Cotton Is Still Entangled With &Nbsp; Adjustment Is Accelerating.

Since the second half of last year,

On March 19th, at the four three annual meeting of the Chinese Cotton Textile Industry Association held in Changzhou, Jiangsu, many enterprises reflected the grim situation.

The operation of the industry is faced with outstanding problems, such as the continuous increase in labor, electricity and capital costs, and the difficulties of raising funds and raising the pressure of environmental protection.

The trend of cotton regulation policy in the future, how to adjust and pform the cotton textile enterprises under the enormous pressure of survival has become a topic of concern and heated discussion for the participants.

Cotton entangled

From the rise in 2010 to the fall in 2011, cotton prices fluctuated sharply.

The difference between cotton prices at home and abroad is the most prominent problem.

2011/2012 cotton year, due to the weak demand for the lower reaches, the international cotton price continued to decline, and the domestic price of cotton at the price of 19800 yuan / ton has caused a downward trend in cotton prices, and the price gap has been widening.

Due to quota restrictions, many enterprises are unable to purchase international low price cotton.

The huge cost of cotton making has greatly affected the international competitiveness of China's cotton textiles. India, Pakistan, Vietnam and other countries have taken advantage of the advantages of China's cotton yarn and seized a lot of market share.

It is estimated that in March 19th, the domestic cotton market price was 19564 yuan / ton, lower than the storage price, but it was 3000 yuan higher than that of the foreign average price per ton ~4000 yuan, and the cost of cotton in India and Pakistan was 7000 yuan ~8000 yuan per ton less than that in China.

"The price of India cotton yarn is cheaper than our domestic cotton price. How can we make cotton yarn, cloth and clothing competitive?" an official in charge of the business said.

Data show that in 2011, the number of cotton yarn exports decreased by 25.17%, the export volume of cotton fabrics decreased by 3.03%, the export volume of cotton bedding products decreased by 21%, and the number of cotton garments exports decreased by 7%.

In 2011, India, Pakistan, Vietnam and other countries took advantage of the cost advantage of cotton to seize our market share in the United States. 59% of the US imports of cotton products decreased from China, while Southeast Asian countries accounted for 54% of China's export growth.

On the one hand, excessive cotton prices affect terminal consumption and weaken the competitiveness of cotton textile enterprises. On the other hand, for cotton farmers, the cost of cotton planting is too high, and the current cotton price is less attractive compared with other agricultural products.

Surveys by different agencies show that cotton planting area will decrease by 10% this year.

Whether or not cotton prices should rise or fall is a tangled problem.

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Many enterprises have suggested that the state should directly subsidize cotton planting. At the same time, it calls on the departments concerned to increase the quota of cotton imports as soon as possible, and study a reasonable dumping plan.

How to fundamentally solve the cotton problem, many participants said that the existing cotton management system should be reformed.

Wang Tiankai, President of the China Federation of textile industry, said that China's cotton management system has continued the price of the administrative monopoly plan for a long time. At the same time, the number of import quotas and tariff rates has been strictly controlled through planned means. The double regulation of cotton has violated the laws of the market economy and seriously restricted the hands and feet of enterprises as the main body to allocate resources by using two domestic and foreign markets, which has affected the smooth operation of the industry.

He hoped that the government, in accordance with the principle of market allocation of resources, could provide enterprises with an environment conducive to fair competition. On the cotton issue, various departments should conduct extensive research, exchange and communicate more, and put forward policies to protect farmers and facilitate the development of the textile industry in accordance with the principles of market economy.

Xu Wenying, vice president of China Textile Industry Federation, said that cotton prices have become a key factor affecting the entire textile industry chain.

At present, the enterprise has already appeared panic mentality, worried about the storage of cotton through bidding way to raise the price of cotton, may further pull the price difference between the big country and outside cotton, leading another round of speculation.

The most urgent task is to issue cotton import quotas as soon as possible so that imported cotton can stabilize the excessive domestic cotton prices and store them at an appropriate time below 19800 yuan / ton.

