Domestic And Foreign Cotton Price Difference Widened Our Textile Enterprises Lose Competitive Advantage

"Business is getting harder and harder."

Zhao Lin, a leading person in Quanzhou, a href= "www.91se91.com/news/index_f.asp" > textile > /a >, has been in anxiety recently. The downstream demand is not strong, the price of cotton yarn is weak, while domestic cotton prices linger for more than a year at about 19 thousand yuan per ton.

< p > although the cotton price has dropped by nearly half compared with the "crazy cotton" with a ton of more than 30 thousand yuan in the previous two years, the problem is that with the expansion of the domestic and foreign cotton price difference, China's textile enterprises are losing their competitive edge.

"This year, the production line has been in an unsaturated state."

Zhao Lin had to consider giving the workers an early leave.

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< p > strong > a ton cotton price difference 5000 yuan < /strong > < /p >.

Less than P, not only Zhao Lin is worried, but the whole textile industry.

"Since the beginning of this year, domestic a href=" www.91se91.com/news/index_f.asp "> cotton spinning < /a > enterprise's utilization rate or utilization rate is generally less than 60%.

Of the enterprises that started, 60% were in a state of deficit and 30% were in a semi shutdown state.

What is this concept? This is equivalent to the total capacity of cotton spinning enterprises this year is only about half that of last year.

Chen Cangsong, deputy general manager of Fujian Hongyuan Textile, has been concerned about the change of figures.

"The textile industry is facing much more difficulties than in the 2008 financial crisis."

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< p > the reason for the current predicament is that in the eyes of Chen Chengqing, chairman of Feng Bamboo textile industry, the demand for downstream enterprises such as the garment industry caused by the changing economic environment at home and abroad is a factor. Since the second half of last year, the expansion of cotton price difference at home and abroad is also a factor.

"Cotton price at home and abroad is 20% worse than before. What is the competitiveness of domestic textile industry?" < /p >

< p > 1 ton < a href= "www.91se91.com/news/index_f.asp" > cotton > /a > how much difference? After experiencing a sharp decline in cotton prices in the first half of last year, Chen Cangsong found that the price of domestic standard cotton has been maintained at 19300 to 19600 yuan / ton since last September, while international cotton has been going down all the way to 14 thousand yuan / ton.

The latest cotton price in the United States is 14416 yuan per ton, Australian cotton 15148 yuan, Uzbekistan cotton 15280 yuan and India cotton 13810 yuan.

"The current cotton price difference has reached more than 5000 yuan per ton."

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< p > < strong > domestic cotton storage and storage market < /strong > < /p >

< p > what causes the huge difference between cotton prices at home and abroad? Chen Chengqing and Chen Cangsong mentioned cotton purchase and storage.

"Cotton purchase and storage is to protect the interests of cotton farmers, mobilize the enthusiasm of cotton growers, but indirectly exacerbated the cost pressures of textile enterprises, reducing the profits of textile enterprises."

Chen Cangsong believes that "the high proportion of the state's collection and storage has increased the price of cotton in the market circulation."

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"P >" from September 2011 to March this year, we started temporary storage and storage. At the price of 19800 yuan / ton, we collected 3 million 125 thousand tons of lint and accounted for half of the domestic output. The price of domestic standard cotton has been stabilized at about 19 thousand yuan per ton, which has drawn a distance from the international cotton price.

The purchase and storage of cotton in 2012 started in September 12th, and the purchase and storage price increased by 600 yuan per ton last year. The market price of domestic cotton rose by several hundred yuan at the price of 20400 yuan per ton.

Chen Cangsong looked at the change in cotton prices and could only feel anxious.

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< p > although the difference between domestic and foreign cotton is 4000 yuan to 6000 yuan, the price of imported cotton is low, but it is a "luxury". It looks beautiful, but it can not fall to its head.

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< p >.

Chen Cangsong's enterprises won nearly 1000 tons of "quasi tax" quota last year, although the tariff quota increased to 3% to 5% compared with the quota of imported cotton which only needs to levy 1% tariffs. However, compared with domestic cotton, the price advantage is still very obvious.

"Compared with some cotton enterprises that spend 5000 yuan to 6000 yuan to buy a ton of imported cotton quotas, it is very good to win the" sliding tax "quota, though 1000 tons can not meet the demand of cotton for 4 or 50 thousand tons a year.

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< p > < strong > migration should be prevented from acclimatization < /strong > < /p >.

Less than 6 months ago, Zhao Lin began to pay close attention to investment in Southeast Asia. Whether to move or not to move P has become a difficult choice.

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< p > "from the cost of manpower, the average number of workers in Southeast Asia is about 800 yuan per month, and the domestic market is about 3000 yuan. From raw materials, there is no quota of cotton imports in Southeast Asia, and a ton of cotton is less than 5000 yuan to 6000 yuan in China."

This is Zhao Lin's "cost account".

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< p > Chen Cangsong also counted the cost account.

"Cotton yarn imported from India, Turkey and Bangladesh is about 19 thousand yuan per ton, even lower than domestic cotton prices.

The domestic production of a ton of cotton yarn requires at least 1.15 tons of cotton, plus 7000 yuan of electricity and 1500 yuan of labor costs.

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< p > because there are no quota restrictions on cotton yarn imports, some cotton spinning enterprises have launched a new business. They choose to import cotton yarns directly from India and Pakistan, and then sell them to downstream textile enterprises or clothing enterprises.

"The production of cotton yarn is not as good as selling cotton yarn. The frustration of some enterprises has further deepened the survival plight of the whole industry."

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Where is the way out for p? Chen Chengqing can't see the direction now. He is also concerned about the trip of the industry association to Southeast Asia. But if he really wants to move, he told reporters: "easier said than done". < /p >

< p > "the stability of the industrial chain and the political and economic situation are all problems."

Although we have seen the successful opening of a cotton mill and a rapid growth case in Vietnam, Chen Cangsong did not plan to move out. After all, "going out is too risky."

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