Domestic Cotton May Rise With The Increase In Cotton Prices.

July, September. At the foot of Tianshan Mountain, a large piece of cotton is ripening. In the peak season of traditional textile demand, Hangzhou family cotton spinning The head of the raw material Department of the weaving enterprise is entangled in one thing: "should we increase the stock of cotton?"

Cotton prices have gone through a big lag and back to the starting point two years ago. This year, the domestic textile industry has been troubled by domestic and foreign cotton prices upside down, and the quota of imported cotton has basically been used up. The national development and Reform Commission has launched a new round of cotton temporary storage and storage, which is about to end. The cost of raw materials of domestic enterprises has a lot of pressure.

　　 The inventory of enterprises has been reduced a lot.

Two years ago in early September, the domestic cotton price started from 19000 yuan / ton, rising to 33000 yuan / ton in two months, and it fell back after reaching its peak in February 2011. In September 8th last year, the plan for the temporary purchase and storage of cotton was launched in 2011, and the minimum storage price was 19800 yuan / ton. The domestic cotton price basically oscillate around the central axis of 19800 yuan / ton. This is in sharp contrast to the sharp fall in international cotton prices, but also led to a sharp increase in the price difference between domestic and foreign cotton, the current domestic cotton prices than foreign cotton prices are about 4000 yuan / ton. High cost cotton textile products have no advantage in the international market, and the annual quota of cotton imports is only a drop in the bucket.

The raw material director of the cotton textile enterprises said that due to the sharp rise in the price difference between inside and outside cotton, under the pressure of cost, "this year, our raw material inventory has been reduced a lot."

In September 3rd, in order to ease the contradiction between quota shortage and the import of low price cotton, and ensure that the spinning enterprises were using cotton in the long run, the national cotton store began to throw away the store almost at the same time. According to the current 18500 yuan / ton bid price auction, This month, the cotton needed for production can also be obtained from the auction of cotton reserves.

Zhang Xianbin, director of the economic and trade division of the national development and Reform Commission, said that the purpose of putting cotton reserves was to meet the needs of textile enterprises. In October, new cotton would be listed in large quantities, and the reserve was not necessary. After the approval of various departments, the deadline was September 29th, and the bid deadline for textile enterprises was September 20th.

"The number of cotton on the market will be reduced after the dumping is completed, and the cotton price in the market is expected to rise at that time." The person in charge said.

　 Whether the warehouse enterprises are waiting in the peak season?

In September 7th, the national cotton monitoring price index was 18692 yuan / ton. According to the 2012 cotton temporary storage and purchase plan issued jointly by the eight departments such as the national development and Reform Commission, it has satisfied the condition that the 5 working days are lower than the temporary storage and purchase price of 20400 yuan / ton. In September 10th, the Central Cotton store officially launched the 2012 cotton temporary purchase and storage work.

2012 cotton The provisional storage price is set at 20400 yuan per ton, an increase of 600 yuan over the previous year. As of September 17th, a total of 300 thousand tons of storage and purchase plans were issued, with a turnover of 5680 tons.

"Entering the August and September, cotton prices have actually risen a lot more than in June and July. At present, the price of cotton in the market is about 19000 yuan / ton, but the quantity has begun to decrease, and there are signs of sale in the market." The official said that the cotton purchase and storage was officially launched, and the price of 20400 yuan / ton was unlimited. The market price was significantly lower than the purchase price. A large number of new cotton will be selected after entering the market. "From this point of view, we should pay the price of domestic cotton, and we should pay more than the price of throwing the reserve price."

The official said, now is September, the autumn and winter season is coming, originally the traditional textile peak season. According to the current situation, cotton prices will continue to rise, and the cost of raw materials will increase. However, the demand for downstream industries is unknown. The cost of rising is difficult to conduct downward. Indeed, it is hard to see clearly.

　 The overall impact of Hangzhou enterprises is small.

The pressure from the opposite direction is the shortage of terminal demand. According to customs statistics, 1-8 months, China's clothing exports 99 billion 480 million US dollars, down 0.7% compared with the same period last year; textile exports 62 billion 510 million US dollars, down 0.7% compared with the same period last year; in terms of domestic sales, according to the data released by China Federation of textile industry, since 2012, the growth rate of domestic consumption of textiles and clothing has dropped. In 1-7 months, the actual growth rate of the clothing sales of clothing and footwear and clothing was 13%, down 5.7 percentage points from the same period last year. In 1-7 months, the domestic sales value of textile enterprises above designated size was 2 trillion and 577 billion 30 million yuan, an increase of 12.5% over the same period last year, a decrease of 20.3 percentage points compared with the same period last year.

However, compared to Shandong, Jiangsu and other cotton textile provinces, Zhejiang is less affected. Take Hangzhou as an example, Xiaoshan's textile is mainly made of chemical fiber. Wang Minhong, Secretary General of the Yuhang Home Textile Industry Association, said that the use of whole cotton yarn in Yuhang's home textiles was also less. The Association conducted a survey in June this year, and the impact of cotton price fluctuations on the home textile enterprises in Yuhang is generally small. {page_break}

"Since the financial crisis, home textile enterprises in Yuhang have strengthened cooperation with downstream industries such as sofa fabric enterprises and direct outlets in addition to strengthening research and development and expanding channels. The export situation of enterprises has declined slightly this year, but overall is relatively stable. Wang Minhong said.

　 Related news

The internal and external cotton prices are bad or concealed many contradictions.

Yesterday, the China Cotton Association 2012 national situation analysis conference was held in Beijing. Zhang Xianbin, director of the economic and trade division of the national development and Reform Commission, believes that the future direction of China's textile industry must first meet domestic demand, and we should make use of this opportunity to achieve real transformation and upgrading of the industry through structural adjustment.

Zhang Xianbin believes that the difference between domestic and foreign cotton prices has an impact on the textile industry, but it is not the most important factor contributing to its difficulties. Under the current conditions, there is no better policy to replace the purchasing and storage policy. The establishment of temporary purchase and storage price mainly focuses on the long term and is conducive to the development of the whole industry. The future direction of China's textile industry first needs to meet domestic demand, and the difference between inside and outside cotton prices conceals many contradictions in the industry, and textile production capacity is constantly expanding rapidly, once the market changes will be difficult to cope with. We should make use of this opportunity to achieve real transformation and upgrading of industries through structural adjustment. The temporary storage and purchase policy will be unshakable in the new year, and the quota issue will not be studied this year.

Wang Qingcui, Deputy Secretary General of China Cotton Textile Industry Association, said that according to the survey, in 2012, the output of cotton yarn in China decreased by 3%, and the total profit decreased by 60%. Due to the weak international demand and declining orders, cotton textile enterprises have encountered great difficulties, among which the impact of the former products is greater than that of the latter. Due to the rising labor costs and energy costs, China's cost advantage is gradually losing.

Jiang Fan, director of the foreign trade division of the Ministry of Commerce, believes that the export of textiles and clothing has reached a turning point in China. There are two main reasons for the decline in exports: first, the economic crisis has led to a decline in demand in the international market, with the European Union falling by 12% and the United States by 5%; two, the decline in competitiveness of enterprises, mainly due to the rise in labor costs and the difference in cotton prices between the inside and outside, leading to the decline in the number of main western countries' imports from China and the increase in imports from Southeast Asia.

Jiang Fan believes that although the situation is grim, there are still some positive messages. In September 12th, the State Council promulgated eight policies to promote the steady growth of foreign trade, including providing financial support for the transformation and upgrading of textile enterprises. Spin Industry favorable policies.