Heze: Textile Enterprises Are In A State Of Anxiety, Anticipating That The Futures Market Will Help The Industry Get Out Of Difficulties.

In Shandong, a major textile Province,

Cotton enterprises, whether participating in the futures market or the quality of the futures market, are much higher than other markets.

Many Heze cotton enterprises, including Heze Guohua Textile Co., Ltd., Shandong Ming Sheng Textile Co., Ltd., Heze Galaxy Textile Co., Ltd., Heze Xianghe Cotton Industry Co., Ltd., all have succeeded in hedging cotton futures.

At present

Under the background of recession, Heze cotton textile enterprises look forward to walking through "two legs" now, so as to enable enterprises to complete pformation and get rid of difficulties at an early date.

The current situation of textile enterprises is worrying.

Heze is an important textile industrial base in Shandong, but in recent years the local textile industry has been stagnant.

According to Zhao Shuangzhen, chairman of Heze Cotton Industry Chamber of Commerce and chairman of Heze national flower Textile Co., Ltd., at present, about 1/3 cotton enterprises in Heze are shutting down, and 1/3 enterprises are running under construction and running poorly.

Only 1/3 cotton enterprises have normal production and operation, and there is a certain profit margin, mainly for the production of more than 40 high count yarns.

"Cotton purchase and storage policy implemented in previous years is protecting cotton farmers.

The processing enterprises played a role.

Because of policy underpinning, cotton prices are higher, seed cotton prices in 2013 reached 4.5 yuan / Jin, cotton growers had high enthusiasm for planting cotton, and cotton processing enterprises also had stable profits.

However, this policy has a negative impact on cotton spinning enterprises. "

Zhao Shuang Zhen said that when the policy of purchasing and storing was implemented, domestic cotton prices were much higher than foreign prices, and the cost of production of cotton spinning enterprises increased. Most cotton spinning enterprises did not make profits or even lose money, and some of them went bankrupt.

Li Shiping, general manager of Shandong famous textile Co., Ltd. also believes that the cotton purchase and storage policy has protected the interests of farmers to a certain extent, but it has seriously affected the interests of cotton spinning enterprises. As a result, the amount of cotton used in enterprises has dropped sharply, which has damaged the interests of cotton farmers. This has formed a vicious circle to a certain extent.

In addition to the cotton purchase and storage policy, the cotton textile enterprises in Heze have been impacted, and there has been a continuous influx of cotton outer yarns in recent years.

In the past few years, the impact of cotton is relatively large, and the impact of external yarns has been greater in recent years.

Li Shiping said.

Zhao Shuang Zhen also said that the import of 32 cotton yarn is 1000 to 2000 yuan / ton lower than the domestic similar products.

This has made a huge impact on Heze textile enterprises, especially the low spin yarn enterprises.

Cotton planting has been neglected.

Zhao Shuang town provides data to reporters, as an important cotton production base in Shandong, the cotton planting area of Heze in the 80s of last century once reached 6 million 500 thousand mu.

However, since 2000, the cotton planting area in Heze has been decreasing year by year, especially since 2010.

"In recent years, the planting area of cotton in Heze has been gradually reduced, and only a few plants have been planted in Juye county and Chengwu county."

This is mainly because the benefit of cotton planting is far less than other crops, and it takes time and labor, Li Shiping said.

"In 2010, the cotton planting area in Heze was 2 million 779 thousand and 400 mu, and it was only 960 thousand mu this year."

The straight decline of cotton planting area makes Zhao Shuang town very worried.

"In 2014, Heze's cotton output reached 500 Jin / mu, but the price was only 3.1 yuan / Jin.

If the cost of planting and watering is 500 yuan per mu, and the labor cost is 1100 yuan / mu, the cotton farmers will lose at least 50 yuan / mu.

Zhao Shuang town said.

If cotton growers change their crops, the profits will be double.

Zhao Shuang Zhen said that if the wheat and corn (2508, -5.00, -0.20%) two crops were planted, the net income of farmers was about 800 yuan / mu, which was 850 yuan / mu more than that of cotton planting.

If planted vegetables, net income will be 2000 - 3000 yuan per mu higher than cotton.

In addition to low planting efficiency and low degree of mechanization, it is also one of the reasons for the continuous reduction of cotton planting area in Heze.

"The main crops such as wheat and Maize in Heze are basically mechanized and the intensity of labor is greatly reduced.

