Xinjiang Textile Enterprises Are Eager For Cotton Price To Be In Line With International Standards

Recently, the cotton textile enterprises in Shihezi City of Xinjiang Eighth Agricultural Division welcomed intensive research from relevant national ministries and trade associations. There is only one reason: in the first half of this year, affected by the continuous downturn in international cotton prices, domestic cotton prices fell ceaselessly. As an important cotton producing region in China, Xinjiang Uygur Autonomous Region, cotton yarn sales became particularly difficult, cotton spinning enterprises suffered increasing losses, and individual enterprises have faced crisis.

Shihezi City of the Eighth Agricultural Division is the cotton planting master of Xinjiang Production and Construction Corps, and the cotton output of Shihezi City accounts for more than 1/3 of the whole Xinjiang. According to Li Hongjun, the general manager of Xinjiang Shihezi Hongyang Textile Co., Ltd., the company's annual production scale is 35000 ingots. Last year, it purchased 4000 tons of lint, and now there are still 500 tons unprocessed. In order to reduce losses, the company has taken a series of measures such as purchasing less lint, reducing staff and limiting production.

Hongyang Textile Company is not an example. According to relevant data from the Shihezi Economic Committee of the Eighth Agricultural Division of the Xinjiang Production and Construction Corps, from January to May this year, the operating rate of Shihezi cotton textile enterprises was about 78%, and the cotton yarn output fell by two digits year on year, generally in a loss state. A number of cotton textile enterprises in Shihezi Economic and Technological Development Zone and other places are also facing difficulties, with serious shortage of construction.

The ring spinning scale of Xinjiang cotton spinning enterprises has exceeded 5 million spindles, ranking 13th in China. Since this year, Xinjiang's cotton textile enterprises have encountered unprecedented difficulties, just like the whole country. Under the influence of many adverse factors such as the domestic and foreign economic situation and market environment, especially the continuous expansion of the price difference between domestic and foreign cotton, the main operating indicators of Xinjiang cotton textile industry, such as production, export, domestic sales, investment, and economic benefits, have all shown a downward trend.

According to the statistics of Xinjiang Autonomous Region Bureau of Statistics, Xinjiang textile industry There are 100 enterprises above designated size. From January to May this year, the total industrial output value was 8.01 billion yuan, a year-on-year decrease of 3.374 billion yuan; Loss making enterprises reached 66%, up 33% year on year. From January to May, 126400 tons of cotton yarn were produced, down 19.7% year on year. Among them, the production of cotton yarn in May was 27600 tons, down 14.9% year on year.

On July 9, China's 328 standard lint fell to 18168 yuan/ton, while the price of Xinjiang's 328 standard lint was 18300 yuan/ton, 1632 yuan and 1500 yuan lower than the storage price of the previous year, respectively, and 3200 yuan higher than the after tax price of the United States, India and other countries in Hong Kong.

Affected by the huge price difference at home and abroad and other factors, the number and amount of losses of Xinjiang cotton textile enterprises are increasing, and it is estimated that more than 70% of enterprises are in a loss state. Take a medium-sized textile enterprise with an annual production capacity of 60000 spindles as an example. The annual demand for lint is 10000 tons. If the purchase price of lint is 19800 yuan/ton~20400 yuan/ton, and the production price of 8900 tons of cotton yarn is calculated based on the current cotton yarn price, the loss has reached about 13 million yuan. In addition, the mainland garment manufacturers use imported cotton yarn and substitutes in large quantities, which makes the sales of Xinjiang cotton yarn more difficult.

The relevant person in charge of the Xinjiang Autonomous Region Textile Industry Management Office said that under the current market environment, Xinjiang cotton textile enterprises have lost their competitiveness completely due to the high cost of raw materials, and individual enterprises have encountered the pressure of survival. Compared with other provinces and cities in the mainland, Xinjiang cotton textile enterprises can apply for very few import cotton quotas due to the restrictions of the national measures for the distribution and management of import cotton quotas. Cotton textile enterprises are unable to import foreign cotton with lower prices.

In order to maintain the normal production of Xinjiang's textile enterprises and the sustainable development of the industry, as well as the stable income increase of cotton farmers, the Autonomous Region's Textile Industry Management Office has suggested that the Autonomous Region appeal to the state to take effective macro-control measures, stabilize the domestic cotton price, narrow the price gap between domestic and international cotton prices, as soon as possible to realize the integration of domestic cotton prices with international cotton prices, and help cotton textile enterprises get rid of the current dilemma of production and operation, Improve the competitiveness of the cotton textile industry.