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    Policy Adjustment Makes Cotton Price Tend To Be Market-Oriented. Why Do Enterprises Not Appreciate It?

    2014/3/5 10:37:00 70

    Policy AdjustmentCottonTextile

    < p > this year, the new cotton year is going to pilot cotton direct subsidy policy in Xinjiang. The industry believes that this is a favorable signal for China's cotton price to integrate with the international market.

    However, from the spring survey of China a target= "_blank" href= "http://www.91se91.com/" > textile > /a > cotton group, the majority of cotton textile enterprises are still not confident enough because of the uncertainty and uncertainty of the current policy, and the market trend of this year is still not optimistic. Some enterprises are beginning to plan or continue to intensify overseas development.

    < /p >


    < p > changing the planned cotton system and adjusting the price of cotton to the market. It should be a good news for cotton textile enterprises. Why are enterprises generally pessimistic?

    According to the insiders, although the domestic cotton market is facing many changes in 2014, in the short term, the policies that affect the domestic cotton market will still dominate the market in the short term.

    First of all, the collection and storage will continue. The cotton reserve will continue in February 7th and will be released until August 2014. The national cotton purchase and storage will start again in February 17th and will continue until the end of March.

    The second is the new cotton import policy which is closely related to the foreign cotton market. The quota and sliding tax are basically determined. Even though the latter may change, the short term should not change.

    Therefore, these policies will still dominate the domestic market at least in the next few months.

    < /p >


    < p > < strong > cotton price downward or a href= "http://www.91se91.com/news/index_cj.asp" > inventory depreciation < /a > /strong > /p >


    < p > 2014, one of the biggest changes in domestic cotton market in Xinjiang is cotton direct subsidy in the pilot plant. Recently, it was reported that the relevant direct subsidy details have been announced, basically determined as cotton direct subsidy 380 yuan / mu.

    This year, Central Document No. 1 decided to break the old pricing system of some agricultural products and establish a new pricing system. The cotton direct subsidy policy is a step from the administrative pricing to the market pricing.

    < /p >


    < p > China's cotton price goes to market pricing, which means that China's cotton prices begin to move closer to the international market, and the difference between domestic and foreign cotton prices will gradually shrink.

    And from the current situation, China's cotton price decline is more likely.

    According to the statistics of China Cotton Association, in 2013, the total output of cotton in China was 6 million 770 thousand tons, down 12.5% compared to the same period last year. According to customs statistics, China's cotton imports decreased by 19.2%. in the same period last year. Although domestic cotton production and import decreased significantly compared to the same period last year, cotton supply is still not a problem, because China's cotton flower inventory is as high as 13 million tons, which accounts for about 60%. of global cotton stocks. The cotton consumption of cotton textile industry in China is basically maintained at 9 million tons a year, plus imported cotton, without considering other factors, our country's existing national cotton reserves probably have enough time for 3 years.

    Huge inventory will ensure adequate supply of China's cotton market, but at the same time, it will bring continuous pressure on cotton prices.

    < /p >


    The cotton storage price of < p > 13 million tons brings pressure to cotton prices, and cotton textile enterprises are also beginning to worry.

    In September, after the new cotton was listed, the state would no longer buy and store, and the domestic cotton price will inevitably enter the downstream channel. Then the stock price of the existing cotton and cotton yarn will also face a downward trend.

    Chen Xiachi, the cotton business department of Tianhong textile company, said that if the price of cotton throwing and storage is down a lot, then the cotton and cotton yarns of enterprises should be "depreciated", which is really a terrible thing for enterprises.

    He suggested that China's cotton throwing and storage should establish a long-term price mechanism, so that enterprises can have a judgement on cotton prices, which is more conducive to the use and production of raw materials for enterprises.

    According to the insiders, the price difference between domestic and foreign cotton 4000 yuan / ton will not be achieved overnight. It may take a long time.

    < /p >


    < p > < strong > National storage cotton quality can not meet the demand < /strong > < /p >


    < p > at present, most cotton textile enterprises rely on the auction of high priced national cotton stores. If the cotton grade is high, the quality of high-grade products can be balanced for the enterprises.

    However, in fact, from the perspective of some enterprises, the quality of cotton stored in the state is poor, especially last year's cotton, which is short in length and thick in fiber.

    The quality of Xinjiang cotton is not as good as a year from 2009 to the present. Taking the Xinjiang cotton produced this year, it can comb 40 yarns of the same grade cotton. Compared with Australia cotton, the average strength difference is between 30CN and 50CN (compact spinning). The imported cotton AFIS is detected by the imported AFIS instrument, the cotton short staple rate is 11% ~ 12%, Xinjiang cotton reaches 13% ~ 14%, the 4 minute length is from Australia cotton to 32mm, and Xinjiang cotton is about 31mm, the price difference between them is 4000 yuan / ton. A cotton in Henan

    Many cotton spinning enterprises have talked more than once, and sometimes the quality of cotton purchased from the private hands of Xinjiang is much better than that of national cotton reserves.

