From The High Cotton Price "Can Not Afford To Hurt" To Find A Way Out &Nbsp; Where Is The Way Out For Textile Enterprises?

Since last September, cotton has become another trend after mung bean, garlic and apple.

In the face of cotton price "roller coaster" style ups and downs, cotton growers, cotton traders, spinning enterprises "can not 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 yarn prices rise, orders for textile enterprises are small, yarn prices fall, and downstream wait-and-see.

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

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, labor costs have risen and cotton prices have risen.

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 required to be lowered, 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. Now cotton prices have dropped to below 23 thousand yuan per ton, and six thousand or seven thousand yuan per ton of yarn will be lost.

In the near future, cotton prices fluctuate greatly. Enterprises can only take some small orders.

With the reduction of large orders, inventory gradually increased and capital turnover was difficult.

Small enterprises with more than 30 thousand ingots, with low grade of products, short chain of funds, and greater stock pressure, which are also the main reasons for the local shutdown enterprises.

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.