How Can Textile Enterprises Overcome The Difficulties Of Raw Material Price Differentials?

Two years ago, cotton prices kept high. Textile enterprises A year ago, the cotton price of "stumbling" never let textile enterprises lose their grip. This year, nearly 5000 yuan per ton of cotton price difference made them face the test of life and death. Textile is cold and warm, and cotton price is not around. Why does cotton price fluctuate and textile enterprises get hurt?

　　 China Textile According to the Federation of industry statistics, the price difference between domestic and foreign cotton has been widening since this year. Up to now, the highest price difference per ton has reached 5000 yuan. On the one hand, the price gap is constantly widening, making domestic cotton consuming enterprises more willing to choose imported cotton and cotton yarn as raw materials, and domestic cotton in addition to entering the national treasury, the actual sales situation of the market is not optimistic, so the upstream cotton production is affected. On the other hand, under the control of import quota control, many cotton spinning enterprises actually can not purchase imported cotton, and some enterprises mainly use domestic cotton as raw material, which leads to the upside down between high raw material cost and low product price, and directly leads to loss of cotton enterprises, and ultimately makes the downstream of cotton city need to shrink.

The impact of cotton textile enterprises is the most direct and intense. At present, China Cotton Spinning Association's cotton textile business has lost 40% of its losses. The head of a cotton mill in China said that the procurement of cotton raw materials now accounts for 70% of the cost of the enterprise, plus the price fluctuating, and the gross profit is only 3% to 4%. Domestic cotton can not afford and imported cotton can not be bought. It is forcing some enterprises to find another way out and choose to invest and build factories in other countries.

　　 Cotton price The reality is that despite the advantages of price and technology development, polyester staple fiber and viscose staple fiber have begun to partially replace cotton. However, the recent market shows that almost all cotton textile enterprises that use cotton as raw materials are in a state of loss; at the same time, the mixed textile enterprises which use cotton and chemical fiber are in between micro deficit and small profits; and the new fiber enterprises without cotton and all use of chemical fiber have made some profits, but their profitability has dropped sharply compared with previous years.

Reporters interviewed a person in charge of a local cotton association, his words broke the cause: the international market downturn and the high cost of textile enterprises, is the main reason for the cotton textile industry to enter the "cold winter". Especially in the cost of textile enterprises, cotton accounts for 70%, and cotton prices determine the life and death of textile enterprises to some extent. Under the influence of cotton quota management and purchase and storage management, Chinese textile enterprises should bear a price difference of several thousand yuan per ton of cotton in international competition, which is the reason why China's textile manufacturing level is not low, but now it is generally losing money.

The textile industry that has been developing for many years can not afford a blow to cotton price? How can we solve this dilemma?

Industry experts believe that to break through the bottleneck of raw materials and ensure steady development, adjustment and upgrading of the industry has reached an unavoidable level. In particular, many small and medium enterprises in the manufacturing sector are characterized by low profit margins, low concentration and weak ability to resist market risks, and are most vulnerable to fluctuations in raw material prices. Now, these enterprises should not only pay close attention to the price of cotton, but also adjust the structure of fiber raw materials, such as the development and use of alternative raw materials while changing the cotton spinning business.

In addition, it is also a good policy to increase the added value of products through brand building so as to solve the cost pressure of raw materials. In recent more than 50 domestic textile and clothing listed companies issued the early warning, brand clothing, especially men's clothing, but still maintained steady growth, seven wolves and other individual enterprises estimated net profit of the highest increase of 50%. It is not difficult to see that compared to the decline in the performance of the textile industry, the brand clothing listed companies' performance growth trend is still good. In terms of brand clothing, the cost is no longer a major measure of price. The gross profit margin of the brand is relatively high, and the space for raising the price is even larger. Many enterprises are forced to start their own brand in embarrassment and difficulty, so as to calmly tackle the constraints of raw material price fluctuation. In the future, cotton prices remain largely uncertain, and the textile industry is still improving for a long time. For this reason, textile enterprises need to focus on the long term, take the initiative to adjust, accelerate the pace of spanformation and upgrading, and avoid the risks brought about by the fluctuation of raw material prices.