Cotton Prices Plummeted, Let The Textile Industry Ride The Roller Coaster Frequent Fluctuations, Cotton Farmers Are Disturbed.

At the end of last year, the 2010 cotton was reported on the topic of "crazy price pushing the cotton industry into impasse".

Half a year passed, crazy.

According to domestic media reports, the recent collapse in cotton prices has led many textile companies to ride the roller coaster: last year, their profits Ceng Pan reached their highest level in ten years, and this year cotton prices plummeted.

In order to stabilize the market, the state formulated a reserve price of 19000 yuan / ton.

What impact will this sluggish cotton price have on cotton farmers and what kind of impact will they have on textile enterprises in cotton producing areas?

Recently, the reporter came.

Cotton farmers are disturbed.

In the five springs of Shihezi's general farm, several cotton farmers chatted about the crazy cotton prices last year, and the mood was complex.

Five, even Chen Zongying, a worker, said that more than 420 mu of cotton had been planted last year, and its output reached more than 400 kilograms.

At the time of purchase, the price was 10.3 yuan per kilogram and the net cost was about 600000 yuan.

Chen Zongying said that he spent most of his life cotton and never thought he could make so much money.

According to her, it is to earn ten years' worth of cotton seed.

She said that in the past year, a kilogram of cotton would sell for about 5 yuan, and earn tens of thousands of yuan a year. Besides the production and investment, the money saved after the daily expenses of food and clothing was limited.

But last year's cotton prices really stunned cotton farmers.

Chen Zongying said, "at that time, every day looking at the rising cotton prices, the heart jumped, I really can not believe that cotton prices can be rushed to 13 yuan a kilogram."

Although she finally sold the group at the price of 10.3 yuan / kilogram according to the purchase contract signed at the beginning of the year, she suffered a lot, but she was very happy.

But when the money is put in the pocket, think carefully, such a price is not good for future production.

Several cotton farmers have similar views with Chen Zongying.

Guo Junzhi planted more than 400 acres of cotton last year. Because of its high yield per unit area and only one cotton income, it earned over 80 yuan.

However, he is also worried about the cotton market in the future.

He said that the rise was high.

Last year's high prices increased the cost of planting, especially the cost of labor.

It is not good for us to expect too high labor costs.

Guo told reporters that last year, when the price of labor was the highest, 1 people were hired for 9 yuan per hour, and today it has risen to 14 yuan per hour.

Yang Bing, the five company commander of the spring area, said that five of them had sown area of 7217 mu. In recent years, cotton seeds were basically planted. Last year, the total seed cotton reached 2900 tons, the average yield per unit area was 380 kg / mu, and there were 92 workers in the company.

In his view, from cotton farmers' perspective, the higher the cotton price is, of course, but from the long-term health perspective, cotton prices are too high last year.

At that time, the estimated price was 7 yuan / kg. Who would have thought that it would break through 10 yuan? From the high level in 2003 to 7.4 yuan to 8 yuan per kilogram, the cotton could not sell 4.8 yuan per kilogram in 2008, such a big fluctuation, if only by the cotton farmers' own strength, simply can not withstand the market risk.

Yang Bing and several cotton growers believe that although the super high cotton prices last year have made them earn a lot, such a high price will surely increase the cost of spinning, weaving, clothing and other enterprises, which will make many enterprises unable to carry on and stop production and bankruptcy.

This will definitely affect the purchase price of cotton in the coming year, and the low price will also affect cotton farmers' enthusiasm for planting cotton.

They hope that a stable price can not affect the enthusiasm of cotton planting, increase cotton production and increase income, and at the same time, it is also conducive to the development of textile enterprises.

For the current low price in the cotton market, they say that there are still several months left from the cotton picking season, and the price can not be regarded as the final price.

Though the price is lower now, who knows what the price will be at the time of takeover?

Although it is easy to speak, they can feel their apprehension in words.

"We don't have the bottom of our hearts," Chen Zongying said. "Now the market price of cotton is low. When it starts to weigh, it will not be 5 yuan / kilogram, then the cotton will be white."

Cotton enterprises are in different situations.

Compared to cotton farmers, Shihezi's textile enterprises are much more calm.

In recent years, domestic textile giants such as Xiong Feng, Hua Fang, Huafu, Ruyi, Hongsheng and Ai Li have settled in the Shihezi economic development zone. The scale of cotton spinning production of these enterprises has reached 2 million yuan.

Among them, Xiong Feng Group invested in Shihezi Tiansheng Textile Co., Ltd. production scale reached 1 million 250 thousand spindles.

According to Li Yongsheng, deputy director of the Ministry of mining and supply department, the production scale of Tiansheng about 1000000 spindles is more than 100 thousand tons per year, which is the largest cotton producer in Shihezi.