The reserve cost is suggested to be subsidized by the national fiscal revenue from the high price in 2010.

In response to the demands of textile enterprises, Li Jinyi, deputy director of the State Economic and Trade Commission of the national development and Reform Commission, responded that the departments concerned will carefully consider the cotton policy and take account of all aspects of interests. The quota will be allocated as scheduled to meet the needs of enterprises, while the plan of throwing and storing is carefully studied.

The direction of pformation

In addition to the cotton price factor, the overall atmosphere of the industry has not changed fundamentally since 2012, which is related to the low demand at home and abroad.

The European debt crisis is still continuing, the demand for the international market is sluggish, and the growth rate of domestic demand is slowing down.

Many enterprises reflect that at present, large orders are seldom received, basically small and medium-sized orders.

While the external environment is not optimistic, the cost of production is increasing.

The survey shows that labor costs continue to rise in 2012, and the average monthly wage of weavers in Wujiang, Jiangsu is nearly 4000 yuan, while the price of electricity continues to rise. In Zhejiang and Jiangsu, the electricity consumption is increased by 3~4 cents per kilowatt hour.

Although the level of enterprise management and production efficiency is constantly improving, due to the superposition of costs and limited space for products to raise prices, most enterprises are unable to fully digest the rise of multiple costs.

In addition, the financing difficulties and financing problems of cotton textile enterprises are prominent, especially in small and medium-sized enterprises.

Some enterprises reflect that the interest rate of bank loans is above 30% of the benchmark interest rate, and enterprises can not get full loans, and the cost of financing has risen sharply.

For the difficulties and challenges facing the industry, Wang Tiankai said that for the vast majority of cotton textile enterprises, confidence building is the most important.

He believes that there are two reasons for the stable operation of the textile industry after the financial crisis: first, domestic demand has played a supporting role, accounting for a gradual increase; two, the restructuring of the textile industry has accelerated, resources are further concentrated on dominant enterprises and the industrial structure has been accelerated.

In a depressed market environment, it is natural for an enterprise to adjust its product structure and strengthen its internal management.

He suggested that enterprises should take a long-term view, increase their own adjustment, strengthen the interaction of industrial chains, and actively face difficulties and challenges.

For the direction of pformation and upgrading, Xu Wenying believes that the use of high technology to pform traditional industries has become the main driver of the structural adjustment of the textile industry, such as developing high-tech products, eliminating backward production capacity, increasing the proportion of automation and continuous production, and improving labour productivity.

At the same time, we should give full play to the role of the textile industry in expanding domestic demand and take account of both domestic and foreign markets.

Wuxi cotton market in the market is not optimistic about the situation, the implementation rate of 100%, production and marketing rate of 100%, 18 yuan for 10000 spindles employment, financial costs fell by 50%.

Zhou Yejun, director of Wuxi cotton mill, said that the key is to adapt to market changes, adjust promptly and react quickly.

With the increase in cotton costs, enterprises will strictly control the amount of cotton, increase non cotton varieties, and actively develop products with a small quantity of cotton.

The president of the black peony group, Ge Ya Fang, said that the increase of production factors and raw material costs is a problem that enterprises must face. Enterprises should strive to reduce production costs and achieve pformation in brand building.

In order to coordinate the pformation and upgrading of cotton textile enterprises, textile machinery enterprises are also actively developing advanced equipment.

During the meeting, participants visited Changzhou Tonghe Textile Machinery Manufacturing Co., Ltd.

The same and the latest development of automatic doffing compact spinning frame and full-automatic roving machine and other products attracted the attention of the visitors.

Zhu Beina, President of the China Cotton Textile Industry Association, said that improving efficiency is an inevitable direction. In the "12th Five-Year" period, the industry will pay more attention to product innovation, brand building, personnel training and energy conservation and consumption reduction. It is hoped that enterprises will change their development mode through product research and development, new raw material application, and constantly improve their competitiveness.