The Difference Between Domestic And Foreign Cotton Prices Is Narrowing, And The Polarization Of Chinese Textile Enterprises Is More Obvious.

< p > the gap between domestic and foreign cotton prices has been shrinking this year. As of June 14th, the domestic cotton -CC price was 19318 yuan / ton, and the difference between the cotton price and the foreign cotton price has dropped below 4000 yuan / ton. The leading enterprises in the industry of < a target= "_blank" href= "http://www.91se91.com/" > strong > textile > /strong > /a > have obviously shown signs of recovery, and have predicted that the profit will increase substantially in the first half of this year, but this does not reflect the current situation of the whole industry.

Wang Qianjin, a textile expert, said that comparing the difference between cotton prices at home and abroad last year exceeded 6800 yuan / ton, the difference may stabilize at 3000 yuan / ton this year, and the polarization in the industry will be more obvious.

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< p > a colored spinning monopoly enterprise, with the high price < a target= "_blank" href= "http://www.91se91.com/" > strong > cotton < /strong > /a > inventory gradually digested, the net profit in the first quarter of this year was 98 million 636 thousand and 300 yuan, an increase of 42.55% over the same period.

At present, the company is promoting gross margin through various ways.

One of them is the rapid development of the Vietnamese project.

The Vietnam project mainly produces and sells yarn and its by-products, and its total investment is 98 million US dollars.

Baron East Dong Mihua Jingdong told reporters that the Vietnamese project is expected to be put into operation by the end of this year and early next year. The company's annual orders should be stronger than last year, and its growth rate is expected to exceed 10%.

An official told reporters that the Vietnamese project capacity of the company is expected to be between 10 thousand and 15 thousand tons. The core significance of building a factory in Vietnam is not to increase production capacity, but to receive less quotas and get more cheap imported cotton.

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< p > a company owned by cotton A from the cotton industry to the spinning and weaving industry and the complete industrial chain of garments is mainly made of long staple cotton. In order to reduce the impact of the supply and price fluctuation of long staple cotton, the company's measures are, for example, to invest in cotton planting base in Xinjiang, accounting for about 30% of the total output of cotton.

At the same time, the enterprise can get the quota of cotton import, and the proportion of outer cotton can reach 30%~50%.

Therefore, its comprehensive cotton consumption is at a low level in China.

In addition, the company has established long-term and stable supply relationships by signing long-term orders and framework agreements with key suppliers, and actively acquiring cotton import quotas in China, so as to get the initiative to flexibly allocate domestic and foreign purchase percentage of long staple cotton.

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< p > several other leading enterprises also showed obvious signs of recovery.

Tianhong textile [-0.49%] (02678.HK), one of the largest suppliers of core cotton textiles in China, issued a profit forecast. The profit in the first 5 months of this year exceeded the profit in the first 6 months of last year, more than doubled, so it is expected that the profit will increase substantially in the first 6 months of this year.

The company said that because the price of the international cotton market is still far below the price of China's cotton, the group continued to implement the cotton procurement policy announced earlier.

At the end of May, the purchase orders already finalized for cotton inventories and prices were sufficient for use in the next 5 months.

The group has about 1 million fully operational spindles and 300 thousand spindles at trial production stage.

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< p > China's largest cotton textile manufacturer also announced recently that the net profit in the first 6 months of this year is likely to increase substantially compared with the same period in 2012, mainly due to the slow recovery of the overall demand in the textile market and the increase in the sales of the gray fabric, and the stable value of the book value of the product compared with the end of 2012.

Data show that 1~5 months, the national a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "_blank" > < > > shoes > < > > hat, needle textile retail sales amounted to 451 billion 500 million yuan, an increase of 11.1% over the same period.

Textile and apparel exports totaled 103 billion 119 million US dollars, an increase of 13.79% over the same period last year, and the growth rate slowed down 2.74 percentage points compared with 16.53% in 1~4 months.

Wang said to reporters that the industry's overall recovery rate is slower than that of the data, and is still in a weak position. It can only be said that it is better than the lowest in the two or three quarter of last year.

Hua Jingdong told reporters that at present, the situation of small businesses is not very good, the order is difficult and the loss is serious.

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< p > from the difference between inside and outside cotton, Wang predicts that it will not be easy to maintain the level of 3000 yuan / ton this year. If it wants to shrink again, unless cotton continues to rise and cotton will be lowered again.

"But neither of these two situations is possible."

Wang Qianjin said that because of the overall overcapacity, it is unlikely that the industry structure will be adjusted in one or two years.

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