Shihezi reclamation area produces 350 thousand tons of cotton in the whole year, only 1/3 in Tiansheng.

Over the years, enterprises have basically no warehousing of cotton, whether they were high last year or low this year.

The reason is: first, enterprises are in the cotton producing area, and the supply is basically not worried. Two, cotton storage will cause the quality of cotton to drop.

Of course, the most important point is that the government of Shihezi has adopted some policies on the raw cotton protection mechanism, which is signed by the largest local cotton operation company, the silver force group and the cotton manufacturer, to avoid the impact of cotton price fluctuations.

Li Yongsheng took last year as an example. When cotton price was fired to nearly 30000 yuan / ton, the cotton price of silver force group to Tiansheng was 24900 yuan / ton to 25300 yuan / ton.

He said that such a protective policy played a barrier role for Shihezi's textile enterprises to resist risks.

Therefore, no matter how volatile the cotton price this year is, and with a protective screen, enterprises will naturally feel a lot safer.

Li Yongsheng said that enterprises did not take advantage of the low price of cotton storage plan.

Xinjiang Corps Agricultural two division Yongxing company is the main acquisition and operation of cotton companies, and its eight agricultural division and the nature and role of the silver force group.

Zhou Yi, Secretary of the Party committee of the company, introduced that the total output of cotton in the two division reclamation area last year was 4 million tons, which was basically acquired by Yongxing company.

The company purchased from cotton growers at a price of 26000 yuan / ton, and the company sold the business at a price of 26000 yuan / ton after adding a little service charge.

Zhou Yi said that at the beginning, he was worried that he would be criticized by the enterprises, and he would dare to invite the heads of the enterprises to eat.

They said that the water rose, the cotton rose and our yarn rose.

Zhou Yi told reporters that at the end of December last year, there was no stock.

So high cotton prices, initially worried about the enterprises do not, the result is, some enterprises also need to, early order 3 tons, and ultimately 10 tons, after the increase, these enterprises will sell cotton.

But the same situation is different for textile enterprises and cotton purchasing enterprises.

Akesu western cotton company has been very anxious recently. The head of the company said: last year, we were afraid that cotton could not be collected. At the height of 32000 yuan / ton, the company acquired 3000 tons of lint and sold lint from the end of last year to the present, and nearly 2/3 did not sell it by the end of April.

Although the state gives a freight subsidy of 400 yuan per ton, if it is below 32000 yuan / ton, it will be paid.

Lin Shujing, a cotton merchant who has been doing cotton business for more than 10 years in Hami, has collected tens of thousands of tons of lint at the price of nearly 30000 yuan / ton last year. By the beginning of this year, twenty thousand tons had been overloaded, so there was no way to cut the meat and sell it at 26000 yuan / ton.

She said she wanted to sell at a low price as soon as possible.

There is a demand in the mainland, but because there is no wagon to sell, there is a pressure of more than 10000 tons.

Railway pport capacity is tight and cotton pportation is difficult, which makes cotton enterprises and cotton merchants a headache.

It is understood that by the end of April, there are still nearly 700 thousand tons of cotton waiting for Xinjiang.

The railway department of Urumqi said that because of the limited number of wagons sent to the southern part of the main cotton producing area, and other large commodities such as petroleum, which occupied a large number of wagons, the cotton could not be pported in a short time.

"Some of the cotton bought last year came from loans, and the pressure to repay them was enormous.

Now we see the profits brought about by the price rise last year, which is diluted every day because of the backlog of cotton.

If the backlog of cotton can not be sold, the purchase of new cotton will be reduced this year, said the head of a cotton processing plant in Akesu.

Reporters in the survey found that many cotton merchants have this idea.

Raise the cost of seed cotton comprehensively

What will be the price of cotton this year after opening the scale? Xinjiang cotton group and autonomous region supply and marketing cooperatives have said that cotton has not yet come down and the price is not good enough.

But cotton producers generally see this year's cotton prices down.

According to the survey, large inventory is an important reason for the difficulty of cotton sales in Xinjiang.

In enterprises with a production capacity of more than 1 million 230 thousand spindles, the stock of lint reached 1 million 236 thousand and 700 tons, with the monthly average lint consumption of 90 tons, and the inventory could still be maintained for about a month.

Local cotton enterprises cotton analysts believe that cotton prices rose last year, cotton growers, cotton traders, textile enterprises mentality of the same price, so that the sale of cotton hoarding.

But by the beginning of this year, most textile enterprises were less motivated by the increase in lint costs and labor costs and the tightening of state policies.

Lin Shujing is not optimistic about cotton prices this year.

She said, first, the adjustment of the national macroeconomic policy, tightened the money supply, increased the difficulty of corporate loans, and increased the shortfall in the acquisition of cotton funds. Two, the interest rate of banks increased, the pressure on enterprises to repay loans increased, and they did not dare to lend money. Three, the orders of the downstream enterprises were reduced and the commenced work was inadequate due to the impact of the international textile market.

