Cotton Spinning Industry Crisis To Accelerate Transformation Of Industry

Our country Cotton spinning Production capacity ranks first in the world, occupying half of the world. Now, in the face of problems such as sharp reduction in orders, rising labor costs, low and high cotton prices, quota restrictions and financing difficulties, many enterprises are "unable to turn around".

The summer of 2012 did not feel the warmth of domestic cotton textile enterprises. Butterfly Effect "The global economy has reached an impasse. Our cotton textile products have gradually lost their price advantage in the international competitive market.

Someone once said a very vivid saying, "the European debt is cold, the whole world takes medicine". Indeed, China is a big exporter, and commodity exports are an important engine for China's economic growth.

Cotton textile enterprises in the future how to develop? Is it going to continue to "wind up and snow" or wait for "spring blossoms"?

　 Cotton price upside down

Since the sharp rise in 2010 to the collapse in 2011, domestic and foreign cotton price inversion, downstream consumption weakness, export order reduction, financing difficulties and other issues have made the entire cotton textile industry chain bogged down in the shadow of the quagmire until now.

A cotton textile enterprise leader who did not want to be named in Zhejiang told reporters on the phone that cotton mills accounted for 60% of its cost. At present, the gap between domestic and foreign cotton prices is too large, and imported cotton is cheaper than domestic cotton per ton for several thousand yuan, so that enterprises can not get cheap imported cotton, and enterprises will face multiple pressures.

The official said that since 2010, the export business of the company has been shrinking year after year. The annual export sales volume is about tens of millions of dollars, and now the cotton price difference is so large that "it can be very good to receive several small bills". Now is also in the "wind and snow" before the trip, if we can not wait for "spring blossoms", it can only temporarily suspend production.

Shandong Zhuo Chuang information cotton analyst Sun Liwu told reporters in a telephone interview. Xinjiang The mainstream price of cotton is three yuan, the ton price of the warehouse in the mainland is 18450-18900 yuan (fixed settlement), and the cotton ton price in India is about 17500-17900 yuan. The import and export of high quality and cheap imported cotton into the domestic market has brought great impact to the domestic market as well as convenience for cotton textile enterprises to use more high-quality and cheap cotton. However, some enterprises have been restricted by quota restrictions, such as "too many monks and few meat" and high transfer costs, which have been greatly hindered by the use of imported cotton.

Reporters learned that in the international demand continued to slump, in the second half of 2011, India, Pakistan and Vietnam and other countries with low price advantage seized China's imports of cotton textiles in the United States about 50% of the 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 3000-4000 yuan higher than the foreign evaluation price per ton, and the cost of cotton per capita in India, Pakistan and other countries was 7000-8000 yuan lower than that in China.

According to the data from the China Cotton Textile Industry Association, the number of cotton yarn, cotton fabric, cotton bedding and textile garments decreased by 25%, 3%, 21% and 7% respectively over the same period in 2011.

External cotton detention port

The main reason for the large number of imported cotton comes from the misjudgement of many cotton middlemen on the cotton market, behind which is the continuous downturn of the cotton textile enterprises. At present, the domestic and foreign cotton sales are not smooth. The quota of the NDRC is not enough, but on the other hand there is a continuous supply of goods. On the other hand, there is a lack of import quotas and no customs clearance. Even if the cotton importers want to stop the loss, they will not be able to operate. Su Jianhua, senior industry consultant of Jinqiao textile network, said in an interview with reporters.

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"Cotton prices soared in 2010, attracting a large number of private capital inflows, but cotton prices plummeted rapidly, falling by more than 10 thousand yuan in two months. As cotton prices fell below 20 thousand yuan per ton, the national development and Reform Commission launched a 19 thousand and 800 yuan acquisition and storage plan for each ton. Because of the large number of national storage and storage, cotton middlemen have been seen as a signal of market boost, and thus the bulk of the order has resulted in a surge in cotton arrivals to the port in the first half of this year. Su Jianhua said.

Customs statistics, 1-5 months of this year, China's imports of cotton 2 million 579 thousand tons, a year-on-year increase of 103.3%. In May, domestic imports of cotton reached 502 thousand tons, 7838 tons, 1.5% from last month, 35 million 720 thousand tons, an increase of 247.1%.

