The Market Downturn Made The Textile Industry Very Hurt &Nbsp, And 60% Of The Textile Enterprises In Some Areas Went Out Of Business.

Cotton prices have plummeted in recent months, but the days of textile companies are even more bitter than before.

The reason is downstream.

Even people in the industry can not guess when this bitter life is at stake.

Cotton prices dropped nearly 30% in 4 months.

"After the end of this year, cotton prices go down all the way, and cotton growers who do not have much left in their hands are reluctant to sell, so they have to rest at home."

Yesterday afternoon, Ms. Guo, who was living in Tanghe county and relying on the acquisition of cotton, said that since March this year, she has never bought cotton for cotton farmers.

Indeed, domestic

China cotton information network data show that yesterday, China's cotton price index CCIndex328 level of 22387 yuan / ton, only 4 months more time, "diving" has reached 28.2%.

Affected by the domestic market environment, cotton and cotton yarn prices in our province have declined all the way, or nearly 30%.

Insiders predict that domestic cotton prices will continue to fall, it is hard to say how much down to the end.

Textile enterprises in some parts of the 60% went out of business

It is fair to say that cotton prices have been falling for months. Textile companies should be happy to reduce costs, but no one can laugh.

"Cotton prices are falling down every day, and then they are sold out after making cotton yarns. However, as the downstream garment enterprises generally have a wait-and-see mentality, they hope to wait for a lower price to sell again, so textile enterprises often sell at a loss, sometimes even losing money can not be sold."

Yesterday morning, Li Xiuming, a spokesman for the Provincial Textile Industry Association, said.

"Like a certain province in the province, more than 80 small and medium-sized textile enterprises, sixty or seventy of them were in a state of discontinued production for some time ago. The situation has improved slightly recently, but there is still 60% left behind."

According to Li Xiuming, the impact of the continuous decline in cotton prices on the textile industry is more serious than the financial crisis in 2008.

More textile enterprises will be poured out in the future.

The "hang upside down" phenomenon of selling cotton yarn at a high price is not the only factor that is difficult for textile enterprises to suffer.

"This year, the wages of textile enterprises in the province are generally raised by about 200 yuan, and the proportion is 15%~20%. This makes the textile industry which is originally part of the meager profit processing somewhat unable to get rid of it. Coupled with the tightening of state money, it is more and more difficult to borrow from banks, and the pressure on the loan is increasing constantly. Quite a few textile enterprises have been crushed down."

Li Xiuming said.

When does "bitter days" come to an end? Li Xiuming thinks that this is the confusion of the whole industry. No one can say clearly, but the possibility of ending in the short term is not large.

"The whole market environment has changed, and the domestic textile industry has reached the turning point. It is almost impossible to return to the good old days."

Everbright futures analyst Cao Feng believes that this year is only the beginning of the tear in the textile industry, and this spread pain may persist for several years.

In the view of Cao Feng, textile enterprises want to make money only by hoarding cotton or processing raw materials. The former is only possible when cotton is running at an ultra-low price, but the state has introduced a market purchasing policy this year, which makes it difficult to make profit after that. The latter will be affected by factors such as higher labor costs and so on. The profit margins of enterprises will be smaller and smaller, and more and more enterprises will be emptied.