Cotton Chain At The Edge Of "Stop"

Cotton is cheap to farmers, which has been transmitted to the whole. cotton spinning Chain.

The cotton price has not only been reduced, but also reduced rapidly. depression 。 And the whole cotton industry chain has also fallen into the edge of worrying.

Often the cycle is going on. This year's price slump may lead to a sharp shrinkage of cotton growing area in the coming year, which will bring new hidden dangers for its sharp rise and fall. Some experts suggest that it is most likely to subsidize cotton farmers with grain subsidies and encourage cotton farmers to set up. cotton Cooperatives are the best way to reduce planting costs.

At the beginning of November, in the Xiajin County of Dezhou, the main cotton producing area in Shandong, the air in the air was cold with early winter. And more cold than air, is along the 308 Provincial Road on both sides of the large and small cotton processing plant.

Zhang Changbao, general manager of Ruixin cotton plant, has been in the office for a while. For cotton purchase and storage of the status quo, he told reporters frankly: "now is how much, the amount of compensation, the market is really bad, worse than the financial crisis in 2008, can not do." Reporters in their factory area, 32 workers idle, standing at the door in the sun.

Zhang Changbao told reporters that in early July this year, the lint market fell to 15 thousand yuan / ton low point and then rose, they cotton processing last year, Chen cotton has a short profit, but a month later, with the new cotton listed, cotton factory immediately lose money. He collected 20 tons of seed cotton this year, and then no more cotton. So far three months have passed, and 20 tons of cotton have not been sold in the storehouse. At this time in the past, his cotton factory had to process 5 tons of -7 tons of cotton every day, and 30 acres of yard filled with cotton bags.

It seems that the days of large scale cotton factories are slightly better. In Binzhou Huimin County Lianyi Cotton Industry Co., Ltd., the reporter saw Sun Shengfeng, general manager, calling the people who bought cotton in the village to inquire about the purchase of cotton on that day. As the flier cotton industry adopts the cash settlement method, there are more than 30 Fixed cotton purchasers from the countryside to cotton and then sent to the enterprises. Now the enterprises can receive 10 tons of cotton per day. However, Sun Shengfeng said that at present, Huimin County, like his own business, accounts for only 1/10 of the purchase of cotton.

Insiders told reporters that the reason why many cotton companies delayed their opening was because they bought a lot of cotton at a high price in late last year, and then cotton prices fell sharply after the state adjusted cotton, causing some enterprises to suffer serious losses. The second is the national loan policy this year, which makes some small and medium-sized cotton enterprises unable to borrow money, and the lack of cash flow also causes some enterprises to stop working.

Reasons for "hard support" of cotton mill

The cotton merchants in the cotton field are short, and can be called a mirror of cotton spinning enterprises' recession.

According to a survey conducted by the Ministry of human resources and social security of Shandong province in late September, some small and medium-sized cotton textile enterprises in Weifang, Jining, Dezhou, Heze and other places all have limited production and stop production. Among them, Dezhou cotton mill lost about 30000000 yuan in the first half of the year, and therefore accumulated arrears of social insurance premiums about 30000000 yuan.

Even the cotton factory without stagnation is barely being maintained. Xiajin county and Ruixin cotton mill all the way across the Ruixin cotton mill, last year output value as high as 150 million yuan, but this year can reach up to 70 million, less than half. The factory manager Wang told reporters that the main reason why the cotton mill did not shut down was the fear that workers would not be able to start skilled workers again. It is reported that 70% of Dezhou's cotton mills are now operating at the margins of profit and loss.

Zhao Ruheng, chairman of Shandong Huimin Lu Jie cotton industry, told reporters that in the process of falling cotton prices, cotton mills are facing high prices and low prices. To a certain extent, it has squeezed profit space and even lost money. Therefore, for cotton spinning enterprises, the lower the price of cotton, the more difficult the enterprise is.

Zhao Ruheng said that in addition to the low cotton prices, the continued appreciation of the renminbi and the depressed European and American markets made the cotton spinning enterprises miserable. Coupled with the rise in electricity prices this year alone, the cost of products has increased by 200 yuan to 300 yuan per ton, and the wages of enterprise employees are also increasing year by year, with an average annual increase of 100 yuan / person. In the reality of tight money, if the enterprise has sufficient funds, it will also face the problem of financing difficulties. "Now the interest on loans has risen from about 1 cents to more than 3 cents, which does not include the fees charged to Guarantee Corporation. It should be said that the production cost of cotton spinning enterprises increased by 500 yuan / ton this year compared with the same period in the past year.

"Vicious circle" in towel Enterprises

Cotton farmers are reluctant to sell cotton prices, cotton prices are not willing to buy and sell prices upside down, the cost of spinning enterprises has increased sharply, limiting production, a Domino style "strange circle" thus formed. This is less than a year away from the booming cotton market last year.

In the eyes of Fu Qingmin, deputy general manager of Binzhou Yaguang group, there are many reasons for the emergence of strange circles. He told reporters that cotton prices plummeted this year, the root cause is oversupply. This year the world's cotton harvest, total demand of 25 million tons, output of 27 million tons; from the national perspective is also a bumper harvest year, output of 7 million 300 thousand tons, demand for 10 million tons, although there is a gap, but this gap has been filled by the global harvest; on the other hand, Europe and the United States economic downturn, cotton textile products orders reduced, while many orders to Southeast Asian countries, so that the downstream industry is worsening and underemployment, which also causes cotton yarn prices, cotton prices are low.

Reporters learned that, under the import quota restriction, at present, Yaguang 60% - 70% of cotton depends on imports, otherwise it will all depend on imports. The rest of the cotton is now being used in China, and because of the large fluctuation of cotton prices, there is no inventory.

For the current cotton price, Fu Qingmin said: "Yaguang in Binzhou area acquisition of grade 3 cotton price has more than 4 yuan, this price is not low. The policy protection price implemented in March has played a certain role. If there is no protective price, cotton prices may go down. Moreover, with the fall in commodity prices, the international price of cotton is also falling, and the protective price can also play a supporting role in global cotton prices. Fu Qingmin believes that cotton prices should be pushed up and plummeted in a short time, otherwise the blow to the whole cotton textile industry chain will be fatal.

In this regard, the Dezhou Cotton Association Ma Junkai's proposal is: cotton is only next to grain crops, the state should pay attention to cotton production as much as food. Now cotton farmers only have 15 yuan per mu of good seed subsidies, considering the increase in agricultural prices, cotton farmers should also enjoy 98 yuan per mu of agricultural subsidies.

In addition, the state can produce special funds to support the establishment of professional cooperatives for cotton farmers, so as to achieve the goal of unified seed purchase, seeding and drug use, thereby reducing labor costs, thereby fundamentally reducing costs and reducing labor intensity. Otherwise, this year's price slump will lead to a sharp shrinkage of planting area in the coming year, which will bring new hidden dangers for the sharp rise and fall of agricultural products.