Volatile Cotton Prices Are Increasing Pressure On The Cotton Industry Chain.

As raw materials, the turbulence of cotton prices not only directly affects the income of cotton farmers, but also affects the development of the entire industrial chain.

From China

According to the latest data of the Federation of industry in September, the profit of 105 key cotton textile enterprises in China decreased by 52.1% in the 1-7 months of this year. The loss of enterprises was 18.4% and the deficit of loss making enterprises increased by 124.1% over the same period last year.

As a major textile Province, Jiangsu's cotton industry chain is also under great pressure.

Profit from source enterprises

Coarse cloth, old ball.

The old electric tricycle, in October 11th, met cotton broker Ni Chunhong in the cotton field of Dafeng.

In the eyes of ordinary people, the high cotton price is a good thing for cotton brokers. But in an interview with reporters, Ni Chunhong said that the emotional situation was full of tears.

"20 years ago, the wages of workers were only tens of yuan, and the price of cotton was 4.6 yuan / kg. After 20 years, the wages of workers were three thousand or four thousand yuan, and cotton prices were only 8 yuan / kg.

Ni Chunhong took out the newly opened receipt, which sells cotton at the price of 8.32 yuan per kilogram during the season.

"One kilogram earns only 0.12 yuan. The 4 person acquiring company has a 500 thousand kilogram of busy season, that is, 15 thousand yuan per person.

This money is not enough to support two children, so my husband has to go fishing at 4 o'clock every morning. "

Like Ni Chunhong, busier in the upstream of the cotton industry chain is Wu Hongsheng, a private small business owner.

Wu Hongsheng runs a cotton ginning plant, Dafeng City constant quality cotton industry Co., Ltd.

Embossing, that is to say, the seed cotton will be processed into finished cotton and sold later.

Wu Hongsheng said that last year, the output value of the enterprise was 50 million yuan, but the small profits made him and the 60 employees in the factory difficult.

"100 kilograms of seed cotton can only be rolled out about 36 kilograms of finished cotton, count the daily expenses and wages of workers, not to mention the output value is 50 million, but the ginning mill profit is only about 6%.

Because price fluctuations exceed expectations, the more we get, the more we lose. "

Disaster for textile machinery enterprises

A large factory gate, kindergartens, bathrooms, workers' homes, dormitories and so on are hung up with the plaque with factory names. The huge factory buildings seem to remind people of the past glory of enterprises.

In the new cotton spinning factory of Dafeng City in Fengzhen, it has long been deserted.

Not far away, Dafeng City Supply and marketing Machinery Factory Limited (the "Feng Ji factory") also has slogans on the propaganda wall of "the top 50 in Yancheng".

In September 6th this year, Feng Machine Factory officially entered bankruptcy reorganization, and a few years ago, the factory specializes in cotton gin, stripper and leather cleaning machine. It once had 700 workers, and its annual output value exceeded 80 million yuan.

"In addition to the problems of the enterprises themselves, the impact of the cotton market in recent years is also the main reason for our bankruptcy."

Zhang Baishen, deputy general manager of Fung Machinery Plant, said that in the past, cotton ginning companies were storing cotton for about 8 months for a one year production, so their cotton gin was selling well. Now, with the increasing risk of hoarding cotton, enterprises generally only dare to store two months' inventory, and the sales of related machines have been reduced by more than 60%.

One family does

The head of processing enterprises also said that in recent years, the price of cotton yarn in India and Pakistan has a strong impact on domestic enterprises.

Now, there are nearly 5000 tons of spindles in their storeroom. According to the loss of 1500 yuan per ton, the annual loss will reach 7 million 500 thousand yuan.

"In the past, it is cheaper than others, we are busy exporting, now domestic prices exceed foreign countries, business is becoming more and more difficult."

Small quota difficult to solve the urgent needs of textile enterprises

At present, the price of finished cotton in China is around 20 thousand and 400 yuan / ton, while the price of imported cotton is only about 15 thousand yuan / ton. The import price of cotton has been upside down, so many textile enterprises have put cotton prices on imported cotton.

According to the relevant agreement of China's accession to WTO, the quota of domestic cotton imports is 894 thousand tons per year, and the enterprises that get the import quota only need to pay 1% of the tariff, while the enterprises that do not get the quota need to pay the sliding tariff of 5%-40%.

"Theoretically, the price difference will be more than 1000 yuan / ton, and the enterprises will be more willing to choose imported cotton, but the quota is only 894 thousand tons.

Zhao Yong, general manager of Jiangsu Zhen Lu Textile Co., Ltd. admitted that the application of enterprises also had the quota quota restrictions, plus the high sliding tariff, which made many small and medium-sized enterprises exclaim.

In addition, the price of the national throw cotton store is 18 thousand and 500 yuan / ton this year, but the application also has certain threshold restrictions. First, a deposit must be paid, and a full payment will be paid within 5 working days. This kind of financial pressure is unbearable for the general small and medium-sized enterprises, and the final application is basically a large enterprise.

It is difficult to make a judgement on the domestic cotton price because it can not get the quotas of imported cotton. At the same time, many enterprises begin to reduce the quantity of cotton, but they will lose one day without starting.

From the initial hoarding of cotton to the present piecemeal purchase, the nervous nerves of enterprises seem to be unable to touch a touch.

Industry sources said that at present, Dafeng

A group has been knocked out and the cotton price has been stabilized at a reasonable level, which has become the common expectation of all of us.