Raw Materials And Product Prices Are "Hanging Upside Down" &Nbsp; Textile Mills Are Unable To Advance Their Annual Leave.

Once, the textile industry made many people get rich overnight, creating countless tens of millions or even billions of township business owners.

Once,

According to insiders, because of the ups and downs of the textile industry, large scale closure of textile mills is not far away.

"This time

1 the workers gave advance leave in advance.

In December 10th, there was still more than 40 days before the Spring Festival, while some textile mills in Changyi gave annual annual leave to textile workers.

When faced with nearly 2 months' holiday, textile workers are not happy but worried.

"The boss just said that he had given the annual leave in advance, and there is no definite news about what time it will start after the year."

Changyi is a county city mainly composed of textile industry. There are thousands of textile factories in the whole region, and the textile products are spread all over the country, and are also exported to some developed countries such as Europe and America.

However, such a textile dominated city is suffering an unprecedented blow.

A large number of workers released their annual leave in 40 days ahead of schedule. This year is only a microcosm of the crisis in the industry.

"In the year 2011, the textile industry has been sluggish. If we are working hard now, the factory will lose more."

Mr. Yang, the owner of a textile mill in Changyi, told reporters, "I have been doing textile for more than ten years, and I have never encountered such a situation."

According to Mr. Yang, thousands of textile factories and textile related enterprises in Changyi have had varying degrees of influence.

"Now some factories are losing money, and some factories are losing money."

And for the entire textile industry is facing the problem, but also from last year's "crazy cotton".

"Last year, the textile industry's most basic raw material, cotton, had seen a substantial increase in prices.

In the craziest October, there was a myth that the price could rise by 1000 yuan a day, and the price of the corresponding textile products also increased, and it could rise by one thousand or two thousand yuan a day.

Recalling the textile products that went crazy last year, Mr. Li, a textile mill owner in Changyi, told reporters that "at the beginning of 2010, the price of finished yarn (one of Textiles) was only 15 thousand yuan per ton, but it reached 35 thousand yuan per ton in October.

At that time, many people did not dare sell the textiles that were processed. If they were afraid of selling today, they would lose their prices tomorrow.

2 more than half of the textile mills have been closed down.

Mr. Yu told reporters that although the price increase was only a few months, the textile products with a crazy price increase made some enterprises taste the sweetness. Some textile enterprises leaders began to purchase new textile equipment and increase production intensity.

Some people who were not engaged in the industry began to borrow money to buy Textile equipment and join the textile industry.

"Because of the sharp rise in textiles, the number of textile mills has increased by about three times compared with the beginning of 2010.

In some towns, there is almost a nationwide textile boom. "

Mr. Yu said.

However, the price of madness did not last long. On October 11, 2010, there was a huge turning point.

"I remember this day in my life. On October 10, 2010, I sold some of the finished yarn at 35 thousand yuan a ton.

And then on the second day, suddenly all the middleman refused.

From then on, textiles began to slide all the way. Although there was a short period of fluctuation, the trend of overall decline did not change.

By December this year, the price of finished yarn fell to 13 thousand yuan per ton.

At present, more than half of the textile mills are in a shutdown state, Mr.

"Now many textile factory warehouses are backlog with a large number of products. In the current recession market, many textile mills want to deal with the backlog of products, at least after the Spring Festival, which is the reason for many textile mills to put the year ahead of time."

In a textile factory in the development area of Changyi, the reporter saw that the machinery and equipment of the entire factory had stopped functioning, and there was no worker in the huge textile workshop.

"In the past, the factory workshop will be heard for 24 hours when the machine is roaring. Now, our factory has halted work.

Many months. "

Mr. Sun, the owner of this textile mill, told reporters that "factories like me that shut down factories in Changyi are mostly factories that are in operation and are in a state of losing money."

3 three main reasons for being trapped

So why is there a crisis in this year's textile industry? What caused decades old businesses to go bankrupt?

The first reason is that the export volume of textiles has shrunk considerably.

The reporter learned from the interview that China's textiles are popular with some European and American countries because of their low price and high quality.

However, since the outbreak of the European debt crisis, China's textile exports to Europe have been blocked.

