Warnings For Cotton Enterprises To Join Xinjiang'S "Cotton Sea" In 2016: 3 New Changes In The Cotton Industry

In the past 2015,

The cotton processing industry has seen some new changes since 2014, some of which are quite unexpected.

But no matter what the result is, it will be a reference for cotton enterprises in Xinjiang to join the "cotton sea" in 2016.

In recent years, the area and output of cotton growing in the mainland have dropped dramatically. As a new highland for cotton planting in China, Xinjiang has become more and more important. Its cotton output has accounted for about 70% of the total output of the country.

Especially in 2014, Xinjiang.

In the first year of the implementation of the rules, cotton prices were returned to the market and formed by market supply and demand, and the government did not intervene.

At this point, 400 cotton enterprises encountered Waterloo, many cotton professionals said that in 2014, nearly 80% cotton enterprises in Xinjiang were not profitable, and the vast majority of enterprises lost their wives and soldiers.

There are more and more risks in the processing industry.

In 2015, the new policy of target price continued to be implemented. Under the background of the double drop of cotton production and quality in Xinjiang, there were new changes in intra cotton enterprises.

Pay attention to the quality of lint processing

Under the background of domestic cotton structural imbalance, the cotton processing enterprises in the territory have done enough efforts in cotton purchasing and processing, striving to improve the quality of lint processing.

In 2015, the competition in the cotton market became increasingly fierce. The quality cotton was not only in short supply, but the price was down, but it was generally in grade.

Few people ask for it.

In order to ensure the lint length, strength, horse value and other indicators, improve the processing quality, enterprises strictly control the quality from the beginning of the acquisition, and even some enterprises initially reject the seed cotton with a fiber length less than 27mm.

In addition, in the processing stage, we should improve the speed and cleaning process to ensure the quality of lint.

Speed up sales progress

Cotton sales progress in 2015 is faster than 2014, and the main reason is two.

According to the national cotton market monitoring system data, in 2014, cotton production in Xinjiang was around 4 million 300 thousand tons, while output in 2015 dropped to about 3 million 660 thousand tons.

Two is the cotton farmers and cotton enterprises reluctant to sell emotions greatly reduced, because in 2014 to take measures to sell, cotton enterprises lose more, so in 2015, generally take the quick sales strategy, even in the case of micro deficit also resolute shipment, in order to prevent cotton in their own hands.

The mainland cotton enterprises have contracted most of the cotton ginning plants in the territory.

In the face of a sharp decline in cotton production and output in the mainland, cotton processing capacity is severely overloaded, and cotton enterprises in the mainland are facing the situation of survival of the fittest.

Some enterprises choose to suspend operations, and some enterprises resolutely choose to go to the Xinjiang Bao factory to persist in the cotton processing industry.

Against this background, most of the enterprises in the territory choose to contract the cotton mill with market risk.

At the end of September 2015, a person in charge of cotton enterprises in Wensu County of Akesu said that the local 80-90% ginning plants were contracted by Wenzhou people. Because of the fierce competition, these Wenzhou businessmen are gradually withdrawing from the industry.

In Korla, another cotton enterprise in Korla said that most of the cotton processing plants in the region were the mainland cotton enterprises in Xinjiang, and only a small part of Xinjiang's local processing enterprises.

This change is indeed unexpected.

In the face of these changes in 2015, how will cotton enterprises cope with the cotton market in 2016?