Peanuts, soybeans (4342, -20.00, -0.46%), garlic and other cash crops also began to try agricultural mechanization.

But cotton planting plots are too scattered, large machinery can not be used, and lack of small cotton agricultural machinery, most of which are still planted, managed and harvested.

Compared with other crops, labor intensity is strong, which affects cotton farmers' enthusiasm for growing cotton.

Zhao Shuang town said.

Market pformation and upgrading

A number of local cotton textile enterprises responsible persons told the futures Daily reporters that Heze cotton spinning enterprises were basically running poorly in recent years, and the overall loss of the industry was serious, and the development prospect was worrying.

However, this situation has changed since 2014.

"One is that the state has made appropriate adjustments in tax policy, the two is to implement cotton target price subsidy policy, and domestic cotton prices have dropped, and cotton spinning enterprises are better than before."

Zhao Shuang Zhen expresses.

For Heze's troubled cotton enterprises, policy support can not solve the fundamental problem.

In order to get rid of the crisis of survival, we must upgrade the industrial structure, develop new products, and take the road of innovation and technological pformation.

In fact, many cotton enterprises in Heze are on the road of upgrading, and the products begin to develop in high value-added direction.

"Because many years engaged in the cotton industry, there is no way to change to other industries, only to find a way out of the predicament.

In the past half year, we started producing cotton and cotton yarns. Since the second half of 2014, we have expanded the industrial chain, involving not only cotton ginning, textile, but also new cotton quilts and other bedding products, and opened up online sales business. These new attempts have already achieved initial success.

Zhao Shuang has confidence in the pformation and upgrading of enterprises.

Li Shiping also said: "in the pformation of enterprises, we have chosen high-grade cotton yarn products, and gradually increased investment in technological pformation. At present, the effect is obvious.

The difficulty is a relatively tight fund.

In the pformation and upgrading of enterprises, Zhao Shuang town also felt a tight financial situation.

"The main difficulty we face now is lack of funds.

The financial sector does not support cotton spinning enterprises in terms of credit policy, setting up too high a threshold, and the difficulty of financing and financing is very prominent.

Zhao Shuang town reluctantly told reporters.

Expect the futures market to help the industry get out of difficulty

For many cotton enterprises in Heze, spot and futures are like two wings of a bird and two wheels of a car.

In the critical period of the pformation of industry, the futures tool is indispensable.

Zhao recalled to reporters about the initial entry into the futures market.

"At that time, there was a lot of stock in the company. In order to avoid risks, we hedged on cotton futures and locked profits."

He said that in addition to hedging, the company also carried out the warehouse receipts business in the futures market, that is, mortgaging the generated warehouse receipts ahead of time, releasing most of the funds and relieving the financial pressure of enterprises.

While participating in cotton futures, Zhao Shuang town is also concerned about the upcoming cotton futures.

"In the design of cotton yarn futures contracts and the setting of benchmark deliveries, the exchange can visit more cotton textile enterprises and listen to opinions and suggestions more closely to meet the needs of enterprises.

Under suitable circumstances, we will take an active part in cotton yarn futures. "

Zhao Shuang Zhen expresses.

Like Zhao, Li Shiping and his Shandong Ming Sheng Textile Company received a large number of warehouse receipts from futures markets between 2005 and 2009.

"Futures market cotton quality is better, then the price is also appropriate, than buying spot has advantage."

According to Li Shiping, from 2010 to 2011, the company also carried out some hedging operations, the overall effect is good, reducing the fluctuation of raw material prices.

What is the enthusiasm of Heze cotton spinning enterprises to participate in the futures market is higher than that in other parts of Shandong? For this reason, Zhao Shuang town has given its own summary: first, Heze is an important cotton textile base in Shandong, cotton spinning enterprises are more abundant and cotton resources are abundant; two, the establishment of cotton delivery warehouses, which provides convenient conditions for enterprises to participate in the futures market; three, Heze cotton textile enterprises have more understanding of futures markets, and most cotton enterprises both do spot and futures hedging, which greatly improves their operation.

In Li Shiping's view, cotton enterprises in Heze have a higher level of utilization of the futures market, and many enterprises have tasted tangible sweetness through participating in the market.

"The vigorous publicity of some Futures Company before and after the launch of the cotton futures market has given us a deeper understanding of the futures market and gained more confidence in the market."

Li Shiping said.