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Cotton Price "Roller Coaster" Test The Core Competitiveness Of Textile Enterprises

2011/7/28 15:47:00 31

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Roller Coaster Cotton Price Spinning Enterprises

Cotton prices surged and plummeted in the past round, making cotton growers, cotton traders and textile enterprises entangled in the cotton industry chain. The textile enterprises are in trouble, and many enterprises limit production and stop production. However, several cotton spinning enterprises in Dezhou city of Shandong province have passed the difficulty through developing new fibers.

Dezhou is an important part of the country.

Cotton production

One of the regions is a large cotton producing market, and also a large cotton market.

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.

This cotton price "roller coaster" style ups and downs, so that local cotton textile enterprises are not injured.

As of the end of June, 70% of the small and medium-sized textile enterprises in the city were shutting down production and limiting production.

However, the huge fluctuation of cotton prices has brought a fatal blow to small and medium-sized cotton textile enterprises, and the impact on textile enterprises using new fibers is very small.

Dezhou Huayuan Textile Co., Ltd. is a new modern textile company. It has 60 thousand rings, 60 thousand compact spins, and 16 sets of eddy spinning in Murata, Japan.

Based on market demand, the company successfully developed modal, Tencel, bamboo fiber, moisture absorption and sweating fiber, milk fiber, bingba fiber, heating fiber, nylon fiber,

Soybean fiber

And new functional yarn such as cashmere.

At the same time, the company produces organic cotton yarn series has passed international certification, products are sold to all parts of the country, and exported to Korea, Japan and other countries and Hongkong area.

The fluctuation of cotton price has little impact on the enterprise, production and operation is normal, and the operating rate is 100%.

It is understood that the profit margins of traditional cotton spinning industry are very low, the average industry is only about 4%-5%, and many small and medium-sized textile enterprises with extensive management are lower to about 1%.

The average profit margin of new fiber products is higher than 10%, which is 1-2 times that of pure cotton products.

A large number of small and medium sized cotton spinning enterprises, with low product grades and identical product structure, are all kinds of high quality goods that have no technical content.

For new fiber textile enterprises, cotton is not the most important raw material for production. The fluctuation of cotton price has little effect on the efficiency of enterprises.

Lingxian County Hengfeng textile company is a large scale with 150 thousand spindles.

cotton spinning

The company mainly produces pure yarn and blended yarn of modle, Tianzhu, Holland viscose, Lan Jing viscose and other new kinds of new fibers.

Jia Guoqiang, deputy general manager of the company, said that Hengfeng company mainly used new fibers, and the amount of cotton used was very small, less than 20%.

In recent years, cotton prices have dropped, and market demand for new fiber products has not decreased. Cotton price fluctuations have little impact on enterprises. At present, enterprises have been producing at full capacity, with inventory of only 500 tons, which is equivalent to more than 10 days' output of enterprises, and there is no problem of backlog of products.

Last year was the best day for textile enterprises in the past 10 years, but most of the enterprises earned cotton money.

That is to say, buying a batch of cotton does not need to be spun into yarn, but it will make money in two months.

This has made many cotton spinning enterprises lose their sense, without considering how to develop new products and how to improve their management level.

Hengfeng company attaches great importance to the development of new products. Almost every month there are new products coming offline. The new products developed independently have made people feel free from competition, and have formed differential competition in the market, which has enhanced the market competitiveness of enterprises and ensured the higher profit level of enterprises.

They have developed two series of copper ammonium fiber products, and only two enterprises in China can produce them.

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 hot money speculation, 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 make structural adjustment so that the products will be pformed from low-grade and extensive to high-grade and refined, and actively research and develop high added value non cotton fibers, reduce the ratio of cotton to cotton and reduce the dependence on cotton flowers.

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.