Jiangsu Textile Enterprises "Fly Together" To Southeast Asia

Since last year, domestic and foreign cotton prices have been seriously upside down. Spin Enterprises are seeking transformation.

According to the reporter, at present, the price of cotton abroad is less than 6000 yuan per ton compared with domestic prices. Excessive cotton prices have greatly reduced the profits of many textile enterprises in Jiangsu. Some enterprises have been fighting overseas markets to maintain their growth.

　 Price upside down at home and abroad

In March 11th, China's cotton price 328 index soared to 19346 yuan / ton, while the cotton COT-LOOK international cotton price index of that day was 93.50 cents / pound, equivalent to 12776 yuan / ton. This means that cotton prices in the same period are 6570 yuan more than the international cotton price per ton. In March 19th, China's cotton price 328 index has risen to 19428 yuan / ton.

The statistics of the China Federation of textile industry show that the average price difference of cotton at home and abroad was 2410 yuan per month in 9~12 months in 2011. In 2012 1~3, the average price difference between domestic and foreign cotton rose to 3638 yuan per ton; from August to September September, the domestic cotton price was 18520 yuan per ton, while the foreign cotton price was increased by 1% and the price of the related value-added tax was 13060 yuan per ton, and the price difference was 5460 yuan per ton. Today, the price per ton is 6500 yuan, reaching a record high.

Jiang Jianhua, general manager of a textile enterprise in Nantong, Jiangsu, told reporters that in fact, the upside down of cotton prices at home and abroad is not new, but such a high price inversion is rare. "At present, cotton in the domestic market is around 20 thousand yuan / ton, but the price of cotton in the international market is between 13 thousand and 14 thousand yuan."

In addition, Jiang Jianhua also told reporters that because of the low price of foreign cotton, many domestic enterprises chose to import foreign cotton directly, but there were quota restrictions on cotton yarn imports in China, and some of them had to use domestic cotton for processing, which seriously weakened the competitiveness of enterprises.

"Because of domestic cotton The price is much higher than the international market, and the cost is rising. The benefits of domestic textile enterprises are much better. " Huafang textile securities department, a staff member who declined to be named, said so to reporters.

　 Many Jiangsu textile enterprises move overseas

In the face of rising domestic cotton prices, Jiangsu's textile enterprises try to transfer factories to overseas to ensure the efficiency of enterprises.

Zhangjiagang Dong Du group, an early textile enterprise in Jiangsu, has increased its sales and profit margins to two figures in 1~2 months this year. Orders have been placed in September this year. Xu Weimin, chairman of the Dong Du group, said that in 2003, the company put the sales center in Singapore, and the financial center also followed the past. "Foreign cotton prices are much cheaper than domestic prices. First, they reduced our cost. In addition, due to the high cost of financing at home, it has become an inevitable choice for enterprises that need financing.

Jiang Jianhua, general manager of a textile enterprise in Nantong, told reporters that a T-shirt priced at 50 yuan would cost 15 yuan per item if only two items of cotton and labor cost were produced in Vietnam. "Under this background, more and more Chinese textile enterprises plan to move their factories to Southeast Asia."

In addition, Jiang Jianhua also told reporters that in general, cotton raw materials account for more than 70% of the cost of cotton textiles. Foreign enterprises whose orders are usually priced at the international cotton price, but the cotton yarn produced by domestic enterprises is produced with higher price domestic cotton. "Under normal circumstances, when the domestic and international cotton price difference is about 2000 yuan per ton, the enterprise can remain competitive, and the current price difference has far exceeded the scope that the enterprise can afford."

Regarding this, Xie Ming, a researcher in the textile industry, told reporters that "gathering in a low cost region is the instinct of an enterprise. On the whole, China's light industry has shifted outwards. Jiangsu The most serious phenomenon may be that Lari will continue to be strong as domestic cotton prices continue to grow.