Cotton Textile Industry Expands Its Scope Of Operation

Low cotton prices will be conducive to the overall development of the cotton textile industry, Yang Shibin said, China's cotton prices in the 13000-14000 yuan range, will be more conducive to the cotton textile industry. The difference between domestic and foreign cotton prices will be narrowed to less than 2000 yuan per ton. It helps to enhance the international competitiveness of China's textile industry.

In terms of total volume, low cotton prices will enhance the demand of cotton market and facilitate the recovery of cotton textile industry scale.

　　 China Cotton Association And the China Textile Industry Federation told the great wisdom news agency that in 2014, China's cotton consumption is expected to grow 500 thousand tons to 8 million 500 thousand tons.

Low cotton price cotton textile industry The risk is whether the prices of cotton, cotton and other related products are "resilient". Affected by the decline in raw material prices, downstream textile prices are also partly under pressure. However, from the 2014 market performance, Lu Tai A, Huafu color spinning and other enterprises performed well. Chairman of Huafu color spinning Sun Wei Ting The company's sales price dropped by less than that of raw materials, he said.

Lu Tai A, the third quarter of 2014, the price of shirts and dyed fabrics and sales volume did not decline compared with the same period last year, but because of the company's 130 thousand acres of cotton cultivation business, the decline in cotton prices dragged down the related business revenue.

Cotton price trend is unknown, such as continuous downward exploration, may also have a certain impact on the sales of cotton textile industry market. Recent market discussions show that cotton prices have fallen sharply, leading to cautious orders for cotton textile downstream customers. Stable cotton prices will help restore orders, leading enterprises and enterprises with differentiated competitive products will have stronger bargaining power.

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In the era of low cotton prices, the impact of polyester, viscose staple and other cotton substitution industry increased. But in the industry adjustment stage, some leading enterprises may have certain market integration opportunities.

Take the polyester industry as an example, the low price of cotton leads to a continuous decline in polyester prices, and the market demand is facing stronger competition from low price cotton. The reality of the excess capacity of the polyester industry is that the gross profit margin of polyester enterprises continues to be low at this stage, with obvious signs of reduction in production.

The China Chemical Fiber Association believes that the operating rate of China's polyester industry is around 70%, while some foreign institutions believe that the operating rate is around 65%. Low opening rate shows that polyester industry is not a "money making" industry at present.

From the perspective of the future trend of the polyester market, the China Textile Industry Federation reckon that the global growth rate of the population and the natural growth rate of the market brought by the growth of per capita fiber consumption will be estimated to increase by about 20 million tons by the year 2020. According to the current proportion of China's textile industry in the global market share, China may form an increase of over 10 million tons of fiber market. Most of this increment will be assimilation for China's chemical fiber industry, especially polyester industry.