Cotton Prices Are Too High, Causing Small Cotton Enterprises To Collapse And Change The Fabric Sector.

Clothing and shelter, clothing ranked first. However, China Spin clothing The growth of the industry has been very poor. Data show that in 2013, China's yarn output grew by only 1%, the growth of cloth was -2%, and clothing grew by only 1.25%, close to zero growth, the lowest growth rate over the years. There are indications that under the background of high cotton prices, the profits of domestic textile and garment industry are becoming thinner and less competitive. With the adjustment of cotton policy this year, can cotton spinning enterprises feel "warm"?

Large cotton enterprises forced to transform blending

Experts pointed out that in 2014, the inherent laws and structures of textile economy are undergoing fundamental changes. The whole industry is in a critical period of transformation of new and old growth patterns. Differentiated products and emerging products are more popular with customers. The development of bio based fibers will bring unprecedented changes to the field of textile fabrics.

Since the domestic cotton price has experienced "roller coaster", domestic cotton prices have remained high, and high cotton prices have brought high cost and low profits to the domestic textile industry. Under this background, many textile enterprises have been forced to transform and find ways to survive.

"Domestic cotton prices are too high to increase the cost of cotton enterprises, making cotton enterprises have to transform and produce high value-added products." Liu Hongguo, manager of Export Department of Shanghai cotton Expo Huarun textile (Group) Co., Ltd., introduced to the Securities Daily, a reporter at the Shanghai World Expo exhibition hall, told reporters that the cotton production density of cotton enterprises was not high in the past, so the profits were few. Now the enterprises have increased the density of cotton cloth and the profits are also much higher.

According to the insiders, the high cotton price has increased the production cost. Many strong cotton textile enterprises have begun to produce blended products with chemical fiber components.

Reporters at the China international textile fabrics and accessories (Chun Xia) exposition found that this exhibition of chemical fiber enterprises far more than cotton enterprises. "Compared with the high cost of cotton, the cost of chemical fiber is much lower, so chemical fiber products are more popular." The industry insiders said.

　 Textile industry enters low growth Era

Statistics show that in 2013, the textile industry showed a trend of "steadily increasing". Data show that in 2013, the textile industry achieved a total revenue of 63800 billion yuan, an increase of more than 11%, and realized a profit of 360 billion 500 million yuan, an increase of 17%.

"Look at the data, the textile industry is still a good situation." Gao Yong, vice president and Secretary General of China Textile Industry Federation, said at the China Textile Roundtable forum that the textile industry has entered a stage of low growth.

According to the National Bureau of statistics, the output of major textile products, such as yarn, cloth, chemical fiber and clothing, increased by more than 10% in the first quarter of last year, but dropped to about 8% in the middle of the year. After the second half of the year, the output of other major products decreased to below 8% except for the growth of industrial textiles over 12%.

"Press" cotton spinning According to the association and clothing association's calculations, the output of yarn in 2013 only increased by more than 1% compared with the same period last year, while clothing grew by only 1.25%, close to zero growth, the lowest growth rate over the years. Gao Yong said.

Gao Yong believes that the impact of raw materials on the textile industry is more and more obvious. "For example, the cotton price difference between the domestic and foreign countries caused by the cotton purchase policy made the textile industry only use 8 million 300 thousand tons of cotton last year, down 2 million tons compared with the previous year, which is nearly 10 million tons less than the 18 million tons in the peak period."

Throughout the textile industry in 2013, the spread of cotton prices has become a major factor affecting the development of the industry. Imported cotton quotas and cotton purchase and storage have become the focus of attention of textile enterprises.

In 2013, the price difference between domestic and foreign textile industry remained at 4000 yuan / ton to 6000 yuan / ton, which increased the burden and pressure on some cotton textile enterprises which did not import cotton quotas or small quotas.

"Because of the high price of cotton, the price of products is higher than that of Southeast Asia and other regions, resulting in enterprises not having single access." A cotton business sales department told reporters that due to the high cotton price difference at home and abroad, the current cotton business is very difficult, and can not receive foreign orders.

