Cotton Prices Plummeted And Cotton Producers Switched To &Nbsp; Cotton Textile Industry Is A New Round Of Shuffling.

Affected by the drop in cotton prices and sluggish demand, the whole cotton textile industry is in a recession. Cotton growers, cotton processing enterprises and textile enterprises are all crying hard.

Cotton processing enterprises stop production or half stop production, cotton textile enterprises slow sales, cotton farmers have "abandoned cotton from grain".

According to the insiders, the cotton growers will turn the new product into a new cycle, and the current industrial chain of cotton processing and cotton textile enterprises will be in a new round of industry reshuffle, and some small and medium-sized enterprises will be forced to withdraw from the market.

Cotton prices slump and cotton farmers switch production

Dezhou, Shandong, is located in the northwest plain of Shandong Province. It is a traditional cotton producing area. It is also an important textile base in the whole country.

Ma Yuzhen house in the old town of Wuzhai County, Dezhou, has planted 13 mu of cotton, and this year a total of 3300 kg has been harvested.

According to the Dezhou Cotton Association's monitoring, at present, the purchase price of grade four seed cotton in Dezhou is about 7.8 yuan / kg, down by 40% over the same period.

Last year, the purchase price of grade four seed cotton reached the highest level of 14.4 yuan / kg.

Wang Xijun, member of the China Cotton Association and the president of the Shandong Xi Jin county, he told reporters that the price of cotton is low this year, and the profit margins of cotton farmers are too thin. Many cotton farmers have already "abandoned cotton from grain".

Ma Yuzhen said: "when planting cotton is time-consuming and laborious, it will reduce at least three or four months' working time compared with grain and cotton seed. If we earn seventy or eighty yuan per day, we should make a difference of seven thousand or eight thousand yuan between seed cotton and grain."

It is understood that Dezhou is a large cotton growing market. The annual cotton planting area is 2 million to 3 million mu. In recent years, the area has declined sharply, and cotton farmers have "abandoned cotton from grain".

In 2008, the cotton planting area in Dezhou was 2 million 900 thousand mu, 2 million 310 thousand mu in 2009, and 1 million 550 thousand mu in 2010.

In 2011, when the cotton price in the previous year was relatively high, the area rose to 1 million 600 thousand mu, up by only 3% over the same period last year.

Many cotton farmers have plugged their cotton plants earlier this year and planted wheat.

According to the cotton association of Dezhou, the cotton planting area of the whole city will decrease by 20%-30% next year.

Cotton enterprises collectively "stick to the stick"

Wucheng County Cambridge Cotton Industry Co., Ltd. is a large cotton processing enterprise in the local area. Recently, reporters saw here that the factory area was quiet, and four or five people squatted in the cotton pile and lazily picked up "three silk" (chemical fibers, silk, linen, hair, plastic rope, cloth block, etc.) mixed in cotton.

Sun Ronggui, general manager of the company, told reporters that it was abnormal to start from last month, but only when the old customers needed it.

He said that the enterprise is now "two difficult", one is the seed cotton is not good to accept, the cotton farmers reluctant to sell mentality is very strong, the other is the price of leather cotton is low and difficult to sell.

Last month, the company basically ran out of money, and this month it is estimated that it will lose thirty thousand or forty thousand yuan.

The situation with Longxiang cotton Co., Ltd., which is separated from Cambridge company, is equally bad.

When the reporter came to the workshop of the enterprise, he saw a worker dozing in front of the machine.

Lv Baofeng, the head of the company, told reporters that the business is now half started, mainly to retain workers and to maintain some old customers.

Sun Ronggui and Lv Baofeng recalled that the cotton market of last year to this year can be seen as ups and downs.

In September of last year, new cotton was listed, and Sun Ronggui sold the first batch of lint at the price of 12300 yuan / ton. After that, the price rose rapidly, and by the middle of November, it had risen to 32800 yuan / ton.

"Since then, good days have come to an end, and prices have fallen all the way, and now they have fallen to 19000 yuan / ton level."

The linen processing enterprises are in trouble, and the next spinning industry is also suffering.

Wan Yongming, director of Huili cotton industry in Handan, Hebei, told reporters that the company has 18 thousand spindles, but only 6000 spindles are currently in operation.

The product is sold at 28 thousand yuan / ton, and the cost price is above 29 thousand yuan / ton.

"Even if we lose money, we can't stop altogether, otherwise we can't maintain workers and old customers."

He said.

Wuyi County Huayi Group is an enterprise mainly producing worsted cotton yarn. Meng Qingshun, chairman of the group, told reporters that according to the current market price, the company loses 1500 yuan per ton of cotton yarn.

"At present, due to the relatively low demand in the downstream, spinning mill inventory is backlog, and now we can only stick to it."

He said.

Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that since the beginning of March this year, cotton prices have dropped sharply as cotton prices have dropped sharply. Textile enterprises are operating very hard.

In 5-7, 80% of the local small and medium sized cotton textile enterprises ceased production and limited production, and their difficulty was no less than the impact caused by the financial crisis in 2008.

Since the end of August, cotton prices have improved as cotton prices have stabilized and picked up.

Since the middle of September, the spot price of cotton has continued to decline, which has a certain impact on the downstream market. The purchasing intention of weaving and clothing customers is not strong, resulting in the sale of cotton yarn is blocked, and the average operating rate of cotton yarn enterprises is only about 70%, and production and operation are again in a predicament.

Structural adjustment of industrial chain is the key.

Ma Junkai said that due to the weak cotton production base and the substantial increase in production costs, the price fluctuation caused the whole industrial chain to encounter difficulties, which caused the greatest impact on cotton growers. This has seriously affected the enthusiasm of cotton growers, and the planting area of some cotton producing areas has continued to decline.

For processing enterprises, the downstream demand is flagging and the export environment is not optimistic. This is the biggest problem.

Sun Ronggui said: "the biggest problem now is that I can't see spring. Every day I receive many industry information on my cell phone, but everyone is a hopeless voice."

Meng Qingshun said that domestic textile enterprises have occupied the market and developed rapidly over the years with low raw material cost and labor cost advantages.

In recent years, domestic labor costs have risen rapidly, the cost of domestic cotton textiles has increased, and international competitiveness has declined.

It is understood that the 110 Canton fair paction data is not optimistic, European and American orders are not enough, the reduction of 20% to 30%, and 6 months less than the total number of orders accounted for more than 80% of the total, the lack of long list.

According to the analysis of the industry, although the national temporary purchasing and storage policy has stabilized the cotton price, the new round of reshuffle is still inevitable.

China's labor costs continue to rise, and domestic cotton prices are higher than the international cotton prices for a long time. The situation of tight funds will also continue. These unfavorable factors for cotton spinning industry can hardly be fundamentally changed. Therefore, the cotton spinning industry will have a new round of big reshuffle, and a group of enterprises with poor capital and technological strength will be forced to withdraw from the market.

Ma Junkai believes that for processing enterprises, structural adjustment is the key, and only products can be improved.