Chongqing Cotton Prices Plunge High "Hurt" Textile Enterprises

Reporters learned in Nanping farm market, Baihua rice 8~9 yuan / kg, red peanuts 8.5 ~ 10 yuan / Jin, and the first two weeks, white rice per catty is 6~7 yuan.

In the new century, Chung Bai, Yonghui and other supermarkets, the price of white peanuts is 9 yuan / kg, and the red peanuts are sold to 12.9 to 14.8 yuan / Jin.

Nanping farmers market, a stall owner told reporters that the new peanut is the fastest in early October before listing, the market is sold on stock, inventory is insufficient, new products are not listed, the price is naturally expensive.

The price of peanuts has gone up. Will the price of peanut oil go up?

A supermarket purchasing official said.

Reporters learned from hundreds of supermarkets, new century, Yonghui and many other supermarkets that the price of peanut oil has been formally raised in May.

Analysis of the industry, the new peanuts after listing, can ease the pressure on raw material prices.

However, this year's peanut sown area and expected output have decreased compared with last year, and the drought in Shandong, the main producing area of peanut, is becoming more and more serious.

Peanuts cut production will bring raw material prices, peanut oil or usher in a new round of price increases.

High platform diving hurt textile enterprises

At the beginning of last year, the domestic cotton price, which took a roller coaster, continued to perform high diving.

According to the data released jointly by the national development and Reform Commission price monitoring center and the China Cotton Association, the domestic cotton price dropped from 31241 yuan / ton in March last year to 18325 yuan / ton at present, a drop of 41.3%.

However, a reporter survey found that the fall in cotton prices did not bring benefits to textile enterprises and consumers.

Not only did the textile enterprises complain, but the clothing on the market did not depreciate.

Recent two years

Price surged and plummeted.

Over the past two years, domestic cotton prices have plunged into a vicious circle.

From September 2010, cotton prices surged from 18 thousand yuan / ton to 30 thousand yuan / ton, up to 34 thousand yuan / ton.

Starting in September 2011, it also plummeted from 34 thousand yuan / ton to 19 thousand yuan / ton in December 2011.

Recently, cotton futures and spot prices have dropped to the lowest point of the year.

As of 22 days, China's cotton price index for the 18325328 grade cotton national weighted average price of 18325 yuan / ton.

"30 thousand yuan per ton is supposed to be high."

Yesterday, Zhuo Chuang consulting cotton industry analyst Sun Liwu said in an interview with reporters, a large number of hot money into speculation is pushing hands.

According to Sun Liwu analysis, domestic demand has been maintained at around 8 million tons, plus the volume of imports, which is much larger than demand.

In the downstream terminal market, the international consumer market has been sluggish, and the output of cotton textile products has shrunk considerably compared with previous years. The weak market demand has also reduced cotton prices to a certain extent.

High and low enterprises suffer

Cotton prices continue to decline, which is not good news for downstream textile enterprises.

Zhou Wei is the general manager of Hechuan He Yi Textile Co. Ltd., which has been exporting grey cloth to the Middle East market for a long time.

"Many people believe that the reduction of cotton prices is good for textile enterprises, but in fact, it brings a lot of risks to enterprises."

Zhou Wei said that the decline in cotton prices will be pmitted to downstream textile enterprises that produce cotton yarn, grey cloth and clothing. Because of the psychology of "buying up or not buying down", textile enterprises will reduce orders, while cotton demand will decrease, and cotton prices will continue to fall, resulting in a downward trend in prices.

At the same time, customers will also reduce product prices for this reason.

"The choice we are facing now is either to stop production or to protect the market at a loss."

Zhou Wei said with a bitter smile.

Domestic cotton prices remain high

"Cotton price's impact on textile enterprises is mainly from domestic and foreign cotton price inversion, which has weakened the competitive advantage of export enterprises."

Sun Liwu said that the cost of using cotton in domestic textile enterprises is higher than that of foreign textile enterprises, while the price of export textile products keeps the same price as foreign products. The difference in the cost of cotton consumption is weakening the international competitiveness of domestic textiles and garments and other export commodities, resulting in an increase in export speed and a worsening of external losses.

The reporter has learned that in addition to giving priority to the import of cotton yarn, finding alternative alternatives has also become another way to reduce risk.

Li Yong, Secretary General of Chongqing textile and garment trade association, told reporters that in the face of the variable cotton market, there are some new changes in the textile industry this year. For example, the ratio of textile to cotton is decreasing, and the consumption of polyester and other substitute products is increasing.

At the same time, some textile enterprises have also adjusted their product mix accordingly.

Non falling and rising

"Cotton prices fall, basically will not cause the end of cotton textile products prices."

Li Yong, Secretary General of the Chongqing textile and garment trade association, analyzed the proportion of raw materials to cost in a garment industry. The proportion of labor cost increased from 15% to 30%, and the proportion of energy cost increased from 10% to 15%.

"Labor costs and energy costs run against the impact of raw materials on terminal prices."

Li Yong said, especially for the brand clothing enterprises, especially in the positioning of high-end brand enterprises, because the added value of products is higher, raw material fluctuation has less impact on them.