Faced with the situation of no single connection, some small cotton enterprises have to choose to close, while some strong cotton enterprises combine to transform chemical fiber products. Insiders told reporters that because of the high price of cotton, some competent cotton enterprises began to produce blended products, but not all enterprises could transform. After all, the production of chemical fiber products also needed technical support.

As for the transformation of cotton enterprises, the industry said that chemical fiber products can not be replaced by cotton products. "The moisture absorption of cotton products is more than ten times stronger than that of chemical fiber products. This is the index that current chemical fiber products can not achieve."

Chemical fiber industry faces shuffle

Unlike the cotton prices faced by cotton enterprises, chemical fiber enterprises are facing the imbalance between supply and demand caused by excess capacity of traditional chemical fiber products. Chemical fiber enterprises first felt that profit margins were compressed. The company's outspoken profit is "thinner than the blade". {page_break}

"At present, the competition of traditional chemical fiber products is too fierce." A exhibitor of the chemical fiber enterprise told reporters that the exhibitors around him said: "look at this row of exhibitors of chemical fiber enterprises are our competitors." The source said, in order to rush orders, enterprises had to carry out price war, the price of products pressed and repressed, sometimes even sold at a loss.

In the industry view, the pressure problem of PTA and PET industry chain is typical in the entire textile industry.

It is understood that the main raw materials of polyester fiber products are PTA, MEG and PET in petrochemical products, accounting for about 85% of the cost of the products. Data show that in 2012 and 2013, China's PTA industry entered a new peak of capacity expansion, and its capacity increased rapidly. In 2013, PTA capacity remained at around 33 million tons a year. In 2013, China's polyester production reached about 31 million tons.

It has been reported that in the case of PTA, the major domestic PTA producers will further increase their output in 2014. Sheng Hong Group in Lianyungang, Jiangsu, 1 million 500 thousand tons / year PTA plant, Hengli petrochemical in Dalian, 2 million 200 thousand tons / year 3 PTA device will start one after another.

Ouyang Xinzhou, senior industry researcher and analyst of foresight network, believes that in the long run, the forecast supply of all links in the global polyester industry will exceed the forecast demand. In 2011, China's PET production capacity has exceeded the apparent consumption of PET, and the capacity has begun to surmount. The problem of excess capacity of PET will be further highlighted in the future, and the bargaining power of the polyester fiber industry will be reduced. According to Ouyang's new week analysis, the PTA industry needs two to three years to digest so many new capacity.

In order to solve the problems of excess capacity and homogenization in the production of chemical fiber and chemical fiber weaving industry, Xu Wenying, vice chairman of the China Textile Industry Federation, took the lead from Beijing city and visited the enterprises in Zhejiang, Xiaoshan and Jiangsu Shengze area.

Research found that some polyester enterprises because of poor efficiency, but also in order to obtain greater voice in the PTA contract negotiations, has reduced the load or announced maintenance plan.

In the PTA production enterprises, there are also leading enterprises taking advantage of delayed delivery and other means to try to regain their initiative in dealing with customers, and at the same time take measures such as lowering prices and so on to cope with competition. In the weaving industry, the cruelty of the market is also on the stage. The head of a famous weaving town in Shengze, Jiangsu, said that the workshop type production enterprises may not survive this winter.

If there is competition, there will be elimination. Insiders believe that the low market situation can eliminate backward production capacity and poor management of enterprises. While intensifying competition, it is beneficial for enterprises to pursue technological progress.

Industry transformation has its own advantages.

Whether cotton enterprises or chemical fiber enterprises are facing difficulties, they also mean opportunities. Zhang Yansheng, secretary general and researcher of the national development and Reform Commission, analyzed the inherent laws and structure of the textile economy in 2014. The whole industry is in a critical period of transformation of the old and new growth mode.

