Cotton Enterprises In Mainland China Feel Sorry For 2016 Spring Festival

Recently, reporters and a Shandong cotton enterprises responsible person exchanges, the person in charge said, 2015 years of operation for three months, a loss of about 200000 yuan, and there are some invisible losses, the Spring Festival in 2016 is sad.

To calculate profits, we must first calculate the cost.

The director calculated an account of the Yellow River basin from mid October 2015 to the end of December.

The price is maintained at 3.0-3.15 yuan / jin (high quality, average lint percentage 39%, moisture regain 10%), processing fee 900 yuan / ton, according to the average price of cottonseed 1.11 yuan / Jin, loss 2%, 3128B level.

The direct cost is 12926 yuan / ton.

As we all know, the mainland cotton "three silk" more, for this reason, their factory uses two large "three silk" cleaning machine, enters the factory seed cotton first through four times to manually select "three silk", and then through the "three silk" cleaning machine.

The cost of labor and electricity alone is only 260 yuan / ton, and the pportation cost is about 200 yuan per ton.

In addition to these, the financial cost of cotton enterprises increased generally in 2015, mainly due to the compression of loans issued by the Agricultural Development Bank, and the acquisition of the 400 type enterprises, except some from the Agricultural Development Bank, all came from private financing.

Take the Shandong enterprise as an example.

The average interest rate was 8%. In 2015, it raised 6 million 900 thousand yuan, and the interest expense was 46 thousand yuan a month. In the past three months, it paid 138 thousand yuan.

As a result, the lint cost of the enterprise in 2015 is 13386 yuan / ton. If interest cost is added, the general 3128B grade lint spot cost will be 13400-13450 yuan / ton.

How about the sales? In 2015, cotton prices in the mainland went up and down in three stages.

第一個階段是9月底至10月中旬，黃河流域3128B級皮棉現貨價格大致在13800-14000元/噸，一般都由廠家提貨，棉企可省去運輸費用，但是這個時候內地的400型企業多數還沒有開秤，即使開秤者也是無棉可售;第二個階段是10月下旬至11月下旬，這一個月棉價振蕩下行，山東、河北一帶3128B級皮棉主流價格在13300-13400元/噸，較年度初期已經下跌了500-600元/噸，此時新棉陸續上市，而棉企則因為成本倒掛惜售情緒較重，大多數企業又錯失了這第二次機會;第三個階段是12月份，當月3128B級皮棉現貨跌至12900-13000元/噸，之后一直在這個價位附近微幅波動，應該說，這個時候棉價已跌到地上了，可棉企在這個時候反倒急著賣棉了。

Is it profitable for cotton enterprises?

A person in charge of a cotton enterprise in Hebei said that they always insisted on selling with production. By the end of September, they had made a few gains when weighing scales. As time went on, the cost was gradually hanging upside down and began to fall into a loss situation.

Some enterprises started to weigh late, and the spot price of a scale has been 13300-13400 yuan / ton, and then the price is falling all the way.

The most difficult ones are those who are reluctant to sell, have no definite sale, and have large inventories.

Take the Shandong cotton enterprise, which is introduced by the reporter of the China cotton net, for example, the pre sale cotton has already lost about 200000 yuan.

At present, enterprises have more than 270 tons of cotton lint, and 3128B grade lint costs 13450 yuan / ton. At current prices, they will lose 450 yuan / ton, and the more they sell the interest cost, the greater the loss will be.

Hebei and Shandong are the main cotton producing provinces in the the Yellow River River Basin. Cotton production accounts for more than 80% of the output of the the Yellow River basin.

About 50% of output.

It is understood that in 2015 Hebei, Shandong and other 400 enterprises 80% loss, 10% in the profit and loss line, 10% small profits.

In the 80% loss making enterprises, most of them lost 10-20 yuan, and more than 30-40 yuan accounted for 20% of the enterprises. There were also factories losing more than 1 million yuan.

Finally, the reporter has to talk about the situation in Hubei.

Hubei is the main cotton producing province in the Yangtze River Basin. In 2015, the color level of cotton was particularly good. Most of the 3128B grade and C grade were, and it was said that there was a lack of good cotton in 2015. What about the profits of cotton enterprises in Hubei province? It is reported that cotton in Hubei province is very popular in 2015, and most of the local cotton has been sold out at present, and some enterprises have stopped work as early as new year's day.

The quality of early seed cotton is better, the purchase price is about 3 yuan / jin (39-40%), and the tail price is 2.8-2.95 yuan / Jin, the cost of cottonseed price is 1.05 yuan / Jin, the cost is basically 12200-12800 yuan / ton.

The price of the 3128 grade lint is 12700-13000 yuan / ton (net weight, self mention, the same below), and the 1227 level is about 12500 yuan / ton.

Cotton quality is better, and other cotton producing areas can be seen.