Cotton Prices Decline, So That Cotton Textile Enterprises Are Facing The Collapse Edge.

The fluctuation of textile raw material prices, which tests the cost risk control ability of enterprises, is an old problem in the textile industry. It has not been well solved over the years.

The future development of the textile industry will still face this old problem. The cost of raw materials such as cotton will occupy the highest proportion in the production cost of textile enterprises.

But the survey found that many small and medium-sized cotton processing enterprises and textile enterprises have stopped production or closed down, and some large textile enterprises are in a state of insufficient operating rate.

This year is the most difficult year for the textile industry in the past more than 10 years. The factories that have not stopped production during the financial crisis have been shut down for over a month now, and they can not start up.

Cotton prices rose first and then fell. Downstream customers took a wait-and-see attitude, which affected the sale of cotton spinning enterprises in the first half of the year.

The mentality of not buying down makes foreign customers dare not place orders, resulting in a reduction in demand.

In addition, although domestic cotton prices have dropped sharply, foreign cotton prices have also dropped, or even lower than domestic ones, which has led to a decline in competitiveness of Chinese textiles.

More importantly, foreign customers do not think that the price of cotton is in the end, which is evident in the new contract.

With the continuous appreciation of RMB and the continuous reduction of export tax rebate, the profit margins of enterprises have been getting smaller and smaller.

This year's cotton textile industry situation is still difficult to make a big improvement. At present, some enterprises are going bankrupt and bankrupt. This year cotton textile industry is integrated, eliminated or trend.

Many people in the industry are worried that the cost and risk control ability of enterprises has not been overall and substantially improved in the past ten years, and the future development of the textile industry will still face this old pain.