Cotton Traders Lose Huge Sums Of Money To Repay Loans

Yesterday (June 30th), Zhang Hong, general manager of Jiangxi Pengze Hesheng Cotton Industry Co., Ltd. paid the last day to the bank.

In the big cotton producing county of Pengze, there are too many cotton merchants who are in arrears with Zhang Hong's huge loans.

Some cotton merchants choose to evade on the eve of the bank's collection, while others raise money to repay the loan.

Xu Leiming, vice president of Pengze Cotton Association, said

Days when banks are forced to pay debts

Zhang Hong never imagined that his whereabouts in Anqing was discovered.

When the last day of repayment came, bank staff suddenly appeared in front of Zhang Hong magically.

In order to recover these 30 million huge sums of money, loan banks are willing to "cross provincial track".

Zhang Hong's Hesheng cotton industry is a large family in Pengze county.

"The loan must be paid back, but there is not so much cash on hand."

Zhang Hong said that the main purpose of his visit to Anqing is to recover the balance of sales so as to make up the amount of repayment.

Through various channels to raise and recover money, by 5 p.m. on June 30th, Zhang Hong finally got together 30 million yuan to return all the loans to the bank.

"The heart is broken down, but it is broken."

Zhang Hong commented on the mood of bank loans.

The sale price of leather cotton is about 21000 yuan per ton, while the cost is about 28000 yuan / ton, and the loss of each ton is up to 7000 yuan, and the loss of Zhang Hong is up to 4 million yuan.

Plus 1000 tons of lint in the warehouse, the loss is at least ten million yuan a year.

Prices are like roller coaster.

The 200 ton lint processing factory affiliated to Hesheng Cotton Industry Co., Ltd. is contracted by cotton merchant Kolson and several partners.

They raised about 10000000 yuan through bank loans, self financing and pledge. Since last year, they have bought about 5000000 catties of seed cotton and processed more than 900 tons of lint.

The 900 tons of lint cotton has sold only 270 tons.

Of these, 30 tons sold 29000 yuan / ton, and 240 tons sold 26000 yuan / ton.

Peng Zemian's quality is worse, but local cotton producers are optimistic about cotton prices breaking through 30000 yuan / ton, so the seed cotton purchase price also rose at the time, rising from 4.5 yuan / Jin, and finally the general purchase price rose to 6.8 yuan / Jin, and the price of individual cotton merchants broke through 7 yuan / Jin.

How did we know that the market suddenly changed? After the new year's day, cotton prices suddenly dropped. At that time, most Cotton Traders stopped buying seed cotton, and the purchase price of seed cotton fell down to around 5.5 yuan / Jin.

After the Spring Festival, the price of online cotton suddenly reversed, and the price of imported cotton reached 38000 yuan / ton, while the price of Xinjiang cotton reached 38000 yuan / ton.

Ke Mansheng said that after seeing the news, the impulsive cotton merchants began a new round of rush buying of seed cotton.

"Cotton farmers also saw the news on the Internet, and they set the price at 6.2~6.3 yuan / Jin."

Just like Ke Mansheng and other cotton traders nervously bought the purchase.

As soon as the price of storage and purchase was released, cotton market prices plummeted immediately.

Xu Leiming said that cotton prices fluctuated in the past year at around 500 yuan and 800 yuan, and after April this year, lint prices plummeted, and thousands of dollars had never fallen.

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"The newly acquired seed cotton has been processed into five or six hundred tons of lint, and no one has immediately asked for it."

Ke Mansheng said that the downstream textile enterprises, when they saw the state's plan for purchasing and storing cotton, did not store cotton and wait for new cotton to go public.

Ke Mansheng and other cotton traders are playing a roller coaster game in the cotton world.