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Some Textile Enterprises In Shandong Are Facing A Shutdown.

2011/5/25 14:42:00 123

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Recently, cotton prices have been rising again and again. Unlike last year, this is not a price increase, but a "diving". The same thing is that cotton farmers, spinning and weaving enterprises are still injured. In Shandong, some textile enterprises have limited production and stopped production.

Tao Jintao is the general manager of Shandong Liaocheng Changshui cotton textile products Co., Ltd.

Cotton price

When he rises, his biggest dream is that cotton prices can "drop" and lower the company's production costs.

Recently, his dream has finally come true. Cotton prices have plummeted like falling waterfalls, but the company's business has not improved, but it is even more difficult.

Tao Jintao: this day is very sad. The stock of cotton yarn is very large, and the pressure on the capital is also very large. The price of cotton yarn has dropped a little now, and the price is still falling.

In Shandong, Dezhou, Liaocheng and other places, cotton purchase price almost a day, in May 20th seed cotton prices have dropped to 4 yuan, and in early May, this price is still 4.8 yuan / Jin, 20 days time fell 20%.

Raw material

The price is low, and the sales price of cotton yarn is also going down naturally. But many textile enterprises still have many cotton prices collected during the soaring prices last year, and cotton prices fell down once every time, just like a stone in their hearts, which means that they will lose more.

Tao Jintao: the stock is too big.

Cotton in stock

Yarn is the raw material spun yarn when the raw material price is relatively high. The cost is high, and now it is losing money.

Loss is not Tao Jintao's biggest concern. He has been in business for many years and has not experienced much experience.

What is even more frightening is that because of the high cotton prices in the early days, the international competitiveness of domestic textile products has been greatly weakened. Orders for clothing and textiles from abroad have begun to decrease as the Spring Festival has just ended.

Tao Jintao: the cotton yarn of Vietnam and India, their price, the same number of cotton yarn, it should be at least about 1000 yuan (a ton).

The labor force is cheap, and utilities and management fees are not a concept with China.

In Tao Jintao's view, in the market of "no price, no market", downstream garment manufacturers are afraid to place orders, and the upstream textile companies are afraid to take orders. The whole market is like "stagnant water".

Tao Jintao: it doesn't matter if you lose money. What's the situation now? It's mainly that you lose money and you sell meat and sell it, and nobody wants it, mainly because the market is too slow.

According to the statistics of Shandong Textile Industry Association, due to the unprecedented huge fluctuations of raw material market, Shandong cotton spinning enterprises, especially small and medium-sized enterprises, are deeply affected and difficult.

According to the insiders, after many years of development, the textile industry itself has also had some deep-seated contradictions.

It is mainly manifested in the weak ability of independent innovation. Clothing is basically based on OEM processing, and low processing fees are made by the growth of quantity. The small profits of textile enterprises are so fragile in the face of changes in cotton prices.

Ma Junkai, President of Dezhou Cotton Association, suggested that textile enterprises should speed up structural adjustment and industrial upgrading, eliminate backward production capacity, actively develop and produce high value-added products, improve the ratio of new fibers, and use non cotton fibers to resolve the impact of high priced cotton.

The huge fluctuation of cotton prices has put the whole market in an awkward position: textile enterprises are difficult to sell cotton yarn, unwilling to purchase lint, and some enterprises limit production or stop production; cotton processing enterprises are afraid that cotton prices will continue to fall and they are unwilling to buy cotton, and they have all stopped collecting; cotton farmers are reluctant to sell cotton or even cotton seed.

Li Yuhu, a big cotton farmer in Dezhou: now there are more factories. Cotton is too expensive. {page_break}!

Experts say cotton farmers have been on the low side for 3 consecutive years. If cotton prices fluctuate further, cotton planting area will definitely continue to decrease, so cotton prices will rise again and again.

The stability of cotton production is the source of all the following industrial chain stability. In this regard, the state should intensify efforts in cotton seed subsidy and temporary storage and storage system, so as to keep cotton prices basically stable.

Ma Junkai, President of Dezhou Cotton Association, suggested that the state should increase the intensity of seed cotton subsidies, refer to the grain subsidy method, introduce Cotton Subsidy, increase the comprehensive subsidy for cotton seed farming, and increase the amount of cotton seed subsidy.

The state should take out some of the funds and establish a high quality cotton base county in the main cotton producing area.