resumed production recently. It is still only a small scale processing. The factory with a daily capacity of 5000 tons now has less than 2000 tons of cotton, but this is enough to satisfy him. "Cotton purchase is coming to an end, and cotton prices will fall further down, and cotton prices will gradually return to rationality while looking at cotton prices." Guo Keming can be said to be "seize the day", while Li Linchun, who claims to lose money for the first time, is buying cotton as much as possible before the market closes to make up for the previous losses. {page_break}

A small cotton affects the whole garment industry chain.

From the reporter's interview, after the cotton price storm, more Wen Shang still optimistic about the future market. Teng Minli said: "now cotton prices are returning to reason, although the final price may still be higher than in previous years, but the cotton market is moving towards normal, we will continue to buy cotton, after all, the market demand for cotton still exists." For journalists, "some experts say cotton prices may drop by 10%", he also said that the market still has a downward trend, but judging from the entire industry chain, whether the magnitude is so large is open to question.

Teng Minli's analysis is reasonable. The bubbling cotton price wave has already deeply affected the clothing industry. It is understood that cotton accounts for about 40% of the cost of general clothing. As cotton prices soar, clothing prices also rise significantly. But after a marked decline in cotton prices, clothing did not follow suit. Reporters visited a number of shopping malls in Wenzhou, found that this year cotton, down clothing, thermal underwear, wool clothing and other prices have risen, the average increase of two or three. Such as a set of cotton thermal underwear, last year sold 80 yuan to 120 yuan, the same product this year, from 100 yuan to 160 yuan, or about 20%.

"It will be very difficult for clothing prices to fall back this year." The head of a large garment enterprise in Wenzhou told reporters that the cotton price rose overall this year, and other expenses of garment enterprises were also increasing. For the sake of balance, only the sales price of clothing was raised. As soon as the price of clothing falls, cotton is the most important raw material and there will be more room for bargaining. From this perspective, "the space of cotton price reduction has been limited", naturally, there will be more recognition. As a matter of fact, not only the price of cotton fabrics has increased, but also the chemical fiber fabrics have risen. The influence of a small cotton release can be seen.

Do you want to grow cotton next year?

"This cotton price disturbance, leaving to Wen Shang is not just a helplessness, more is thinking." Zhang Yili, executive vice president of Wenzhou University business school, told reporters that although Wen Shang had been rolling for a long time in Xinjiang Cotton City, the incident also exposed the disadvantaged position of cotton merchants in Wenzhou. It not only became scapegoat, but also had little power in purchasing, transportation and financing. Once cotton prices rose rapidly, it was easy to fall down.

Indeed, in the competition with large cotton and hemp companies and state-owned enterprises, private cotton enterprises are facing many obstacles.

At present, large enterprises in Xinjiang basically monopolize the procurement channels of cotton farmers. Although there are many cotton merchants scattered around Wenzhou, most of them can only watch others pick up watermelons, and even more can only buy cotton from their hands and increase production costs. The majority of Wenshang acquisition funds come from Wenzhou's hometown. Many monthly interest rates are not less than 1%, while the cotton and ramie companies at all levels mainly come from the Agricultural Development Bank, and the interest is much lower. Wen Shang first lost the money pressure.

And cotton transport is more difficult for them. At present, most of the wagons of Xinjiang cotton transported by railway departments can only be protected by "main channel" enterprises. Every year, in order to get cotton out, private enterprises have to pay a high price to get the wagon. Wen Shang Zheng Yingduo said that the "fee" of two thousand or three thousand yuan per car can be shared by enterprises and customers. The cost of each ton of cotton is therefore increased by at least 100 yuan, while the cotton and flax company has no such burden.

"The unfair treatment of resources, funds and policies is more terrible than the soaring price of cotton. To break the fence, it is bound to be bigger and stronger and strive for the right to speak. This will increase market participation and is not easy to be discredited. Zheng Yingduo and Teng Minli isothermal traders said that this cotton price storm has made Wen businessmen realize this point before. In the future, Wen Shang must continue to take root in the soil of Xinjiang, and strive to make himself a more constructive force in the cotton market. From this perspective, the cotton price wave has quite a lot of enlightenment.

"The price rises really beat Wen business by surprise, but we can't shake everyone's production base and confidence in Xinjiang." Teng Min Li finally told reporters that now many Wenshang have gathered together to plan for integration and the next year's production plan. Many people are even ready to engage in seed cotton and extend the industrial chain so as to withstand unforeseen market risks.