Cotton Prices Roller Coaster Cotton Enterprises "Very Hurt" No Money To Buy Cotton, Private Enterprises Complain

Yesterday, China's cotton price index was 24551 yuan / ton, but in March 8th this year it was as high as 31241 yuan / ton. In just three months, cotton prices plummeted 6690 yuan / ton.

Just like roller coaster cotton prices, many cotton textile enterprises hoarding at high levels are miserable.

He is a supply and marketing Minister of a large cotton textile enterprise in Sichuan. Although he has been dealing with cotton for decades, this year's strange cotton price still makes him feel at a loss.

Compared with large cotton textile enterprises, the situation of small and medium sized cotton textile enterprises with weaker risk tolerance is more difficult.

In the face of slump cotton prices and continuous high cotton yarn inventory, some small cotton textile enterprises chose to stop production and reduce losses.

Kuangxian, general manager of Chengdu Hualong Chemical Fiber Co., Ltd. was busy at a university in Chengdu yesterday. He prepared dozens of tender materials to prepare for the market.

4 days ago, in the conference room of Chengdu small and medium enterprises' service union, Kuang Xian orange and other ten garment executives sat at a conference table about 10 square meters, discussing a common problem -- "

For the market of cotton quilts and quilts that he is prepared to acquire, he calls it a traditional market and can not be lost.

If it is lost, the next financing needs will be bigger and the financing difficulty will be stronger.

"All liquidity will be added".

Kuang Xian orange told the Chengdu Commercial Daily reporter that if he was given 5 million, he had to do the first thing.

"Wage increases, operating costs and raw materials prices are rising, and many areas need much more money than last year. There is no timely liquidity. My business scope is compacted and many businesses have to be suspended."

Mr Kuang said that the rise in raw materials was a big problem due to the lack of liquidity.

According to Wang Yusheng, Deputy Secretary General of Chengdu clothing (apparel) Industry Association, lack of liquidity is very common in Chengdu clothing enterprises.

Sichuan Fran Garments Co., Ltd. is one of the largest clothing enterprises in Sichuan. Its general manager, Yang Zebin, told reporters yesterday that before investing in about 20000000 of the projects in Pengzhou, although the operation is normal now, "but financing is difficult to affect the growth and strengthening of enterprises", Keji at the scene saw that due to the lack of funds and other factors, the enterprise's two phase base in Pengzhou is still a wasteland.

Hualong chemical fiber is an old clothing enterprise in Chengdu. It was founded in 1994. Besides providing products such as hard cotton, loose cotton and hot-melt cotton for large and medium-sized enterprises such as furniture and clothing, it also provided quilt, bed cloth and other services to Sichuan freshmen.

Kuang Xian said yesterday that Hualong chemical fiber is facing a more pressing question: what money will be used to purchase the next cotton?

It is understood that the annual 8~9 months, clothing and textile enterprises to buy Cotton concentrate period, "foreign trade orders before accounted for most of the company's share, and since last year, the foreign trade market began to shrink, the current order fell by 80%, basically no single."

Kuang Xian orange has some reluctantly said, "export can not provide financial support to enterprises, so the purchase of cotton for the next period is mainly wait-and-see. If there is no restructured liquidity injection, the business scope of enterprises will be compacted, and procurement will not be completed as planned".

If we miss the golden period of cotton purchase, what will be the impact on it?

"The cost will be further improved."

At the same time, "enterprises have to do less projects."

Kuang Xian said, "we are pretty good. Some of the small and medium-sized enterprises are in semi shutdown and stop production."

For the funding gap, he said that he had talked with three or four banks this year.

"Including a well-known foreign bank, or they took the initiative to come home, but finally ended up."

Kuang Xian orange said that the interest rate was too high, and the bank's loan method was similar to that of "buying commercial housing." the term of loan is divided into 3 years, 5 years and 8 years.

In addition, he contacted a state-owned bank, but the other Party demanded that there must be a mortgage. "We can not meet the requirements of the other party."

Yang Zebin, general manager of Sichuan garment company, also said that in most clothing enterprises in Pengzhou, because early mortgage loans had been used, loans were not available at the later stage. "We hope to use loans, equity or credit to expand loans."

At present, Hualong chemical fiber has only loan relationship with Chengdu agricultural commercial bank. "It is mainly through the guarantee of Credit Guarantee Corporation of Chengdu small and medium-sized enterprises, the loan from the agricultural business bank is 2 million."

It is understood that not all enterprises can enjoy credit guarantee loans, Guarantee corporation also assess the credibility of enterprises.

At the same time, unlike some small and medium enterprises looking for private lending companies, Mr Kwong said that the risk was too high and the interest rate was high, which was "not very suitable for our company".