Cotton Prices Are Too High, And Many Textile Companies Are Losing Money Frequently.

　　 Xinjiang It is the largest hand picked cotton in the world and the only production base of long staple cotton in China. Cotton production accounts for half of the country's total output. With the adjustment of the layout of the national textile industry, a large number of mainland cotton textile groups have moved westward and set up factories in Xinjiang.

Unexpectedly, just a few years later, the enterprises that originally hoped to seize the resource highland through the new round of "east to West shift" gradually lost their strength with raw materials and manpower and fell into a more severe "winter" than their counterparts in the mainland.

Guarding " cotton Why is the "westward" cotton spinning enterprise facing more serious life and death tests than mainland enterprises?

Cotton price approaches yarn price

" Cotton price It's too high to spin any yarn! "Sighed tengyachu, director of Akesu Hongli Textile Co., Ltd. In the first 11 months of 2012, the sales volume of the Zhejiang textile enterprise was only about 40000000 yuan, while the loss reached about 8000000 yuan.

According to the current domestic cotton price, the production cost of 32 yarn per ton has reached more than 32 thousand yuan, while it can only be sold to the coastal area for 27 thousand yuan, and the price of the 21 yarn is less than 20 thousand yuan, which is lower than the domestic cotton price. This means that every time a ton of yarn is produced, the enterprise will lose 5000 yuan. In the southern part of Akesu, some textile enterprises had to stop production, while most enterprises chose to limit production.

"We can't stop production at a loss, or the workers will run away! Customers will be lost!" Tengyun Lang said. In order to maintain the market, the company shut down half of the production line, and the remaining staff organization training. Tengyachan said frankly, the reason why the enterprise can still be maintained, there is no production stop, and the profits from the two ginning plants of subordinates have been partially absorbed by the profits, but no one knows if they can sustain it next year.

For enterprises, what is more fatal is that because China has no restrictions on the import of cotton yarn, the price of cotton yarn from India, Pakistan and other countries is even lower than that of cotton in China. Downstream weaving enterprises are more willing to choose imported cotton yarns at low price, which makes domestic textile enterprises, especially a new round of "east to West shift" enterprises miserable.

Since the beginning of 2006, with the adjustment of the layout of the national textile industry, a large number of large cotton textile groups have gone west and cast their sights on Xinjiang, the largest cotton producing area in China. YOUNGOR, Huafu, Li Tian and other famous textile enterprises have been "going west" and do not set up the layout in a confidential way.

Unlike the "east to West shift" in the 90s of last century, the "westward shift" is a spontaneous action of textile enterprises. It has already made the scale of Xinjiang's cotton spinning industry reach 5 million spindles, and has formed the "two city seven garden" strategic Bureau based on the two textile cities of Akesu and Shihezi, undertaking the transfer of domestic textile industry.

"All enterprises are losing money," said Liu Wei, deputy director of the Akesu Textile Industrial City Management Committee. "The enterprises that only spin are much more profitable and the industry chain is losing less."

The advantages of "westward advance" are gradually lost.

Before "westward advance", many enterprises believed that investing in Xinjiang could directly acquire high-quality cotton resources and save a lot of intermediate links. In this way, we can find the market pressure to eliminate the rising price of raw cotton, and also solve the increasingly serious employment problem in the mainland. However, this is not the case.

"The advantage of Xinjiang's origin has not been left!" a Shihezi textile enterprise official told reporters.

Reporters learned that in recent two years, as the cost of agricultural materials and cotton picking costs continue to rise, Xinjiang cotton production costs have risen all the way; and cotton varieties everywhere "more and more confused" phenomenon is becoming more and more serious, making Xinjiang cotton quality began to decline year by year. At the same time, the area of cotton picking has increased year by year. Although it has saved the cost for farmers, it has also reduced the grade of cotton. At the same time, because of more impurities, it has increased the cost to textile enterprises.