"Qingdao textile list is estimated to shrink by 40%.

In addition, Pakistan, Bangladesh, Turkey and other countries are competing far less than China's low-cost advantages to compete with Chinese textiles. These countries offer some ten percent less than China, and our net profit is less than ten percent. Such orders can only be abandoned.

Mr. Liu, the manager of a foreign trade company which mainly exports textiles, told reporters that "the textile processing enterprises which are mainly export oriented are now having difficulty in surviving. A large number of foreign trade textiles originally exported to China will be sold domestically, which will increase the pressure on the domestic textile market."

"Exports can't be digested without going out.

Now, textile products are in a state of no road to sell.

The current situation of many processing enterprises attached to this industry can be imagined.

Mr. Liu told reporters.

The second reason is that the number of textile enterprises has been over saturated.

In less than two years, the number of textile enterprises in Changyi increased by three times.

"The cake is so much, it was eaten by one person. Now there are three people coming suddenly, so these three people will be hungry."

Textile enterprise owner Mr. Yu told reporters, "because of the temptation of textile price rise last year, many people have started to spin, which has caused the oversaturation of textile enterprises."

"However, this situation will not last too long. Now some textile enterprises have begun to shut down, and the next step is likely to go bankrupt and change careers."

Mr. Yu told reporters.

The third reason is that the rise in labor costs has dragged down businesses.

"At the beginning of last year, the wages of workers were 1400 yuan a month, and this year it has risen to a maximum of 2600 yuan a month, and the wages of workers have increased by half."

"The wages of workers in all walks of life such as construction, processing, catering and so on are rising. If the wages of textile workers do not rise, then they will face the embarrassment that no one can use," said Mr. Yu, the boss of textile enterprises.

4 the day of high profit is gone.

"Wages are rising, but prices are falling, even lower than last year."

Mr. Yu said, "the rising wages of workers make the profits of enterprises less, or we can say more losses. This is also a major problem facing the textile industry."

Once, the textile industry made many people get rich overnight, and the bosses with tens of millions of money were constantly emerging in township enterprises.

"As long as tens of thousands of loans are made for several machines, a few more workers will be able to earn no money.

This is the textile industry a few years ago, thus creating a lot of high price business owners.

However, this high profit industry, after last year's and this year's fluctuation, the high profit is gone forever. "

Mr. Yu said, "once a ton can earn thousands of dollars in profits, after this storm, hundreds of yuan or even tens of dollars in profits have been very good."

The downturn in the textile industry has made some people who blindly enter the industry suffer a lot. But after this storm, the textile industry will usher in a new adjustment.

"Perhaps after this adjustment, the profit distribution of textile industry will be more reasonable."

Mr. Yu said.

Text / graph reporter Yu Liang

Lose money

Price upside down of raw materials and finished products

"Some textile factories that have not stopped production during the financial crisis have been shut down for more than a month now, and they can not start up yet.

Now, many factories have overloaded hundreds of tons of inventory, and this part of the inventory wants to be consumed, at least until next spring festival.

In fact, as long as there is a ray of vitality, the factory will not stop working.

But now it's time to stop working, so long as the machine starts running, it's always losing money.

Textile factory owner Mr. Yu told reporters, "losing money is because the cost of processing is far higher than the profit from product sales."

"In addition to the wages of workers and the cost of electricity, the raw material of the finished yarn is 14 thousand yuan per ton. After processing, I sell the product, which is even lower than this.

That is to say, living in white and losing money.

Mr. Yu told reporters, "the raw materials of some factories were purchased last year. At that time, they were 20 thousand yuan per ton, and now they are processed, and they will lose money even more."

No one is willing to do business at a loss, so now more than half of the factories have been shut down.

"No downtime doesn't mean losing money, just because they don't want to lose their customers for a long time, so they have to lose money if they want to."

Mr. Yu said that because of the ups and downs of the textile industry, the large scale closure of textile mills is not far away.

"After this crisis, there will be a large part of the exit from the textile industry and choose to change careers."

In the interview, the reporter also learned that in this big wave, a textile boss of Tian's name chose to hang himself up because he could not bear the pressure brought by huge losses, leaving his company and family forever.