Textile Enterprises: From "Can Not Afford To Hurt" To Find A Way Out

Since last September, cotton has become another "Crazy" farm product after mung bean, garlic and apple. Cotton prices rose rapidly from 18300 yuan / ton in early September to 32000 yuan / ton in early November, and then dropped sharply to 26000 yuan / ton in early December. Before and after the Spring Festival, it began to rise and a turning point appeared in early March, from 31000 yuan / ton to 22500 yuan / ton. Cotton yarn prices continued to decline significantly. 32 pure cotton yarns have dropped from 40000 yuan / ton in early March to less than 30000 yuan / ton, and 10 thousand yuan per ton in 4 months. Cotton prices surged and plummeted. Cotton growers, cotton producers and textile enterprises in the cotton industry chain were entangled in cotton prices. As a whole, textile enterprises are in trouble. Many enterprises limit production and stop production, and their difficulty is no less than that of the global financial crisis.

Face cotton price "roller coaster" style ups and downs, cotton growers, cotton traders, spinning enterprises "Can't afford to hurt." Cotton growers are reluctant to sell, wait and see, the progress of the sale is obviously slowing down. Up to now, 15% of cotton farmers have not sold them, and they can only wait until September for sale with new cotton. The cotton processing and purchasing enterprises are afraid to open up the takeover and receive the stops. At present, the inventory losses are serious. When the price of yarn rises, the order of textile enterprises is small, the price of yarn drops, the wait-and-see sentiment is strong, the purchasing is not active, the cotton yarn is seriously unsalable, and the stock is increasing greatly.

In the face of rare difficulties in history, where is the way out for textile enterprises?

Inventory reduction Capital occupation

Dezhou city of Shandong province is located in the northwest plain of Shandong Province. It is one of the most important cotton producing areas in China. The city has 415 Textile Enterprises above Designated Size, of which 247 are cotton spinning enterprises, with a production scale of 5 million spindles, with capacity of 1/7 in Shandong and 1/20 in the whole country. According to the survey, at present, 50% of Dezhou's small and medium-sized textile enterprises have been discontinued, and 30% of them have limited production. Since last year, the cost of labor has risen and cotton prices have plummeted and plummeted. Therefore, we can only take some short lists and small bills, and it is difficult to arrange production normally.

As a well-known cotton textile industrial cluster, Xiajin County, a small and medium-sized textile enterprise, has become the "worst hit area" in this wave of cotton prices. Xiajin county is the national high quality cotton production base. The annual cotton planting area is about 600 thousand mu. In recent years, the local government has made great efforts to develop the textile industry. The county's cotton textile enterprises have reached 140, and the scale of spinning has been 2 million 200 thousand spindles, becoming the "famous textile city of China". In recent months, enterprises have tried various ways to promote sales, but they still can't sell. Cotton yarn stocks generally reach 1.5 to two months (normal stock is 15~20 days), inventory pressure is increasing, a lot of capital is occupied, turnover is very difficult, no money to buy raw materials, many enterprises have no choice but to stop production and holiday.

Zhao Zhongfeng, general manager of Yuanfeng Textile Co. Ltd. of Xiajin County, regrets that although cotton prices rose last year, it was the best time for textile enterprises in the past ten years. Cotton prices began to drop sharply in March of this year. It should be said that the price reduction of raw materials should be a good thing for textile enterprises. But in fact, the downstream industries such as weaving, clothing and so on stared very hard on cotton prices. As soon as cotton prices fell, cotton prices were asked to lower, but the cotton used for these yarns was bought at high prices before and after the Spring Festival, and the price of cotton was over 27 thousand yuan per ton, and now cotton price has dropped to 23 thousand yuan per ton. Below, a ton of yarn is worth six thousand or seven thousand yuan.

The near future Fluctuations in cotton prices Enterprises can only take some small orders, big orders do not dare to pick up. With the reduction of large orders, inventory gradually increased and capital turnover was difficult. Most of the local small businesses are less than 30 thousand spindles, with lower product grades, shorter capital chains and greater inventory pressure. This is also the main reason for many local businesses.

Zhao Zhongfeng said that at present, textile enterprises are in a critical period of life and death. Shutting down production is not the best way. The most effective way now is to reduce inventories, reduce capital occupation and try every means to survive.

Improving internal quality and improving product quality

Shandong de Mian Limited by Share Ltd is a large comprehensive cotton textile enterprise integrating spinning, dyeing, weaving and processing. It has 230 thousand rings, 3000 air spun products, and the overall equipment has reached the leading level in the same industry in the country, with over 80% of its products exported to all parts of the world.

Li Chuanbo, assistant general manager of German cotton Limited by Share Ltd and manager of raw materials company, analyzed the reasons for the difficult situation of the textile enterprises at that time. It was considered that since the second half of last year, domestic cotton prices have risen sharply, wages have increased and production costs have increased, which has pushed up the price of cotton textiles, and many foreign orders have begun to transfer to Southeast Asian countries. Foreign trade orders have been reduced, market demand has been reduced and inventories have been increasing. In addition, since this year, the state has repeatedly raised the reserve requirement ratio of banks, which has tightened money and made loans more and more difficult. The entire textile industry is in dire straits.

Li Chuanbo said that the current labor pains of textile enterprises may be a good thing for the whole industry, forcing enterprises to improve product quality and eliminate backward production capacity. With the rise of domestic labor costs, the development of low-cost expansion is impracticable. At present, textile enterprises should not only reduce their inventory, but also work hard on the quality and style of the products, improve the quality of products, and make the products fine and meticulous. At the same time, we should improve R & D capability, constantly introduce new products and new styles to meet market demand and minimize the impact of cotton price fluctuation.

R & D and use of new fibers

In view of the ups and downs of cotton prices, Dezhou Huayuan and Lingxian County Hengfeng textile companies have put their eyes on the development of new fiber products.

In recent years, Dezhou Huayuan Textile Co., Ltd. has successfully developed 12 new functional yarns, including modal, Tencel, bamboo fiber, corn fiber, milk fiber and soybean fiber, which are sold to various parts of the country and exported to many countries and regions. Compared with other local enterprises, the impact of cotton price fluctuation on the enterprise is very small, production and operation is normal, and the operating rate is 100%.

According to Jia Guoqiang, deputy general manager of Hengfeng textile company in Lingxian County, Hengfeng company is a large cotton spinning enterprise with 150 thousand spindles. It mainly produces pure and spun special yarns, such as modle, Tianzhu, Holland viscose, and Lan Jing viscose, and the proportion of cotton is only 15% left and right. The price of cotton has dropped, and the demand for new fiber products has not decreased. The fluctuation of cotton prices has little impact on the enterprise.

Jia Guoqiang believes that over the years, many textile enterprises have taken advantage of the low labor cost advantage to occupy the market and develop rapidly. The overcapacity of domestic textile industry and the enlargement of supply and demand gap have provided opportunities for some speculators, causing cotton prices to rise sharply and plummeted. In the next few years, domestic cotton production potential is limited, and the gap between supply and demand will exist for a long time. The textile industry must carry out structural adjustment so that the products can be transformed from low-grade and extensive to high-grade and refined, and actively develop high added value non cotton fibers, reduce the ratio of cotton to cotton and reduce the dependence on cotton. At the same time, textile enterprises should strive to build their own brands, so that the brand will become the carrier of value and corporate culture.

?