A Record Of Internal And External Cotton Prices Weakens China'S International Competitiveness In Textile And Clothing Industry

The record price difference between Chinese cotton and imported cotton is small and medium.

This contradiction is being staged for a wide range of production and production restrictions.

Purchasing director of a large cotton textile enterprise in Guangdong told reporters that since May, the price difference has been expanding at almost 1000 yuan per month. The price of imported cotton after sliding is almost 4500 yuan lower than that of similar grades of domestic cotton, and the selling price of imported cotton quotas has soared to 3500 yuan / ton.

According to the estimation of Gao Fang, Secretary General of China Cotton Association, the cotton import volume of 2011 cotton year (September 2011 -2012 August) reached 4 million 500 thousand tons, more than 2006 annual record.

What does not match this situation is that there is no sign of improvement in the terminal textile enterprises.

The person said that gauze yarn or clothing inventory high, so that the textile enterprises with tight funds have to choose to limit production or even stop production.

The monthly report on textile industry released by the national development and Reform Commission in May also showed that the growth rate of major economic indicators such as production, export, domestic sales and profits in textile industry was still significantly lower than that in the same period last year.

Hoarded imported cotton

Attracted by the huge price gap, a large number of imported cotton began to hoard in Chinese ports.

The foregoing Guangdong textile enterprise personage introduced, traders through the payment of 20% deposit way to import cotton to the domestic port bonded warehouse, to pay a small warehouse storage costs, until the order, quota price is appropriate when payment will be taken to pick up the goods, complete the paction.

The warehouses of Huangdao port in Qingdao are filled with imported cotton. In the past, the utilization rate of these bonded warehouses was only around 70%, but since the end of last year, the utilization rate of warehouses has been kept at 100% because of imported cotton queuing up.

There are only 3 bonded warehouses in Huangdao port which normally store cotton, and now it has increased to 7.

The above textile enterprises said that in the past, traders had tens of thousands of tons of goods in hand. Even now, tens of thousands, even 100 thousand tons of goods were already in the minority.

First textile network analyst Wang Qianjin said, generally speaking, imported cotton is 1000 yuan cheaper than domestic cotton, which is normal. In 2009, when the financial crisis happened, the price of the imported cotton was abnormal upside down, but the price difference of such a large price of 4000-5000 yuan had never happened before.

He believes that there are two main factors leading to the record breaking price of cotton in and out of the world: the aggravation of the international financial crisis and the serious imbalance of supply and demand in the context of the global cotton production increase. The commodities, including cotton, have experienced the most extensive and the biggest decline after the financial crisis. The current price of US cotton has dropped by nearly 50% compared with the same period last year. Last September to March this year, the Chinese government's collection and storage of the market not only stabilized the domestic cotton price but also partially stabilized the international cotton price.

This temporary

Finally, the price of 3 million 125 thousand tons of lint has been collected at the price of 19800 yuan / ton, so that the price of domestic standard cotton has been stable 19300-19600 yuan / ton since the end of last year to March this year, and gradually dropped to 18000 yuan / ton in recent months.

Gao Fang made a detailed analysis of the supply and demand of the 2011 cotton year. She said that the output data of the development and Reform Commission, which led the departments to consult, was 7 million 200 thousand tons, and the China Cotton Association estimated that the number of imported cotton would reach 4 million 500 thousand tons in 2011, and the policy would take up 3 million 125 thousand tons, but the actual amount of imported cotton would be larger than this data, and the consumption of cotton would be estimated at 9 million tons.

According to the monthly report of May released by China Cotton Association, the discount of imported cotton is RMB 15366 yuan / ton after deducting the sliding tax, which is nearly 4000 yuan / ton less than that of the Chinese cotton price index (grade 328 cotton) 19086 yuan / ton in the same period.

In June, the price gap continued to expand.

This huge price difference is considered to have weakened the international competitiveness of China's textile and clothing industry.

The textile industry said that compared with the cost of cotton used by competitors such as India and Bangladesh, China's textile and garment industry has a more negative factor besides the rising labor costs and the RMB exchange rate.

But he also mentioned that even though the cost advantages of China's textile and clothing are no longer there, the advantages of technology and supporting industrial chain are still obvious.

Policy disputes

The temporary cotton purchase and storage policy in 2011 has created a by-product of the huge price difference between inside and outside cotton, but it has effectively prevented the ups and downs of cotton prices.

Zhang Xianbin, director of the economic and Trade Department of the NDRC, commented on the National Cotton Conference in mid May. This policy has kept the basic stability of domestic cotton prices, created a predictable market for production and business enterprises, protected the interests of cotton growers, and effectively prevented large cotton production from falling down this year.

He said that any policy is not perfect. The implementation of the temporary purchase and storage policy is a difficult choice. - from the perspective of stabilizing China's cotton production, we should raise the price of storage, but the price should not be too high from the perspective of maintaining the competitiveness of textile exports.

According to the just released 2012 year's temporary storage and purchase plan, from September to March next year, the State Reserve will open up the stock at the price of 20400 yuan / ton, and the price of storage and storage will be increased by 600 yuan / ton compared with the previous year.

The market estimates that the new year's storage capacity may be up to 2 million tons.

The second policy that can be expected is the issuance of imported cotton quotas.

Wang Qianjin said that China's cotton policy has always sought to balance the two ends of the chain of interests between protecting cotton farmers and protecting textile enterprises. The collection and storage of the imported commodities is good for cotton farmers, and the quota for the issuance of imported cotton is good for textile enterprises.

In fact, in the middle of 4 months, the national development and Reform Commission issued 1 million tons of quota, of which 500 thousand tons were the remaining portion of the quota of 2 million tons at the beginning of the year.

It's 500 thousand tons.

According to customs statistics, 1-5 months ago, China imported 2 million 580 thousand tons of cotton, an increase of 113.8% over the same period last year.

As of May, 2011 cotton imported 4 million 250 thousand tons of cotton per year, an increase of 103.3% over the same period last year.

Wang Qian said that the possibility of increasing the import quota of the government was not ruled out. The current situation of textile enterprises is also one of the issues that must be paid attention to in policy control.

According to the situation report of the textile industry in May, since 2012, under the influence of macroeconomic environment, domestic and international market demand has weakened. The slowdown in the economic growth of China's textile industry is still continuing, and the growth rate of major economic indicators has decreased significantly compared with the same period last year.

Among them, two key indicators of export and domestic sales are still not ideal.

In 1-5 months of 2012, China exported 90 billion 642 million US dollars of textile and clothing, an increase of 2.06% over the same period last year, an increase of 24.47 percentage points lower than that of the same period last year, which is 6.64 percentage points lower than that of the same period in the same period of the year.

Wang Qianjin said that if the price rise factor is deducted, the actual export volume of the textile industry is still negative growth.

The growth slowed down in the textile industry. In 1-5 months, the output value of the textile enterprises above the scale was 1 trillion and 757 billion 158 million yuan, up 13.44% over the previous year.

18.51 percentage points.