Foreign Cotton Impacts Domestic Cotton Textile Enterprises Compete To Buy Imported Cotton

According to the data in recent months cotton The difference between the price of cotton and that of domestic cotton is generally about 3000 yuan - 5000 yuan per ton. In view of the low price of foreign cotton, domestic textile enterprises scramble to buy imported cotton, and domestic cotton has to repeatedly reduce the selling price.

Zheng Yujie, a researcher in agriculture, forestry, animal husbandry and fishery of CIC Consulting, analyzed that a large number of cheap foreign cotton flowed into the domestic market, which had a major impact on the domestic cotton price, which was the main reason for the decline of domestic cotton prices.

　　 Foreign cotton impacts domestic cotton

From April to June, the domestic cotton futures price has declined. Since then, in July and August, the domestic cotton futures price has been fluctuating in the low range. The upper and lower rails are 19700 yuan and 18500 yuan/ton respectively. On September 20, the price of Zheng Mian 1301 was 19780 yuan/ton.

The data shows that the overall situation of the cotton market in 2012/2013 continues the supply and demand situation of the past year: the global total consumption declines, the ending inventory increases, and the inventory consumption ratio increases. In other words, the cotton market is still in the de stocking stage.

Some American analysts attributed the decline in cotton prices to the decline in Chinese consumption. Mike Stevens, an independent cotton analyst, said that if the Chinese did not buy cotton, the price of cotton might decline more in the past year. He said: "I think the price may have dropped sharply. There is no doubt that they are the main supporters of the price." The current market is paying attention to China's future performance in the market.

But in fact, the price of cotton in China has always been at a higher level than that of foreign cotton imports. Moreover, due to the influence of cheap imported cotton from abroad, the price of domestic cotton cannot rise.

The difference between foreign cotton prices and domestic cotton prices is so large. Zheng Yujie, a researcher in agriculture, forestry, animal husbandry and fishery of CIC Consulting, believes that the reason is, on the one hand, that foreign cotton planting is highly mechanized and costs less; On the other hand, foreign governments have high subsidies for cotton, which greatly improves the price competitiveness of foreign cotton.

"To make up for this price difference, China needs to start with planting, improve planting technology, reduce production costs, and then increase government subsidies to cotton farmers," said Zheng Yujie.

In the interview, how many Home textiles The listed company of the enterprise mentioned to the reporter that the company uses imported cotton, and also mentioned that the cotton import quota was hyped, and the highest transaction reached nearly 4000 yuan/ton.

　 Cotton farmers change from cotton to grain

After a large number of low price imported cotton entered the domestic market, the domestic cotton price was difficult to maintain, which made it difficult for cotton farmers to sell cotton at a high price. As a result, many cotton farmers gave up planting cotton and switched to grain or other crops.

It is reported that in November 2010, the purchase price of cotton in Dezhou City, Shandong Province was about 7 yuan per kilogram. In April this year, the lowest price was about 3 yuan per kilogram, and the current purchase price is only about 3.6 yuan.

From this point of view, it is not surprising that cotton farmers have converted cotton fields into grain fields. In this regard, Zheng Yujie, a researcher in agriculture, forestry, animal husbandry and fishery of CIC consultant, analyzes: "Cotton farmers switching to other crops will lead to a decline in cotton supply and an increase in its price, which will make the textile industry in dire straits worse. On the one hand, the country can implement the policy of purchase and storage, which plays an obvious role in controlling cotton prices. It can reduce the circulation of cotton in the market and protect the interests of cotton farmers; on the other hand, it can adjust the import cotton quota and appropriately restrict foreign countries Cheap cotton enters. "

The new year's national purchase and storage policy was officially launched on September 10, with a temporary purchase and storage price of 20400 yuan/ton, and the purchase and storage will continue until the end of March 2013. According to the analysis of the insiders, although new cotton has been listed in succession, the processing enterprises are also cautious in view of the strict storage requirements in the new year. Before a large number of new cotton is listed, the turnover of cotton delivery and storage is expected to be relatively light.

　 8. The performance of cotton enterprises declined

"Cotton is closely related to the textile industry. At present, the textile industry is in a downturn, and there is less demand for cotton." Zheng Yujie analyzed.

Due to the ups and downs of cotton prices this year, most cotton enterprises are processing and selling on a cash basis to offset the cost of cotton storage, processing and transportation. According to insiders of a listed textile company, the company is currently buying cash according to orders. However, some textile enterprises are worried that equipment and labor will be wasted and will cause losses.

The fluctuation of cotton prices hurt cotton enterprises. In addition to the current decline in demand, nearly 80% of cotton enterprises saw their performance decline in the first half of this year. The data shows that 14 of the 18 listed companies in the cotton textile industry have decreased their performance. Among them, the net profit of Changshan Shares, ST Avenue B, Vico Essence and China Resources Jinhua decreased by more than 100%, with a decrease of 316.46%, 285.96%, 124.27% and 107.42% respectively.

Among them, the operating profit of Huafu Color Textile in the first half of this year was 4.49 million yuan, a year-on-year decrease of 98.44%. Song Chenling, the Secretary of the Board of Directors of the Company, has previously said that the growth of sales volume is due to the basic stability of the company's customer structure. Orders are all continuous orders, so there is no significant change throughout the year. The main factor affecting the company's performance is cost.

Affected by the falling international cotton prices, compared with the same period last year, domestic cotton fell by 1000-1500 yuan/ton, but still 4000-4500 yuan/ton more expensive than imported cotton.

At present, there are cotton spinning The enterprise can be said to be selling cotton yarn at a loss, but in order to maintain its business, it cannot stop work, or it will be the result of bankruptcy. According to Ma Junkai, deputy secretary-general of Dezhou Cotton Association, from March to now, 80% of enterprises in the whole Dezhou area have stopped production or limited production, and perhaps 20% of enterprises have closed down.