All these factors will lead to a downturn in cotton prices this year.

But she said that many cotton farmers she met had quite a lot of expectations for cotton prices this year.

Some think it will reach the high level last year, 12 yuan / kg.

Many cotton farmers believe that the cost of cotton planting has risen sharply this year, and cotton prices have dropped.

Zhao Xinmin, deputy head of Shihezi general farm, eight division of agriculture, told reporters that the high price of last year led to an increase in overall expectations. Meanwhile, the cost of seed cotton increased this year, up by more than 40% over last year.

He calculated an account. If cotton purchase price is less than 8 yuan per kilogram this year, cotton farmers will not earn much money.

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Chen Zongying, who owns five springs in Shihezi, will burn the cost of planting cotton last year and this year.

Fertilizer: last year, 67 yuan / bag, up to 80 yuan / bag this year.

Plastic film: last year 40 kilograms 10.5 yuan, this year rose to 12.8 yuan.

Seed: last year 7 yuan / kg, this year 12 yuan / kilogram;

Labor: the highest 9 yuan / hour last year, this year rose to 14 yuan / hour;

Pesticides: 20% higher this year than last year.

Pick up expenses: last year, from 1.4 yuan per kilogram in the past year to 2.5 yuan / kg, the starting price this year is 2.5 yuan / kg, and it may rise to 2.8 yuan / kg.

With water and electricity charges, the cost per mu is about 2000 yuan.

Chen Zongying said, according to the relatively good situation, an acre of land will receive 400 kilograms of cotton, according to 8 yuan / kg acquisition, you can harvest 3400 yuan, after deducting the cost, you can net more than 1000 yuan per mu. If the net income of an acre reaches less than 1000 yuan, it will not be cost-effective to grow cotton.

For the recent downturn in cotton prices, they say that they have been accustomed to this kind of repetition for many years, but the price of last year is a bit too high.

Cotton prices rose last year, and many textile companies expected to affect cotton prices this year. Although they generally expected that cotton prices might fall, they still paid cotton advance payments to the acquiring company, such as Yongxing bank and silver force early.

Zhou Yi, Secretary of the Party committee of Yongxing company, said that at the beginning of the year, the company received two hundred million yuan of cotton subscription from all textile enterprises. Now the enterprises are smart, and the market is changing rapidly. When it comes to cotton weighing, what price is it?

Cotton price game is like beating drum to spread flowers.

The same is the cotton acquiring company, because of the different nature of the company, different strength, the impact is also different.

Lin Shujing's cotton management company is a private enterprise. She has been paying close attention to the change of cotton prices recently. At present, the state receives and stores the price of 19800 yuan / ton. According to past experience, she thinks that the price should be the current storage price, which is about 8 yuan per kilogram.

She said that her annual price is higher than that of state owned companies, and has certain competitiveness in acquisitions.

But this year, when it comes to tightening policy, it is difficult to get loans from banks during the cotton purchase this year.

At the same time, she was also worried about the ability to purchase cotton with cotton textile enterprises this year.

And state-owned Cotton Corp like Yongxing do not worry too much.

Zhou Yi said that the policy will definitely affect the cotton price this year, and it will not be as high as last year. But experience tells us that the state will protect the interests of cotton farmers, and it will not drop too low. Even if it is lowered, farmers will not suffer losses.

Last year, the Yongxing company bought cotton without borrowing a cent, basically the money of the enterprise.

Taking into account this year's situation, the company has made preparations for the loan to the agricultural development bank. In this respect, the company has an advantage over the general textile enterprises.

Zhou Yi said that this is the superiority of the regiment's high degree of organization. The state-owned company represents the interests of the peasants.

It has been described that the game process of cotton prices is like beating drums and spreading flowers, and finally the flower people are the ones who cry.

For the excessive fluctuations in cotton prices, Xinjiang textile industry experts say, this is not a good thing.

Although the state-owned cotton enterprises play the role of "flood storage and water storage" in the cotton operation process, they have protected the interests of cotton farmers to some extent, and have also reduced the risk of acquiring cotton by some textile enterprises.

But this kind of big fluctuation will bring a blow to downstream textile enterprises and small and medium enterprises, which will inevitably react to the front end of the cotton textile industry chain.

The veteran in the industry suggested that while protecting the interests of cotton farmers, the state should also formulate corresponding policies to support the development of small and medium-sized enterprises in the middle and lower reaches of cotton spinning.

At the same time, Xinjiang should change its way of relying mainly on export lint and cotton yarn as soon as possible, changing from the low end of the textile industry to the middle end and the high end, and really turn the resource advantage into the commodity advantage.