Cotton Raw Material Purchase Accounts For 70% Of Enterprise Cost.

Affected by the price shocks of cotton, Textile industry Is suffering from no small impact. "We have a local enterprise last winter inventory of cloth until now, a loss of about 400000 yuan." Li Fasheng, general manager of Yinfeng Garment Making Co., Ltd., Jingzhou, Hubei recently revealed that this is a big blow for small businesses with annual output value of around ten million yuan.

It's not just small businesses that hurt, but big businesses are no exception. Mr. Li, a large cotton yarn enterprise in Dezhou, Shandong, said that cotton prices rose all the way last year and raw materials were tight. Many textile companies in Jiangsu and Zhejiang had threshold when ordering goods. For example, 40 cotton yarn below must reach 15 tons, 50 cotton yarn, need to reach 10 tons to sign the bill. "There are hardly any more than 5 tons of bills this year."

Since May 11th this year, domestic cotton prices have continued to plummet. Clothing enterprise They dare not go down. "Before, underwear in Shanghai was basically in our underground list. There are many one hundred thousand sets of bills, but now these enterprises basically reduce their orders by half, some of them are less than half of the previous year's orders, or even twenty thousand or thirty thousand sets of small bills." Li Fasheng, general manager of Jingzhou Yinfeng Garment Making Co., Ltd. said, "today, the price of a product is 8 yuan, and tomorrow it may become 7 yuan."

Weng Rongdi, President of the group, said, " Yiwu Before the enterprise is to enter raw materials once every quarter, now it has been changed to enter once a month. Small businesses are more careful, and Yinfeng is now making the raw materials in 10 days.

Speaking of cotton prices, Zhou Yejun, director of the first cotton mill in Wuxi, Jiangsu, also said with emotion: "the purchase of cotton raw materials now accounts for 70% of the cost of our enterprises. The price is so volatile that our gross profit is only 3%~4%. Enterprises have already been unable to bear this year. Some textile enterprises in Zhejiang are planning to invest in other countries this year.

The spread of cotton prices at home and abroad has greatly weakened the competitiveness of China's textile and garment enterprises in the international market.

In March last year, the state issued a temporary cotton purchase and storage policy. Although this policy safeguards the interests of cotton farmers, it keeps the domestic cotton prices basically stable, but boosts domestic cotton prices higher than the international cotton prices.

Since September last year, the price of cotton in the international market has declined, and the price difference between the domestic market and the cotton market has been widening. The price difference reached the maximum of 4000 yuan / ton in December last year. In May 25th this year, after the Levy of customs duties and VAT, the price of cotton in the international market was less than 5460 yuan / ton in the domestic market. The price of cotton yarn in Pakistan is even lower than the price of cotton in China.

Domestic cotton spinning enterprises bear too high cost of raw materials, market orders and foreign trade exports. This year, China Cotton Association's survey of 17 provincial key cotton textile enterprises shows that in the first 5 months, the cumulative yarn output of Enterprises above Designated Size in China dropped by 1% over the same period last year.

"Now it's hard to make money, we can only lay more points and expand South market." Li Fasheng calculated the amount of money. In the past 95 centimeters, 100 centimeters, 105 centimeters and 110 centimeters, the four sizes of underwear were all the average price. If sold to the Guangxi market, Guangxi people would not need 110 centimeters because their stature was too small. Underwear That way, you can earn a little more money.

"It's a lot of trouble to do business without any difference, but it's difficult to survive." The shrewdness of the merchant's bones was revealed at this moment.