Zhang Yansheng believes that in the past, the mode of low cost driving, simple imitation, mass production and high carbon has ended. The textile industry needs to turn to high cost, high value-added, innovation driven, high quality, small batch, customization, electricity supplier and the opportunity to make use of wireless Internet to form a new competitive advantage and extend the growth mode to "smile curve" at both ends. {page_break}

According to Liu Hongguo, manager of Export Department of Huarun textile (Group) Co., Ltd., because the domestic cotton price is higher than the foreign cotton price, the cotton cloth produced by the domestic cotton enterprises has no price advantage when facing the foreign cotton cloth, so the order is often taken away by the countries in Southeast Asia. The company's products are now on the high end line, and the cotton cloth is a product of high density and high quality. This product has a good market prospect.

In addition to cotton enterprises seeking transformation, the chemical fiber enterprises facing overcapacity are also quietly changing.

According to reporters, the main topics of chemical fiber industry in 2014 were regenerated fiber, bio based fiber and special functional fiber. Many chemical fiber enterprises have embarked on different research paths in order to find a way out. This directly leads to the homogenization of chemical fiber products gradually diverting into differentiated products with different functions.

Li Dongning, director of the information center of China Chemical Fiber Industry Association, told reporters that the exhibition hall with the largest number of people in the exhibition is the exhibition of Imitation cotton fiber (Yi Mian), recycled fiber, bio based fiber and special functional fiber and other enterprises.

Imitation cotton fiber, as the name suggests, mimics cotton fibers. Ruan Yunfeng, manager of sales and Service Department of Sinopec, Yizheng chemical fiber, believes that the future of cotton products will partly replace cotton products.

According to Lu Liyong, chairman of Sinopec Yizheng chemical fiber and Limited by Share Ltd, told reporters that Yi cotton is a product developed by a coalition of several enterprises. "There are some aspects of cotton escaping over cotton and some aspects exceeding polyester fiber. This is the direction and trend of future development."

According to the reporter, although yam cotton is not as good as cotton products in terms of moisture absorption, it has great advantages in terms of price. "The price of the cotton is 6000 yuan / ton cheaper than the imported cotton abroad, and now the imported cotton is about 19000 yuan / ton, and the cotton is 13000 yuan / ton." Ruan Yunfeng said.

In fact, after the domestic cotton price has lost its price advantage, chemical fiber The low cost advantage is revealed. In addition to the high value added cotton concept, recycled fiber is also a low cost large household.

According to Long Fu ring, Polytron Technologies Inc sales staff briefed reporters that the raw materials of the company were purchased from all over the world for waste PET bottles, and the cost was very low. "During this period of time, many people came to the company to consult. Because of the low cost of raw material acquisition, our products are cheaper than similar products and have price advantages."

In addition to developing low-cost, high value-added chemical fiber products, bio based fibers have also become one of the focuses. It is understood that more than 90% of China's chemical fiber raw materials come from oil. In order to change this situation, China Chemical Fiber Association put forward the concept of China's bio based fiber and biochemical raw materials in 2010.

"At present, to get rid of the dependence on petrochemical resources, giving priority to the development of low carbon, low consumption and low pollution biochemical raw materials, bio based fibers and their textiles has become the choice of transformation and upgrading of the textile industry." Yang Zhaohua, President of China Household Textiles Association, said.

The raw materials used in biological fibers are renewable plants. Biological fermentation is a combination of high performance and environmental protection technology instead of traditional petrochemical processing. According to the salesperson of Kaisai biological industry company, the main raw material of bio based fiber comes from plants, such as corn and so on can be used as raw materials for producing bio based fibers.

Insiders pointed out that the development of bio based fibers will bring unprecedented changes to the field of textile fabrics.

Sheng Hong group is also in the same bio based fiber, according to company insiders, from the current market, differentiated products and emerging products are more popular with customers. "The company has produced innovative ideas since last year, and more than 80% of the products are differentiated products."

For Sheng Hong group, which often deals with foreign customers, environmental protection is also one of its considerations. "Recyclable green" fibre The future of materials is better. " The company said that the company will find relevant enterprises to produce green products. At the same time, we hope to get support from government departments.