Cotton Spinning Enterprises Will Be Trapped In The Same Dilemma.

The current sale of national cotton reserves is about to stop.

Pair cotton Spin Enterprises, in the State Cotton store to stop the release, import cotton is restricted, from the new cotton listing has more than two months or so, and the new flower may continue to enter the State Treasury situation, cotton spinning enterprises or will be trapped in the dilemma.

The three quarter has always been the time when cotton spinning enterprises are not using cotton, but this year they are faced with a special situation which has not been seen in previous years. It is a great test for cotton spinning enterprises and the whole cotton market. In the three quarter, the change of cotton policy will be the focus of the market. Under such circumstances, listening to the opinions and suggestions of enterprises on the policy of releasing reserves can be used for reference by the state in formulating cotton policies.

Have enemies in front and rear

In 2011, in order to stabilize the cotton market price and protect the interests of cotton farmers, the state implemented a temporary cotton purchase and storage policy. Although the introduction of this policy has stabilized cotton prices, it has also contributed to the upside down of cotton prices at home and abroad. Now, the cotton stored by national cotton reserves has far exceeded cotton consumption throughout China.

According to the latest data released by the US Department of agriculture, it is estimated that China's cotton inventory will be 10 million 890 thousand tons in 2012/2013, accounting for about 60% of the end of the world inventory.

The high inventory is worrying.

But it is puzzling why the national cotton reserves stop dumping at this time. Related textile enterprises responsible person said, "the state suspends the sale of cotton reserves for a number of reasons, mainly for fear that some people will speculate, buy cheap cotton and sell cotton at the low price, and sell high prices to buy and store cotton."

But for whatever reason, the news is no more than an increase in the textile industry, which has always been the main raw material supply for national cotton reserves.

According to the cotton provisional policy, the domestic cotton purchase price is 20400 yuan / ton, the selling price is 19000 yuan / ton, although the state adopted the strategy of high and low throw, but the price difference remained unchanged at 4500 yuan / ton compared with the international cotton.

The high price difference has caused the domestic textile enterprises to invest in raw material sources. Against this background, domestic cotton products are losing their advantages compared with foreign ones.

Today, the State Cotton stores stop selling, which puts textile companies in a more difficult position. Moreover, with the quota system adopted by the state for imported cotton, the quota for each enterprise to purchase imported cotton is limited. Therefore, imported cotton alone can not support the production of the enterprises.

"The state does not sell cotton, and we have no other better channel to buy cotton, and the production of enterprises will be greatly affected." The head of a textile enterprise in Shandong reluctantly told reporters that for the textile enterprises currently struggling to survive in the cracks, they were attacked by both sides.

"If we do not sell cotton, we do not have cotton, then how can enterprises do it?" in the case of domestic and foreign cotton prices hanging upside down and fierce competition in the market, textile enterprises have expressed difficulties again and expressed concern about the future of their enterprises.

More harm than good

The company responsible for the interview said that the sale of State Cotton stores would be more harm than good to enterprises.

"When the State implements this policy, most of our cotton sources are gone. Nowadays, the biggest channel for enterprises to get cotton is suddenly gone, and we do not know how the enterprises should effectively transform and develop next. "The head of a Shangqiu textile enterprise in Henan said that the implementation of this policy has caused a great shock to the whole industrial chain of textile enterprises.

The most obvious manifestation is the price of cotton textiles.

Although the state has imposed 3:1 quotas on imported cotton, the quality of many domestic cotton is uneven, and the price is much higher than that of imported cotton with high quality. Therefore, many domestic textile enterprises can only attract more orders by reducing prices, small profits and quick turnover. But now that national cotton stores stop selling, they will surely cause fluctuations in cotton prices on the market.

In the process of transformation from planned economy to market economy, more textile enterprises may try to stand out in this competition through price war, which will surely fall into vicious competition. The price shock triggered by this policy will take some time to stabilize. " Henan Shangqiu textile enterprise responsible person.

Next is the impact of the small scale processing industry on the bottom of the industrial chain.

Henan Shangqiu textile enterprise official said, at present, there are many small processing and manufacturing industries in our country, these small businesses produce almost no value-added products, such as cotton, quilt and other cotton textile enterprises. The blow up of national cotton stores is almost fatal to these small businesses, but these processing enterprises often play an important role in absorbing surplus labor. In the face of such a policy, such enterprises can only shut down except for industrial upgrading.

For the State Cotton store to stop selling, the head of the above-mentioned Shandong company also expressed frustration. He told reporters that the release of any policy will bring tremor to the relevant enterprises.

"There are many problems in the textile industry itself. Stopping the sale of cotton reserves is now the most difficult and difficult problem for the industry." The person in charge said.

Coping with fatigue

National cotton is about to stop, and textile enterprises must take the necessary measures to deal with it. But when the reporter mentioned what feasible countermeasures to deal with this policy, many cotton spinning enterprises were responsible for their reluctantly expressed "no way". Some of the cotton spinning bosses even expressed their indignation and thought that the implementation of such a policy is forcing the enterprises to go bankrupt.

It is reported that in the textile province of Henan, many textile enterprises have jointly written to request the state to postpone the implementation of this policy. At the same time, the textile enterprises in the southwest Chongqing and Chongqing region also called for the postponing of the national cotton storage policy to be postponed. But up to now, the relevant departments have not replied.

"We can only work hard in terms of product quality and efficiency." The above Henan Shangqiu textile enterprise responsible person said, no cotton, can only reduce orders, less production products, focus on ensuring product quality.

When the reporter asked how to find new sources of raw materials and expand new sources of cotton, the responsible person also showed great confusion. "At the moment, I don't know where to buy cotton."

According to the current situation, the upgrading and transformation of the textile industry is imperative. However, the suspension of national cotton storage will undoubtedly bring a great shock to the textile enterprises, and the textile enterprises will have to accept a new challenge.