Cotton Price Roller Coaster Triggered A Chain Reaction &Nbsp; Textile Enterprises Should Worry About Doing He Yuanlv.

In the farmland of new Zhai Township in Zhangqiu, a large piece of corn moistened by a drizzle of 28, and the situation was particularly gratifying. People in Xikou village were busy in the last weeks of the harvest of corn. But on the other side of the country road, farmer Zhang Ziwu could not be happy because he had grown five acres of cotton for ten days. "The price of cotton is too low at the moment, which is not as good as the state's purchase price, and the price of new cotton is not high enough." Zhang Ziwu, 58, planted cotton for nearly 20 years. This is the first time that cotton prices have been raised this year. He said that the current state purchasing and storage price is 19 thousand and 800 yuan / ton, but the price of private purchasers is about 18 thousand yuan / ton.

     Cotton farmers who can't afford to hurt

"In early October of last year, a catty cotton was sold for 7 yuan, earning nearly 2000 yuan per mu." Zhang Ziwu told reporters that some of the other farmers in the village were still hoarding. Now the price has dropped to 4 yuan / Jin. "Who can imagine that the price of cotton will drop so fast? The price is really hard to understand. " "Now cotton Basically, it's all about losing money. It costs about 4 yuan a kilogram. " He said that the price of pesticides and fertilizers has been rising, which has greatly increased the cost of planting, and in the last 2 months, it has been raining and production cuts are unavoidable. There is a subsidy of 80 yuan for different kinds of cotton and grain, but no subsidy has been paid for cotton seed production, so cotton growers are even worse this year. "This year we planned to have three mu of cotton, but later we wanted to grow some grain for our own use, so there were not many varieties. Next year, we should grow grain honestly." Zhang Ziwu said that according to the current price, when cotton is mature, it will not be sold immediately, hoarding up and waiting for the price to rise. The reporter inquired about several cotton farmers in Zhangjia village, Bei Kou village and Hu Jia village nearby, and the idea was roughly the same as him. According to this trend, the phenomenon of a large reduction in cotton growers will happen. Many cotton growers and retail investors will leave cotton farmers to grow corn and wheat. "Farmers can't afford to hurt!" Ren Quanyuan, general manager of Ji'nan head knitting Limited by Share Ltd, regrets that this phenomenon is cotton spinning For enterprises, it is the last thing they want to see.
 

　 Textile enterprises experience " Two days of ice and fire "

As a textile production enterprise specializing in weaving, dyeing, finishing and garment processing, the main raw material for knitting is cotton yarn, cotton yarn is processed through cotton, and cotton prices directly affect the price of cotton yarn, thereby affecting the business profits of enterprises.

"At present, the price of cotton has not yet affected the operation of the" head of state ", but this year's loss is certain. Ren Quanyuan told reporters that from cotton to cotton yarn to clothing products sold through a number of processes, so these processes have given a certain buffer to the impact of the rise and fall of cotton prices on the commodity, resulting in the sale of products is not very sensitive to cotton prices.

Before the cotton price rose in April last year, the "head of state" ordered cotton yarn manufacturing enterprises according to cotton prices at that time. At the beginning of this year, the raw materials were purchased in large quantities according to the cotton price at that time, and the cotton for 8 months was stockpiling. Because the purchase market talks about the expected price of raw materials and the buyer's market does not talk about price expectations, last year, the company made a profit because of the "time difference". At the same time, it will lose money this year because of the "time difference". Ren Quanyuan said that large enterprises can be maintained in a complicated market situation because they have established a long-term cooperation mechanism, but the whole cotton spinning market also has the rule of "buying up, not buying down", like the stock market. Therefore, the drop in cotton prices also means that the order of goods will be reduced a lot. Compared with the "head of state", many small cotton spinning enterprises in Shandong will be affected more.

Jinan City Textile and garment industry Jia Fengmei, President of the association, said that the number of textile enterprises in Ji'nan was less than that of other cities in Shandong, and some of the cities which were concentrated in textile enterprises, nearly 7 of them had already been faced with bankruptcy and stop production. For cotton yarn enterprises, according to the 1.1 ton cotton spinning 1 ton yarn and the latest cotton price of 18 thousand yuan, the raw material cost per ton of yarn is 22 thousand yuan, plus the basic cost of electricity, worker's wages, spanportation and other basic expenses 7000 yuan, and they get a net loss of nearly 4000 yuan per spinning of a ton of cotton yarn. Jia Fengmei told reporters that compared with last year, cotton textile enterprises this year can be described as "ice and fire".