The "Stop And Shut Down" Caused By The Supply Of Raw Materials By Chinese Textile Enterprises

In order to survive in the crevice, some enterprises have to introduce high priced cotton textile materials from the international market to maintain the operation of enterprises with a meager profit. However, the current 1:3 raw material import quota management has pushed enterprises into a dilemma. In addition, in an increasingly open global market environment, the cotton collection, release and storage policy of unified marketing has exposed many new problems. These complicated problems not only perplex cotton tube departments and enterprises, but also become China spin The Federation of Industry (hereinafter referred to as the China Textile Federation) is currently worried.

Wang Tiankai, president of China Textile Industry Federation, expressed his concern about the supply of China's textile raw materials on different occasions. China Textile Federation believes that if the problem of raw material supply is not solved one day, China's cotton textile enterprises will suffer for another day. To this end, the China Textile Federation recently held a grand international conference on the textile raw material market in Nanjing for the first time. It is said that this is the first time in the history of the organization to hold an international conference on the topic of textile raw material supply, in order to find a good solution to the problem of continuous deterioration of textile raw material supply.

Guangdong Qingyuan Detai Textile Industry Co., Ltd. (hereinafter referred to as Detai Textile) is a large-scale enterprise with Adidas and Nike as its main customers. This once famous enterprise in the fabric market is now in a passive position like many textile enterprises. Chen Jiaolan, the general manager of the company, as the high-level representative of the company, told the reporter of China Trade News the night before the meeting that if the domestic problems such as high cotton prices, low quality and high quotas are not handled properly, the crisis of "shutting down and dying" of the enterprise will emerge.

It is reported that at present, Detai Textile consumes about 1000 tons of cotton annually, and more than 70% of the production cost of the enterprise is spent on raw materials. Although the startup rate is 100%, the enterprise has been operating at a loss. In order to maintain normal operation, the interest of the enterprise's borrowing from the bank is more than 5 million yuan every year.

Chen Jiaolan believes that the current cotton supply problem is the main reason for the high operating pressure of cotton textile enterprises. Due to lax control in circulation and grading, the quality of domestic cotton supply is reduced. At the same time, the management of high quota indicators has helped keep cotton prices high. Worried about the quality of domestic cotton, Detai Textile finally chose to give up the 3600 ton bidding target of cotton tube department and purchase high priced cotton after struggling for a long time.

For the current 1:3 quota management, Sun Huaibin, Deputy Secretary General of the China Textile Federation and press spokesman, called it "buying one jin of lean meat and three jin of fat". This policy has reduced the grade and level of Chinese products to a certain extent, and reduced the international competitiveness of Chinese textiles and the international market share.

It is worth noting that, according to relevant data, as of the first ten days of June this year, the national reserve of cotton was less than 2 million tons, while the current total national reserve of cotton was as high as 10 million tons. This group of figures just fit in with the previous judgment of China Textile Federation. Gao Yong, vice president of China Textile Federation, said at the Nanjing meeting that this was the impact of the high cotton price of 19000 yuan/ton. At the same time, he also predicted that by the end of July this year, the total amount of cotton released and stored would hardly exceed 4 million tons. Unfavorable storage and the listing of new cotton in September will lead to a backlog of 13 million tons of cotton, and the impasse is still difficult to break.

Textile enterprises have increased operational risks, increased recessive unemployment, and enterprise shutdowns occur from time to time. These problems urgently need to be solved through cotton tube system reform. Zhan Lingzhi, chairman of Anhui Huamao Textile Co., Ltd. (hereinafter referred to as Huamao Textile), revealed to reporters that the rising cost of the textile industry and other factors forced enterprises to carry out transnational transfer. At present, Huamao Textile is studying the feasibility of transferring business to Australia and India. When talking about the profit of the cotton textile enterprise, Zhan Lingzhi expressed diffidently that the profit of the enterprise had been so low that it could be ignored, and he was afraid that outsiders would laugh at it.

In Zhan Lingzhi's words, the current Chinese textile enterprises are tied to participate in market competition. It is strange that they will not fail. Zhan Lingzhi's opinion seems to coincide with another set of data from China Textile Union. Data shows that since 2009, China's textile exports have been in negative growth.

Gao Yong, Vice President of China Textile Federation, said in Nanjing that in recent years, the market share of Chinese textiles in the EU, the United States, Japan and other countries and regions has declined from 65% to about 40%. This shows that, restricted by key factors such as textile raw materials, the international competitiveness of Chinese textile enterprises is no longer as good as before.