Small And Medium Textile Enterprises 4 Strokes To Spend The "Vacuum Period" Of Cotton

014 years in August 31st cotton throws the store to end, in September 1st the domestic cotton textile enterprise starts to face the cotton market's another situation.

Due to 3 consecutive years of cotton purchasing and storage policy, the quality cotton resources that can be circulated in the market are almost dried up, and the new cotton can only reach the downstream textile factories by the end of October. If the public inspection report is required to arrange the pportation and application subsidies only after the public inspection is required, then the new cotton market will be delayed for about 15 days.

So in the 60~70 vacuum period, there will be no cotton for sale in the market.

It can be said that the existence of "vacuum period" of cotton has little impact on large cotton textile enterprises. Large cotton textile enterprises usually have raw material safety stock for several months. During this "vacuum period", enterprises can just consume relatively high price of cotton stocks. When the new cotton market is available, enterprises can have liquid capital to purchase new cotton with low price.

But for small and medium-sized enterprises, the situation is different.

Due to the large amount of capital needed to shoot and store cotton, in the downward trend of cotton prices, holding inventory means loss, and the larger the inventory, the greater the loss. Therefore, small and medium sized textile enterprises mostly adopt the strategy of "buying with the purchase".

But during the "vacuum period", small textile enterprises have to face the awkward situation of not buying cotton when they are "used".

In addition to stopping production, where do the raw materials for small and medium sized cotton textile enterprises maintain their production? The author visited several small cotton textile factories and found that the measures for small and medium sized cotton spinning enterprises to deal with the "vacuum period" of cotton are basically the following.

First, we should make use of the quota of imported cotton.

Before August 31st, the small and medium cotton mills held the "group buying" cotton and got the relevant cotton import quotas to share in proportion. In 9~10 months, the imported cotton was used instead of the cotton gap, which could lower the cost of cotton raw materials. This will also make the quotation of cotton inside and outside the port bonded warehouse in 9~10 months to a certain extent.

The two is to replace product varieties.

At present, the price of viscose raw materials has dropped to a low level of 5 and a half years, and the price of polyester is also very competitive. Cotton substitute such as modal and Tencel is no longer "tall". These raw materials have greatly affected the market share of cotton fiber. Recently, the "super Imitation cotton" new polyester fiber has recently come out of scale production, which has attracted the attention of downstream customers.

The three is to seek import yarn instead.

As the amount of cotton consumed by the low count yarn is large, it is mainly imported from abroad, commissioned by overseas factories to do OEM production, and the overseas suppliers are required to be packed according to the standards of domestic yarns and sold to China's ports after customs clearance.

120 day letter of credit for imported yarn.

In this way, both customers can be retained and sufficient cash flow support can be obtained.

There is also the speed of reducing cotton consumption within the enterprise, slowing down production capacity, or producing high count yarn.

Four is

"Black land" cotton.

As the cotton storage and storage in the past 3 years has been stored and stored according to the output, there are many cotton fields in Xinjiang where landlords have built their own land, and the households are afraid to report it, nor will they include the subsidy scope. However, these cotton flows to the market, thus enriching the spot cotton resources of the small and medium cotton mills.

At present, the industry is no longer domestic.

Whether it falls to 13000 yuan / ton, but in the two cotton year of 2015/2016 and 2016/2017, will domestic cotton prices fall to about 10000 yuan / ton.

It may be very frightening to see this figure, but the domestic cotton price trend has become a consensus. Therefore, whether it is large enterprises or small and medium-sized enterprises, unless they are forced to do so, spinning enterprises will not buy and hoard cotton waiting for depreciation before the new cotton goes public.