Cotton Industry Chain Into The Hidden Rules Of Reform Dividends Can Have The Share Of Textile Enterprises

Following the big migration of textile enterprises, data show that in the first three quarters of this year, many textile and garment enterprises in China are still in a state of loss of operation.

　　 Spin Enterprise predicament

The head of a large textile enterprise in Guangdong told reporters: "the price difference between domestic and international lint per lint is about 3000 yuan, and domestic stock is also tight. Is this normal? Our material cost is higher than that of others, labor cost is also higher than southeast Asia. Where is the road of textile and garment enterprises? How can China's textile enterprises compete fairly with foreign enterprises?"

In Zhejiang, which is the focus of China's textile enterprises, the person in charge of a textile enterprise has the same feeling. He told reporters that after the financial crisis, most textile enterprises have been in a doldrums, export orders have been reduced, textile enterprises once appeared labor shortage, cotton prices and labor costs continue to climb, so that all textile enterprises are struggling. On the other hand, the lack of innovation, the long development cycle and the high cost of research and development also restrict the competitiveness of Chinese textile enterprises in the world. "However, this is related to the overall living environment of the enterprise, and its R & D expenses are directly proportional to the overall revenue of the enterprise." He explained.

According to the data of the international cotton association, the cotton harvest is quite good this year. Europe, the United States and Pakistan have a bumper harvest this year. India has become the main cotton producing country all along. Xinjiang, Shandong, Henan and other cotton producing areas are also a good harvest.

China cotton According to the association's data, China's current cotton inventory is about 12000000 tons, and the total annual actual consumption is 6 million 800 thousand tons. This year's output is about 6600000 tons and the quota is 890 thousand tons. The total supply will exceed 19 million 690 thousand tons. That is to say, with the current inventory level, even if it is no longer in storage, there will be no shortage of raw materials in 3 years.

Contrary to the huge cotton stock and high yield, short-term supply and demand and market spot are still tight.

　 The difference between inside and outside is bigger.

According to the monitoring data from the national cotton market monitoring system and the website of the Ministry of agriculture, as of October 2014, the national cotton picking rate was 47%, down 12.1 percentage points compared to the same period last year, and the percentage of seed cotton sale (accounting for the proportion of picking) was 56%, which slowed down 6.5 percentage points compared with that of the same period last year. The cotton processing rate of the cotton processing enterprises (29 of the sales share) was 29 percentage points lower than that of the previous year, and the sales rate of new cotton (2% of the total sales) decreased by 14.4 percentage points compared with the same period last year. Among them, the picking rate of Xinjiang new cotton was 39.8%, slowing down 14.8 percentage points compared with the same period last year, and the seed cotton sale rate was 76.6%, an increase of 4.2 percentage points compared with that of the previous year, and the seed cotton processing rate was 29.9%, which slowed down 21.4 percentage points compared to the same period last year. The sales rate was 0.6%, down 15.9 percentage points compared with the same period last year.

Downstream industry Chains such as yarn and cloth market were closed, the price of cotton yarn continued to decline, textile enterprises were still cautious in purchasing lint, and domestic cotton spot prices declined.

In terms of futures, the average selling price of domestic standard cotton is 14821 yuan / ton at present, and the settlement price of New York cotton futures contract is 63 cents / pound in December. The international cotton index (M), which represents the average price of the Chinese main port on the import cotton, is calculated by 1% tariff, which is equivalent to 11912 yuan / ton of import cost, which is 126 yuan / ton lower than last week, or 1.1%, lower than the domestic market 2909 yuan / ton.

Internationally, India's state-owned Cotton Corp, the main cotton producing country, has not yet launched large-scale acquisitions. It is understood that the official delay in the purchase is due to the excessive moisture content of seed cotton. The acquisition is expected to start in early November, and the quality and quantity of seed cotton will be improved.

Analysts pointed out that with the new cotton coming out of Xinjiang in Xinjiang, which is conducive to easing the current tight market resources, there will be pressure drop on cotton. But it is undeniable that imported cotton is lower than the domestic market cotton prices.

Can reform solve the dilemma?

With the deepening of reform, the reform of the cotton market has entered the stage of implementation. The contents include stopping the reserve cotton delivery, leaving room for the purchase and sale of new cotton. In addition to issuing additional duties within the tariff, it does not increase import quotas in principle, encourages textile enterprises to use more domestic cotton, and takes necessary measures to guide market participants such as large cotton enterprises to actively enter the market and prevent "selling cotton difficultly".

Observers point out that this is a gospel that will really connect with the market, and that cotton trading will be priced by market supply and demand, and that the government will no longer interfere. At the same time, the basic benefits of growers are guaranteed. The state no longer receives temporary storage at fixed prices. When the market price is low, the growers' income is guaranteed through state subsidies, stabilizing cotton production.

However, there are also some market participants who show their worries. In the process of policy implementation, especially the various contradictions in subsidies, they are intertwined. Under the favorable policies, how to achieve a smooth transition, promote the smooth reform of the reform, and break the current market vicious circle will fundamentally change the enthusiasm and confidence of the latter growers.

Whether Chinese textile enterprises can really enjoy the reform dividends and enjoy equal and fair competition internationally will have a far-reaching impact on the trend of Chinese textile enterprises in the later stage.