    < /p >


    < p > the current cotton throwing and storing quota quota of 3 to 1 is used to issue import quotas, which can be said to be a drop in the bucket for the current cotton textile enterprises. But what worries the enterprises is that the quality of cotton has dropped sharply since the purchase and storage.

    In order to achieve the national storage level, the cotton processing plant has mixed the high grade cotton with the low grade cotton. It has become the hidden rule. After mixing, the high end yarn is not up to standard, and the low-end yarn is too wasteful, which makes it difficult for the enterprise to grasp.

    < /p >


    < p > Chen Rong, general manager of Jiangsu Yueda Textile Group Co., Ltd., said that the knitting yarn customer of the company is very demanding on the product, and the quality of the cotton produced by the company is poor. The problem of "three silk" is serious, so we have to specially select "three silk" to increase the labor cost and make the original profit less meager.

    < /p >


    Tang Qiyi, director of supply and marketing section of Wuxi P Cotton Textile Co., Ltd., also said that in 2014, the company only stored 500 tons of national cotton reserves, because the company mainly produces high count yarn, and the quality requirements for cotton are relatively high.

    "Although the company is concerned about cotton throwing and storing every day, it seems that no cotton is available," he said.

    < /p >


    < p > < strong > enterprise active layout "go out" < /strong > /p >


    < p > for cotton textile enterprises, the impeding of their development is not only the high and low price of cotton, but also the cotton textile industry is a labor-intensive industry. The rising cost of labor and other production factors also test cotton textile enterprises.

    < /p >


    < p > Chen Rong, general manager of Jiangsu Yueda textile company, said that at present, the gross profit rate of pure cotton products is only 6%, and the gross profit margin of blended products is 8%~9%. Therefore, the company will continue to intensify the development of blended yarn next step.

    He said that Yueda textile in the past pure cotton in the size of 250 thousand ingot, now close to half of the production capacity is blended yarn, the company's plan is only 50 thousand spindles of pure cotton capacity, the rest of the whole conversion into blended yarn.

    < /p >


    < p > at present, the cost of labor in China's textile industry is 1~3 times higher than that in Southeast Asian countries, and the cost of cotton is more than 30%, plus the low tariff preferences enjoyed by Southeast Asian countries in developed countries. Even if the advantages of the industrial system and production efficiency are fully realized, the international competitiveness of China's middle and low grade products has declined significantly.

    Therefore, many cotton textile enterprises began to "open up territory", actively layout overseas strategy, looking forward to low production costs dividends.

    < /p >


    < p > Tianhong textile is China's earlier implementation of the "going out" strategy of the "a href=" http://www.91se91.com/news/index_c.asp "cotton textile enterprise < /a >, the domestic cotton textile enterprises are troubled by the Khmer price difference. The overall gross margin of Tianhong textile company increased from 8.1% in 2011 to 15.3% in 2012, which made the domestic cotton textile enterprises breathtaking.

    < /p >


    < p > Tianhong textile Chen Xiachi said that this year the company will continue to step up its efforts to go out and enter Turkey in 2015.

    He said that the company continued to invest and build factories overseas. In addition to considering the free import of cotton in the international market, it also considered that the wages of local workers were only about half that of China.

    The main reason for the company to invest in Turkey is neither raw material nor employment. Instead, it opens trade barriers. Originally, China exported to Turkey only 8% of its textile tariffs. In 2011, Turkey exported some developing countries such as China to the country and raised the tariff rate to 28%. As long as local factories sold products directly, they could avoid the losses caused by high tariffs and other trade barriers.

    < /p >


    < p > it is understood that Jiangsu Yueda textile company is also actively planning overseas.

    Chen Rong, general manager, said that the company is investigating Ethiopia's projects. If conditions are ripe, the company is going to set up a textile industrial park in Ethiopia.

    He believes that the earlier the domestic cotton textile enterprises "go out", the more obvious their advantages.

    < /p >

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    Read the next article

    National Cotton Store Still Let Cotton Spinning Enterprises Hang Heart

    The price difference is high and the quality is poor: the state storage cotton still lets the enterprises hang the heart, the implementation of the cotton direct subsidy policy makes the cotton price market of cotton textile enterprises to be possible, but the enterprises are worried about the high stock of the present state storage cotton. Xiao Jingyao, vice president of China Huafang group, compares the high inventory of the current national cotton store with the "flood".

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