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    The Domestic Cotton Spinning Enterprises Are Facing A Lot Of Challenges.

    2014/3/23 13:59:00 25

    TextileGarment IndustryLoss

    < p > cotton price inversion at home and abroad, insufficient quota of imported cotton and rising labor cost.

    The domestic cotton mills face many challenges.

    < /p >


    < p > in view of the use of imported cotton in Chongqing, Chongqing entry-exit inspection and Quarantine Bureau recently conducted a special investigation, calling for attention to the plight of the cotton spinning enterprises, and recommending that the relevant departments assist the Chongqing enterprises in striving to import quotas and reduce production costs.

    < /p >


    < p > survey found that the constraints of raw material links have begun to force the pformation and upgrading of Chongqing's Three Gorges technology a target= "_blank" href= "http://www.91se91.com/" > textile < /a > Co., Ltd.

    < /p >


    < p > < strong > cotton price upside down industry, < /strong > /p >


    < p > on the industrial map of Chongqing, integrated textile is one of the pillar industries.

    Like many domestic counterparts, the cotton price inversion at home and abroad, which began in the second half of 2011, has caused many Chongqing enterprises to lose their minds.

    < /p >


    < p > Chongqing entry exit inspection and Quarantine Bureau found that the cotton consumption of Chongqing textile enterprises increased significantly in recent years.

    Due to China's implementation of the cotton purchase and storage policy, the cotton price has not been integrated with the market. In recent years, the international cotton price has continued to decline, showing a high and low trend.

    The survey shows that in February 2014, the average price of imported cotton reached 15000 yuan / ton, while the price of domestic similar products had reached 19800 yuan / ton, the difference was 4800 yuan per ton, and the difference was even more than 6000 yuan in 2013.

    Due to insufficient import quotas, enterprises can only purchase domestic cotton to meet production demand, and production costs remain high.

    < /p >


    < p > "cotton cost accounts for about 7 of the total cost of textile enterprises. Because of the quota management of cotton imported by the state, it is difficult for cotton spinning enterprises to get the quota of imported cotton, and the domestic cotton price is so high that the cost of raw materials is high and the profits are swallowed up."

    Fan Zhuliang, head of Chongqing Three Gorges technology and Textile Co., Ltd., director of management and control office, said that the company processes about 40 thousand tons of cotton annually and is also the largest cotton importer in Chongqing.

    In 2012, the Three Gorges textile got 18 thousand tons of cotton quotas, and only 12 thousand and 300 tons in 2013, a decrease of nearly 1/3.

    < /p >


    < p > < strong > textile enterprises lingering loss margin < /strong > < /p >


    < p > interview has learned that, influenced by cost, coupled with the weak market consumption in recent two years, some textile enterprises have been at the edge of losses.

    < /p >


    < p > Shapingba Huilong dam town is known as "textile specialized town" in our city.

    Yesterday, Xu Xingquan, director of the economic development office of the lung dam town government, said in an interview with the Commercial Daily that at present there are about 400 textile enterprises in the town. Due to the weak market consumption, the inventory is high and the cost is rising. Last year, about 20% of the enterprises fell in profits.

    < /p >


    Tang Yuanchuan, director of Yangtze River textile Co., Ltd., P, also said that in addition to the rising cost of cotton and other costs, the export side was not very satisfactory, and most textile enterprises were faced with profitability problems.

    < /p >


    < p > Fan Zhuliang revealed that the overall cost of the Three Gorges textile increased by 10% at the same time last year, and the difficulty of operation increased significantly due to the increase in domestic and foreign cotton prices and the increase in labor costs.

    What worries them even more is that the company will invest 15 billion yuan to build the "western textile city" to build the largest and most technologically advanced compact spinning production and R & D base in China. After the completion of the project, the annual import volume of cotton will reach 40 thousand tons. If the cotton price inversion at home and abroad can not be solved, the development of the enterprise will be greatly affected.

    < /p >


    < p > 2011~2013, Chinese textile < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > manufacturing industry, the number of loss making enterprises gradually increased, 1033, 1741 and 1818 respectively.

    < /p >


    < p > combing the performance of several large textile enterprises in 2013, we found that Huafang textile, Taya stock and German cotton share were all at a loss.

    Among them, Huafang textile net profit loss 32 million 510 thousand.

    "In 2013, the textile industry has been in a downward trend for nearly three years. Because the domestic cotton prices are much higher than the international market, the cost is rising and the recovery of the international market is not stable, textile enterprises are not going anywhere."

