Double Pressure Falls On Textile Enterprises: Cotton Is Hard To Get And Demand Is Weak.

Qingdao: more shipments and less cotton to Hong Kong, a warehouse is hard to find.

Recently, enterprises engaged in cotton import trade have been somewhat sad. Due to the slow speed of cotton shipments to Qingdao, the cotton import port, the most important cotton import port in China, has seen a significant backlog of cotton.

Now, the newly imported cotton stores are the most troublesome thing for traders.

In the Qingdao Free Trade Zone, He Ying is regarded as an old woman who imports cotton trade. If she has cotton to port, she will have to deal with the warehousing enterprises here.

In previous years, she could arrange her own goods by telephone, but this year, because the warehouse was too tight, she had to put more energy into finding warehouses.

He Yingying, deputy general manager of Qingdao Zhong Xu logistics company, told reporters: This is one.

In a familiar logistics enterprise, he learned that goods were about to be issued, and immediately set 500 tons of cotton storage space.

In fact, despite the mobilization of resources accumulated over the years, He Ying failed to fully manage the import of cotton imports this year, and with the subsequent supply of goods coming to Hong Kong, the current storage costs are rising.

The director of a logistics company told reporters: "one ton a day will cost 1 yuan more, 1 yuan 2, 1 yuan 4, and last year's price is less than 1 cents."

In a large warehousing enterprise in Qingdao, the reporter saw that most of the bundled cotton in the warehouse had been stacked near the roof.

The head of the enterprise said, "6 of the 9 warehouses here have been fully stocked with cotton, and the other 3 have almost lost 6 of the storage capacity. The cotton stocks in the same period last year were only about 7000 tons, but this year they reached 22000 tons, exceeding 2 times."

Zhang Yi, deputy general manager of Qingdao cotton logistics company, told reporters: the volume of imports is increasing, but the sales rate of the consignment of cotton from customers is slower than that of customers.

Because the warehouse is difficult to find, many cotton even after the port has not been discharged from the container, directly placed in the dock, resulting in the cost is nearly 2 times higher than the storage.

The quota is slow to release. It is a little difficult for producers to get cotton.

What causes the import of cotton into the country this year? As the downstream end user textile enterprises are very enthusiastic about purchasing cotton, only because they can not get the import quota of cotton, the enterprises can only sigh for cotton.

Liu Yunyong is a medium-sized Shandong.

Such cheap imported cotton is not for use.

According to the current regulations, cotton is restricted to import commodities, and enterprises must apply for quotas.

However, the import quotas that have been issued in recent years have not been seen this year, and enterprises can not afford to buy them. This makes the warehousing enterprises who wish to take more goods be anxious.

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Zhang Yi, deputy general manager of Qingdao cotton logistics company, told reporters: we often call our customers to the factories and urge them to take delivery. But for some reasons, the most important thing is that they can not go through customs without quotas.

According to the data from Qingdao customs, as of March this year, the average price of imported cotton to shore was 16275 yuan per ton, 3374 yuan lower than the domestic market, plus the related quota tax rate, and 2871 yuan per ton cheaper than the domestic market, forming a clear price reversal.

Because China has no restrictions on imported cotton yarns, foreign cotton yarns that are dominant in raw material costs have begun to pour into China in recent years, and many domestic textile enterprises have begun to lose traditional markets.

Liu Yunyong, manager of Fengyuan textile factory in Shandong, said, "you are like the cotton yarn we sent to Guangdong, and we did 12 or 16 pieces at that time. Later, we could not do this market, because they were very large. When we came in, we made 12 16 pieces and the price was totally 1000 yuan with them, so we almost gave up such a low count yarn in Guangdong market, and there was no way to compete.

According to statistics from the General Administration of customs, in February this year, China imported 123 thousand and 500 tons of cotton yarn, 28 thousand and 500 tons of cotton yarn exported, and 95 thousand and 100 tons of net imports, an increase of 99.16% in the ring ratio, a sharp increase of 213.29% over the same period last year.

Downstream demand weak textile industry faces double pressure

On the one hand, textile enterprises can not get cheap imported cotton because they have no quotas. On the other hand, due to the continuous impact of the outbreak of the financial crisis, the overall demand of the textile industry continues to be weak, and the textile enterprises are facing the double pressure of squeezing down.

In a textile company in Shandong, the reporter met chairman Li Jixu.

As one of the most powerful textile enterprises in the region, Li Jixu told reporters that the biggest difference between this year and previous years is the difference in raw material cotton reserves.

Li Jixu, chairman of Shandong Shun Tian Textile Co., Ltd., told reporters: a company like ours has 3000 tons and 5000 tons. Sometimes you get ten thousand or twenty thousand tons in the autumn as in the past. Almost 80% of the production is enough in the whole year. At the most, it is good to store 3 months to half a year.

Li Jixu told reporters: there are many reasons for not being able to inventory, domestic cotton prices are higher, and they are worried about crowding out funds, but the most important thing is the continued weakness of downstream demand.

At present, enterprises have shifted the direction of export oriented production to the domestic market, and reduced the competitive strength of low count yarn production, but still can not achieve full load production.

Li Jixu said: now 30 to 50 tons of cotton per day, if open production, at least 50 to 80 tons a day.

Binzhou is the most important textile base in the northern part of China. Since the second half of last year, the demand for cotton in the international and domestic markets has been in the doldrums. Many textile enterprises have reported that they seldom receive large orders at present, and they are basically small and medium-sized orders.

In addition, textile enterprises also face continuous increase in labor and hydropower production costs.

Liu Yunyong, manager of Shandong Fengyuan textile factory, told reporters: the overall market economy of the market itself is not very good, plus foreign countries.

Insiders: the quota of cotton imports is facing difficulties.

Many enterprises are hoping to get the quota of imported cotton to get rid of the current predicament.

But industry analysts believe that, because the domestic cotton prices directly affect the farmers' willingness to grow, the cotton planting area has declined significantly, and the decision-making level is facing a dilemma in the quota allocation of imported cotton.

It is understood that from 2009 to 2011, cotton experienced a surge from 18000 yuan to 33000 yuan per ton, and then plunged down to 20000 yuan.

The sharp fluctuations of prices have left many cotton farmers at a loss. In order to stabilize the market, the state began to purchase and store cotton at the price of 19800 yuan per ton from September last year. As of the end of March 31st this year, the ratio of storage and storage accounts for 47.43% of the total annual output.

However, such a large amount of purchase and storage did not lift the market price of cotton, and cotton spot price remained at around 19400-19500 yuan per ton in April.

The amount of storage is relatively stable, but the price has always been weak, and the spot price of cotton is still lower than the state's purchase and storage price.

Since the purchase and storage and quotas are the main means of regulating the stock of cotton in the market, the issue of quotas is particularly concerned by traders and farmers.

At this time, if the state quotas have large quotas, it means that more imported cotton will flow into the Chinese market. This time may have a certain impact on the domestic market, so the state is very cautious and careful at this stage.

Data show that in 2011, China's cotton output was about 7600000 tons, but consumption reached about 11000000 tons. The gap between supply and demand has enlarged trend.

At the same time, cotton planting income has further declined. Under normal circumstances, rice and cotton planting benefit ratio is 1:12, but in recent years, this ratio has dropped to 1:7.5, and cotton growers' willingness to grow is declining year by year.

According to previous surveys conducted by the China Cotton Association, the cotton planting area decreased by 10% over the same period last year.

Insiders believe that before the end of spring sowing, the probability of issuing cotton quotas is not high.