As Qingdao's Huangdao port, the largest cotton import port in China, a large quantity of cotton is in the port.

Qingdao customs data statistics, 4 months this year, Shandong Port imported 790 thousand tons of cotton, an increase of 81.8% over the same period last year.

Su Jianhua said that more than 30 bonded warehouses in Huangdao port of Qingdao were all full, with a backlog of up to about 300000 tons. The backlog of cotton is not only in Qingdao ports, Shanghai, Zhangjiagang and so on, but some international cotton traders choose to store cotton in other ports such as Malaysia.

Traders of a cotton trading company in Shanghai, who do not want to be named, told reporters on the telephone that there are few people in Dingyuan's cargo ships. The quota of 1 million tons issued in May is very low. There are not many quotas in the market. Many people dare not order cotton from abroad. Now some enterprises are using the port spot, of course, some traders or importers are selling at a loss at the moment. Last year, the high price of US cotton sold at low prices this year, at least about 1000000 loss, and some losses amounted to tens of millions.

"From last year's international cotton futures in the second half of the year, 20 thousand yuan per ton, to the current international cotton futures 14 thousand yuan per ton. (plus tariffs and quotas and other domestic costs 19 thousand) the average loss per ton reached 3000 yuan, up to 5000 yuan, which does not include the cost of warehousing costs and the loan interest cost of 1.5 yuan per ton. Now most importers, traders and enterprises are suffering from "cotton import quotas", and some importers and traders have been putting down cotton for half a year. Su Jianhua said.

Data show that as of the end of June, the port of Huangdao in Qingdao had no customs clearance of more than 600 thousand tons of cotton, and customs clearance of foreign cotton inventory of more than 700 thousand tons.

Change in danger

"The wages of the workers in domestic enterprises are very high, and the cost of the enterprises is no less than the low cost era more than a decade ago. Because of the lack of recruitment, our enterprises' high investment facilities are often shut down because no one operates." Shandong Rizhao City three silver Textile Co., Ltd. is responsible for sales staff told reporters.

Lv Qian, a yarn analyst at Shandong Zhuo Chuang consultative conference, said in a telephone interview with reporters that some of the large domestic cotton spinning enterprises had opened up the market since the beginning of this year, and the phenomenon of selling profits has been extended. In the face of the increasing inventory situation, the two leading enterprises in China have already started less than 7, while the Shandong cotton mill has started to work at 5-6 or so. The phenomenon of downtime in Hebei is more obvious, and the downtime rate in the peak period is 90%. Lv Qian said.

Faced with the constraints of domestic and foreign factors, how can cotton spinning enterprises stand out in the face of adversity?

In a written interview with reporters, Wei Jin, a researcher at the Research Institute of textile and garment industry in China, said that the essence of the cotton spinning industry is to accelerate the transformation of the industry, improve industry technology, improve its own industrial chain channels, research and develop new products, ensure product quality, implement brand strategy, and maintain the competitiveness of the export market.

He said that the main way to upgrade the cotton textile industry is to promote technological transformation and eliminate backward equipment.

"At present, domestic Inflation The phenomenon is more and more obvious. The state has implemented the tight monetary policy, the bank loan procedures are cumbersome and the bank loans are "poor and rich", making the financing difficulty of cotton textile enterprises a common problem. Wei Jin said.

For this reason, Wei Jin put forward six suggestions.

First, we should increase government support, establish relevant policies of the state to support the credit of textile enterprises, and set up an industry research center to support the fund.

Two, in strengthening cotton market regulation and stabilizing cotton prices, relevant regulatory systems and regulations should be introduced, efforts should be made to improve market environment and maintain industry market.

The three is to solve the problem of high taxes and low taxes. The tax rate of cotton is 13%, and the sales tax rate of cotton spinning products is 17%. This kind of tax policy with high taxes and low taxes is obviously unfair to China's cotton spinning enterprises, and the tax on the input and output is generally carried out by 17%.

The four is to improve the issuance of cotton quotas.

Five, we should enhance the enthusiasm of cotton growers and introduce policies to encourage the expansion of cotton planting area and the improvement of cotton varieties.

Six is to promote the healthy development of industrial clusters. Cotton spinning enterprises: change in crisis.