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    Textile Raw Materials Are In An Awkward Position. Where Is China's Pricing Power?

    2011/4/26 17:58:00 93

    Textile Raw Material Pricing Mechanism Cotton Price

    In recent years, the news of iron ore price movements has repeatedly stirred up the nerves of the Chinese people. The repeated failure of the iron ore negotiations has made people feel the pain of the lack of pricing power in international trade. In fact, the lack of pricing power is nothing more than iron ore, a product and an industry. Yao Jian, a spokesman for the Ministry of Commerce, once said: "the pricing power of our country in the international trading system has almost completely collapsed, and a major problem facing China is the lack of pricing power for commodities."


    China's "manufacturing power" and " Textile power "Identity" has long been undisputed. With the rapid development of China and the continuous transfer of world capacity to China over the years, the absolute superiority of China's textile and chemical fiber industry in terms of quantity can not be shaken. In 2010, the output of domestic chemical fiber reached 30 million 897 thousand tons, accounting for 64% of the world's chemical fiber output, of which 25 million 130 thousand tons of polyester were produced, accounting for 70% of the world's total polyester production, and polyamide, spandex, viscose fiber and other chemical fiber varieties occupy or surpass half of the world's related varieties. However, such a textile and chemical superpower, in terms of raw material procurement, product sales and many other aspects, has very limited pricing power.


      "Involuntarily" say the price


    In a recent industry meeting, Chen Yulin, chairman of Xinxiang egret chemical fiber Refco Group Ltd, was rather helpless about the viscose market. According to him, the cost of pulping of viscose fiber raw materials was originally 5000~6000 yuan / ton, but now it has risen to 8000 yuan / ton, and with the rapid fluctuation of cotton prices, the price of viscose fiber has dropped from 28 thousand yuan / ton to 24 thousand yuan / ton for only a few days.


    Chen Yulin has been fighting for decades in the chemical fiber industry, and is recognized as an elder in the viscose fiber industry. As early as a year ago, when reporters interviewed Chen Yulin at the 50th anniversary celebration of the egret chemical fiber factory, he felt deeply about the long-term shortage of viscose raw materials and the weak pricing power of domestic enterprises. Chen Yulin told reporters that the global viscose filament production capacity of about 300000 tons, China has more than 200 thousand tons of capacity. However, the absolute superiority in quantity does not fully win the right of bargaining for domestic enterprises. Taking more than 90% of the imported wood pulp as an example, the foreign production cost is about 600 US dollars / ton, but the recent sales price has reached as high as 2600 US dollars / ton, but domestic enterprises have no right to say "no".


    Reporters also recall that in a forum in Shanghai in March this year, people from Cixi, China's "plush city", urged domestic acrylonitrile enterprises to develop and produce acrylic products instead of imported ones, so that they no longer put up with raw materials. It is reported that due to the prominent contradiction between supply and demand, the price of flat acrylic fiber imported from Japan has risen from 20 thousand yuan / ton to 33 thousand yuan / ton in more than 1 years, and some products even reached 40 thousand yuan / ton high, up to 44%~75%. At the same time, the difference between domestic acrylic fiber and Japanese flat acrylic fiber is close to 8000 yuan / ton.


    In the first quarter of this year, Cotton price Under severe fluctuations, the price of chemical fiber products has risen, but the overall increase is less than that of raw materials. The cost pressure can not be completely transferred to the downstream. Because of this, the price of chemical fiber has increased, while the profits of chemical fiber enterprises have been shrinking rapidly, and some enterprises have even suffered losses. For the fact that the industry chain is difficult to transfer prices upward, the industry is interpreted as "related". pricing mechanism There are problems.

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