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    High Price Of Raw Materials, Domestic Textile Enterprises Call For Adjustment Of Cotton Purchase And Storage Policy

    2013/8/1 9:00:00 36

    CottonCotton Raw MaterialsCotton Spinning Industry

    < p > September is the time for new cotton to go public.

    In the past two years, he has collected the < a href= "http://www.91se91.com/news/index_c.asp" > cotton > /a > from cotton growers, and directly entered the national storage and storage after processing into lint.

    At present, the price of domestic cotton spot market fluctuates between 19200 yuan / ton to 19400 yuan / ton, while the country's 20400 yuan / ton storage price is about 1000 yuan / ton higher than that of the domestic market.

    However, Mr. Cao has recently heard the news that such a peaceful and comfortable life will change next year.

    < /p >


    Sun Ruizhe, vice chairman of the China Textile Industry Federation, said in an interview with "First Financial Daily" yesterday that the adjustment of cotton purchase and storage policy is indeed in progress. Xinjiang will be selected as the pilot project for producing cotton and heavy land in P.

    However, he did not disclose more information.

    < /p >


    < p > textile industry senior expert Wang Qianjin told an interview with our reporter that although the cotton open storage and storage policy has stabilized the domestic cotton price to some extent, it has also exposed some disadvantages. At present, the state temporary storage and storage cotton has accumulated nearly 10 million tons, and the stock and financial pressure of the reserve cotton are huge. Moreover, the domestic cotton price is still 3000~4000 yuan / ton higher than that of foreign countries due to the purchase and storage price support, which is not conducive to the development of the downstream textile and garment enterprises.

    It is estimated that cotton open storage and storage policy will be adjusted next year, and the industry proposes to implement direct subsidy mode for cotton farmers.

    < /p >


    < p > < strong > inside and outside cotton price difference is high, spinning enterprises complain bitter "/strong > < /p >


    Less than P > since the cotton temporary purchase and storage policy was launched in 2011, domestic cotton has finally bid farewell to the price of "roller coaster" and tends to be stable.

    However, the upstream profit is guaranteed, and the downstream cotton spinning enterprises have been hit.

    < /p >


    < p > over the past two years, because of weak market demand, the international cotton price has plunged sharply. Last year, domestic cotton price was even higher than the international cotton price by 5000~6000 yuan / ton.

    Although the difference between domestic and foreign cotton prices has narrowed to 3000~4000 yuan / ton, but for domestic textile and garment enterprises, compared with foreign counterparts, they lost their competitiveness in raw materials at the very beginning, and their competitiveness was difficult to improve. With the increase of RMB appreciation, labor cost rise and market weakness, the demand for adjusting cotton purchasing and storage policy was getting higher and higher.

    < /p >


    < p > Lin Yan, manager of cotton textile department of Hangzhou light industry craft textiles import and Export Co., Ltd., told reporters that the production lines of some factories of the company will be idle in 8 and September. In the past years, 7~9 months just happened to be the peak period of processing and production. On the one hand, the international market is not very good this year. On the other hand, customers are pferring some of their orders to Vietnam and other Southeast Asian countries.

    < /p >


    "P >" our customers basically purchase in Southeast Asia. Although the delivery date and quality of Southeast Asia are not as good as ours, its < a href= "http://www.91se91.com/news/index_f.asp" > cotton raw material < /a > cheaper than ours and labor cost is cheaper. Therefore, the orders of customers to our side have decreased.

    This year, the export volume of our department has declined by 4.7%, and profits have also declined. "

    Lin Yan said.

    < /p >


    Zhu Sujun, director of the Department of international trade of Shanshan Group, P, also said that the export of Chinese fir in recent years is relatively light. This year, the pressure is greater, the price is depressed, and the order quantity is less and less. Before a single color order is generally set up 1000 pieces, at least 500 pieces, and now only 200~300 parts, the cost pressure is increased.

    < /p >


    < p > {page_break} < /p >


    < p > a number of textile and garment enterprises have shown that the current orders are declining. In addition to international demand, the domestic price of cotton is also related to policy protection, which keeps the cost high, while customers fall back because of the international cotton price.

    "The cost of using cotton is obviously higher than that of Southeast Asian enterprises, which basically encroach on all our profits.

    Once the price of cotton is determined by the market, cotton prices will fall sharply, which will help lighten our burden. "

    Lin Yan said.

    < /p >


    < p > < strong > collection and storage policy needs to be improved < /strong > < /p >


    < p > at present, apart from the Khmer price difference affecting the competitiveness of domestic cotton products, there are still many problems perplexing Chinese textile enterprises.

    < /p >


    < p > although the State implements the policy of purchasing and storing up to protect the interests of cotton farmers, it has not changed the trend of overall decline of cotton planting area in China.

    This year, cotton planting area has dropped to below 467 thousand sq km for the first time. The data of China Cotton Association is 456 thousand sq km, which is 6.7% lower than that of last year.

    Wang progressive analysis pointed out that the good results of the purchase and storage policy were taken away by cotton merchants to a certain extent, and cotton growers made a limited profit, and the cost of cotton planting increased sharply, which also affected the enthusiasm of cotton growers.

    Therefore, the industry proposes to consider the mode of direct subsidy to cotton farmers.

    < /p >


    < p > there is also a comparison with the trend of cotton inventory in recent years. Due to the support of unlimited purchasing and storage policy this year, the stock market has shifted to the reserve, resulting in a low turnover in the overall market.

    This is not an increase in the real demand of the market, which is likely to distort cotton prices and affect the pricing of market supply and demand.

    In addition, although foreign cotton prices are lower than domestic cotton prices, in the 1~6 month of this year, China imported 2 million 411 thousand and 600 tons of cotton, a decrease of 21% compared with the same period last year. This shows that the global textile and apparel consumption is weak, and domestic textile and apparel stocks are high and raw materials are not active, and the situation is not optimistic.

    < /p >


    < p > "from these aspects, there are many drawbacks in the current policy of purchasing and storage, which is not conducive to the development of the whole < a href=" http://www.91se91.com/news/index_cj.asp "> cotton textile industry < /a >, and needs to be improved.

    However, if the policy of temporary purchase and storage is substantially adjusted in the current international market downturn, the price of cotton will probably fluctuate. The risk and pressure of the whole textile industry chain may be even greater. Therefore, the implementation of the 2013 cotton temporary storage plan (September 1, 2013 to March 31, 2014) should not be further adjusted. It should be adjusted for the 2014 cotton purchase and storage policy. However, the policy of purchasing and storage is not necessarily cancelled, or it will be used in parallel with the form of direct subsidy to cotton farmers.

    Wang Qian judgement.

    < /p >

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