Weird Cotton Price! Brand Clothing Enterprises Laugh, Textile Enterprises Suffer

"Fortunately, we are still alive, there is tone.

Finally wait until cotton prices bottomed out, I hope it will steadily increase after that.

Fan Junfeng, general manager of Zhejiang Xin Lang Textile Co., Ltd., in an interview with reporters, issued several sighs.

That day was the first day when the state started the temporary storage and purchase of cotton in 2011. Fan Junfeng is optimistic that the government's minimum protective price policy will play a role in stabilizing cotton prices.

In the past year,

Rise and fall and die.

From the peak of cotton prices in February of this year, a plan for the eight departments of the national development and Reform Commission will have a high fever at the end of March.

"Our textile enterprises are greatly affected by this, small factories have stopped work, and big factories can barely support them," Fan Junfeng said excitedly. "Last year, the whole industry really made a lot of money, and colleagues laughed to their lips, but in a twinkling, they cried to hang up."

The fall in cotton prices was good for the downstream enterprises, but everything was destroyed by human greed.

Just a year ago, the cotton market was completely different. Cotton prices could be described as "go crazy". Nearly a day, a high price of cotton had bankrupted a group of small and weak cotton spinning enterprises, but also made some bold cotton spinning enterprises make a fortune. They took the risk of taking up production funds and hoarding a lot of cotton, and they could make a profit by changing hands. But this kind of game of drum beating flowers suddenly met the ceiling of March this year.

"I bought cotton yarn a month ago. I will lose two or three yuan per month for selling rice cloth every month, and I will lose three or four yuan in a month.

Can not get sold in the hearts of more panic, I do not know what the cotton price will fall to what extent, selling or not selling is a loss.

Fan Junfeng told reporters that at that time, the cotton yarn produced by enterprises with large stockpiles could not sell the cotton price at that time. The market was always expensive, and many cotton spinning enterprises had stock for at least two months.

It is understood that many large enterprises in the industry are also affected, such as Huafang textile, Phoenix Bamboo textile, Wei Qiao textile and other enterprises, there are many high priced cotton in their hands, which directly affects their purchasing intention in the coming year.

The spread of Huafang textile may even be stopped because of cotton prices.

Recovery of market confidence takes time

"The state starts the cotton temporary purchase and storage price, will buy at this price bottom, will give cotton grower a reassurance, and also indirectly determines the bottom line of cotton prices this year."

Liang Dongya, general manager of the cotton and ramie company of the regiment, is very confident about the future trend of cotton prices. He thinks that cotton prices will show a trend of slow rise from now on. But considering the bad funds and policy faces in the current and future period, the cotton price ceiling should not exceed the peak of cotton prices in February this year.

"We can't judge the trend at this time. The cotton price this year is too weird."

Shandong I

But some people seem to have little confidence in the future trend of cotton prices and even the market of the entire cotton textile market.

Reporters interviewed found that some sectors of the industry due to severe fluctuations in cotton prices are too deep, there is talk about cotton "color change" emotional tendency.

When receiving a reporter's call, the owner of a textile enterprise in Guangdong immediately changed his face as soon as he heard the topic of cotton price. He said excitedly, "everything is going to die. What is the impact?"

And hung up the phone.

The head of a textile management department in Xinjiang also declined to be interviewed by reporters. He said, "this topic is endless for three days and three nights. I can not tell you that if I do not speak well, it will be very influential, and I will be scolded."

Xinjiang is China's cotton base. Over the past year, cotton growers have experienced great happiness. In a sense, Xinjiang's cotton and textile market is a microcosm of the whole industry.

In a comprehensive view, there are several reasons for the pessimists: first, the demand is not strong, but the reduction of business orders will restrict the prosperity of the industry; two is the slow recovery of the global economy, the appreciation of the RMB, the tightening of credit funds and the rising cost, and the growth of the industry is slowing down; the three is that the global cotton producing countries, including China, have a bumper harvest this year, and the supply of cotton is far greater than the demand.

Therefore, looking ahead, cotton prices and cotton textile market is still facing uncertainty.

Take care of oneself

Around May and June this year, most of the clothing enterprises in China will finish the autumn and winter ordering in 2011. From the ordering meeting of several enterprises, the news of autumn and winter new products will rise, and the rumors about the price increase of sports brands such as Lining, 31st degree, Anta and so on are even more popular.

The news of the price increase of clothing enterprises made most textile enterprises very unhappy. Fan Junfeng said, "Why are they going to stay out of the river when we are suffering?" not only that, they heard that cotton prices fell, but they tried hard to keep prices down when purchasing cloth, and they increased prices instead. What is the reason? "{page_break}

But in clothing enterprises, there is another explanation.

Wang Jinqiao, chairman of Beijing Ge Qipao Co. Ltd., said that the reason for the increase in clothing prices this year is not because of raw materials, but because of the increase in labor costs and pportation costs.

Wang Jinqiao told reporters that in fact cotton prices are only part of the price composition of clothing, accounting for less than 20%, and this year's labor cost is rising by 80%. Therefore, the drop in cotton prices can not affect the price of clothing at all.

Apart from various external causes, China's cotton textile industry's irrational industrial structure has also been criticized.

The industrial chain of textile industry belongs to the date kernel type, and there are fewer enterprises at the two ends of the industry chain in R & D design links and marketing service links, and many enterprises are in the middle end manufacturing links.

Manufacturing profit is relatively thin, which is most constrained by cost and is also most vulnerable to fluctuations in raw material prices.

In particular, the cotton spinning industry, which is dominated by small and medium-sized enterprises, is weak in overall resistance to market risks. Once there is a stir, its bargaining power to the downstream is rather weak, which is another main reason why cotton spinning enterprises are losing money seriously after the fall in cotton prices.

"The price of brand clothing has long been measured without cost. As long as quality is maintained, customers will accept it even if the price is raised."

Wang Jinqiao suggested that textile enterprises should learn from the brand clothing enterprises, improve the added value of products through scientific research and development and brand building, and strengthen their bargaining power in the industrial chain.