    Huafang Group official said.

    < /p >


    < p > < strong > forcing the pformation of industrial chain to break down the difficulties < /strong > < /p >


    < p > < strong > the test of cost link has begun to push the pformation of textile industry.

    < /strong > < /p >.


    Xu Xingquan, director of the economic development office of the lung dam town, P, said that at present, some enterprises in Huilong dam have improved or imported advanced equipment to improve production efficiency.

    For example, last year, a company bought 96 advanced air-jet looms.

    Some enterprises are seeking a way out through product innovation, and begin to exert their efforts to special-purpose products such as high-end a target= "_blank" href= "http://www.91se91.com/" > cloth < /a >.

    < /p >


    < p > "in addition, the town government is also actively helping enterprises to further solve the problem of financing."

    Xu Xingquan said that last year, by introducing several banks to cooperate, it raised 350 million yuan for local enterprises.

    The government is also guiding the pformation of management and business philosophy.

    < /p >


    Fan Zhuliang, director of management and Control Office of Chongqing Three Gorges Technical Textile Co., Ltd., revealed yesterday that the high price of cotton at home and abroad had increased the cost of cotton enterprises too much, which made cotton enterprises have to upgrade and produce products of high added value. P

    Take the company as an example, it has decided to reduce the amount of cotton used to produce blended products, and it is expected that the new products will be in the next phase of the moon.

    < /p >


    < p > however, the problem of cotton prices hanging up in textile enterprises will usher in an inflection point this year.

    < /p >


    < p > the national development and Reform Commission has identified Xinjiang as a pilot area for cotton farmers' direct subsidy policy. It plans to pform the past policy of temporary cotton purchase and storage with strong administration to strengthen the cotton farmers' direct subsidy policy to strengthen the market function.

    < /p >


    < p > Sun Liwu said in an interview that the implementation of the cotton direct subsidy policy means that domestic cotton prices will also be linked to the market. According to the supply and demand situation, the price of domestic and international cotton will be integrated.

    < /p >


    < p > Sun Liwu introduced cotton purchasing and storage policy at the beginning of its implementation. It played a positive role in supporting the market. However, with the change of environment at home and abroad, the implementation of the temporary purchasing and storage policy for three years can no longer meet the development needs of the cotton market. In the process, cotton growers have not benefited much, and through direct subsidy policy, the enthusiasm of cotton growers will be improved.

    On the other hand, at present, domestic cotton reserves are about 13 million tons, and the volume is relatively large. Comprehensive analysis shows that domestic cotton prices will show a downward trend, favorable for textile and garment enterprises.

    < /p >


    < p > < strong > recommendation < /strong > < /p >.


    < p > < strong > increase policy support < /strong > /p >


    < p > Chongqing entry-exit inspection and Quarantine Bureau's survey shows that in terms of quality, in 2013, Chongqing Port imported 8770 tons of cotton for inspection and quarantine, and the value of goods was 19 million 680 thousand US dollars, of which 83.33% of the unqualified batches were detected in quality, which helped enterprises achieve 394 thousand and 900 USD in external claims.

    At the same time, the problem of short weight is prominent, and 100% of the arrival batches are short weight, with an average short weight rate of 1.48%.

    < /p >


    < p > according to regulations, imported cotton can not be used without inspection.

    However, due to the absence of a designated cotton inspection laboratory designated by the state as far as Chongqing and the southwest area are concerned, the samples should be sent to Hubei, Shaanxi and other places for quality inspection. After the inspection, the enterprises need to claim the certificates according to the quality and weight claims issued by the inspection and quarantine agency.

    And the validity period of imported cotton claims is only 90 days from the entry calculation. After deducting entry clearance, turning boxes to inland waterway pport, sampling inspection and other links, the time left for enterprises to claim foreign claims is shorter, which seriously affects the production schedule of enterprises.

    < /p >


    < p > > the Council recommends that it continue to increase its policy support to cotton spinning enterprises, help enterprises to strive for more a href= "http://www.91se91.com/news/index_f.asp" > Import < /a > quota, and give greater support and preferential treatment to preferential taxation, export rebates and products export, etc., and set up an imported cotton inspection laboratory in Chongqing as soon as possible, so as to solve the problem of too long inspection cycle of imported cotton, avoid mispaying and safeguard the legitimate rights and interests of cotton enterprises.

    < /p >

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