Domestic Textile Enterprises Upgrading Needs Higher Quality Cotton

Towards the end of this year, look back this year. cotton The market, whether in 7 or August, caused by the high temperature in Xinjiang, the cotton production and quality decreased, or the difference between domestic and foreign cotton prices continued to shrink. The key points are yarn and terminal. textile clothing A double drop in demand.

At present, the quality and output of high-quality cotton produced by the domestic market has been reduced by 28 or more. As of now, 28-32mm accounts for only 73.96% of the total cotton in the new cotton market. The C2 level accounts for 38.53% of the total, compared with 86.37% and 14.68% last year.

Taking polyester staple as an example, its price trend has been significantly affected by the drop in international crude oil prices. The price of polyester staple fiber has fallen below the 2008 low point and continues to be explored. The pure polyester yarn stock pressure has increased, and price promotions are widespread. The price difference between cotton and polyester has risen from 5400 yuan / ton in early May to the current 6600 yuan / ton. Polyester staple fiber has increased the substitution of cotton, and blended yarn has become the choice of textile enterprises. In addition, the fast fashion clothing brand is favored by consumers. Compared with the traditional slow fashion apparel, the proportion of chemical fiber material in the fabric is very high, which is also one of the reasons for the shrinking of cotton consumption.

Imported yarn has explode since 2012, and jumped from 903 thousand tons in 2011 to 1 million 526 thousand tons in 2012. In 2015 1 to November, the number of imported yarn has reached a record high of 2 million 159 thousand tons. The price advantage of imported yarn on the one hand is low labor cost from raw material cotton and textile enterprises, on the other hand, it benefits from the currency depreciation of exporting countries.

In the future, the depreciation of RMB is a great probability. As the difference between domestic and foreign cotton prices is further narrowed, the cost of imported yarn raw materials will decrease, but the labor cost of Southeast Asian textile enterprises will be significantly lower than that of China in the long run.

Due to industrial upgrading and product mix adjustment, mainstream textile products are becoming more and more popular in combing. The demand for quality cotton is increasing and the sale of inferior cotton is narrowed. In addition, as the quota of cotton imports continued to limit 894 thousand tons, the difference between domestic and foreign cotton prices continued to shrink. As of last Friday, the price difference between the CCI index 3128B and the FCI index M class 1% tariff was only 1329 yuan / ton, and the advantage of foreign cotton prices declined. Therefore, the domestic limited high-quality cotton is used in the production of high yield and better varieties, inferior cotton supply exceeds demand, and the cotton demand differentiation is obvious.