The "labor advantage" originally considered by Xinjiang enterprises is also losing year by year. Whether in North Xinjiang's old textile industrial base in Shihezi or in southern Xinjiang, Akesu's "employment" problem is a common problem faced by Xinjiang textile enterprises. {page_break}

"In two years, the average wage has doubled. Now the average wage of the workers in the factory has reached over 2200 yuan, which is even higher than that of our factories in the mainland. Song Rui, general manager of Akesu Xinfa Cotton Industry Co., Ltd., Xinjiang, said. This enterprise belongs to Henan Xinye textile Limited by Share Ltd, and entered Xinjiang Akesu area in 2010.

What makes the enterprise more difficult is that even such a high salary is difficult to recruit workers. Reporter survey found that, because the local city people do not want to be a textile worker, the surrounding farmers earn a lot of land and do not want to do so. Most of the textile enterprises in Shihezi are recruited from the mainland. According to the investigation and statistics of the Shihezi economic and Technological Development Zone, the average wage of local textile workers has surpassed that of the coastal areas.

In southern Xinjiang, this problem is even more prominent. "Basically run away once a year and take the same place as a horse lantern. The enterprise is always in the state of training employees." "There is no advantage in manpower cost here compared with other textile factories affiliated to the headquarters of the mainland," a company leader said with a bitter smile.

　　 High quality cotton produces "big road goods"

Harder than mainland counterparts, the price difference between imported cotton and domestic cotton at present is about 5000 yuan per ton, which is limited by the management quota of cotton quotas issued by the state. The quota of imported cotton that Xinjiang cotton spinning enterprises can apply to can be ignored. This can not reduce the cost by using cheap imported cotton "high and low collocation".

At the same time, compared with the construction of factories in the mainland, the long distance transportation time cost also greatly offset the advantage of investing in Xinjiang, so far away from the sales market, enterprises can not cope with the rapidly changing business opportunities in time. Because the quantity of materials exported from Xinjiang is much larger than that of Xinjiang, especially in October, with the concentration of cotton, tomato paste, sugar and other agricultural products (6.20,0.03,0.49%), transportation conflicts will further intensify, and cotton yarn outward bound will inevitably be restricted. Yin Zongze, head of the Jiangsu textile industry, said that in order to fight for time, in 2012, enterprises could only give up the cotton and yarn export allowance provided by the state and Xinjiang, and transport a batch of yarn to Nantong, Jiangsu, at a cost of 900 yuan per ton freight. "It's expensive to keep customers," he said.

The westward movement has slowed down in fact. A person in charge of Shihezi national economic and Technological Development Zone told reporters that from 2011 to the present, the development zone has not received a textile enterprise to negotiate and invest in the two years since the development zone. In the southern Akesu textile industrial city, the total capacity of the construction and commissioning of the textile industry is less than 1 million ingots, which is far from the goal of 6 million ingots in the planning. Many companies that plan to expand their business in Xinjiang face difficulties, or they can't stop or invest.

Wang Li, the head of the cotton economics research center of Shihezi University and the vice president of the Institute of economics and trade, said that the new round of "east to West shift" is seriously affected by the unprecedented adjustment of the layout of the textile industry. If a large number of "westward" enterprises can tide over this difficulty, the cotton and textile industries in Xinjiang will be devastating.

Reporter survey found that although most of the investment enterprises in Xinjiang are the most advanced equipment in the country, they can produce high value-added products, but most of the production is still "high quality goods" with low added value. In the central and eastern part of China, cotton textile enterprises are concentrated, and the cotton spinning industry chain has formed a dragon. But Xinjiang is a pure textile factory, producing single yarn products, and these products still need to be transported to the mainland for long distance sale. Once the downstream customer market is sluggish, the sales of "westward" textile enterprises are immediately blocked.

"It's really heartache to spin out cheap high-quality goods with high quality cotton in Xinjiang," said Hu Jianhua, chief engineer of Li Tian Group, a famous textile enterprise in Zhejiang. On the other hand, "if the downstream garment companies are always satisfied with the shirts and jeans that are produced and exported for more than ten yuan each, then the upstream can not sell them even if they produce more high count yarns." Hu Jianhua, who is also the deputy director of the Zhejiang Textile Industry Association and the cotton spinning Specialized Committee, thinks that to save the "East inward shift", the state only gives the preferential policy of "westward advance" is far from enough. We should consider the promotion of the whole textile industry upgrading and formulate relevant policies and measures for the whole industrial chain.