Why Is It So Hard For Cotton Companies To Lose Money?

In 2015, cotton enterprises shouted the most, that is, it is hard to lose money.

Visiting, the bosses said that 2015 is the most difficult year for cotton enterprises. In previous years, it is difficult to have a chance. The price of lint cotton can drop to a certain extent and even stop.

For example, in 2014, the early period of enterprise harvest of seed cotton because the price is high, most of the loss, but in the middle and late prices stable, most enterprises can turn to profit, cotton acquisition work is normal.

However, since the acquisition of new cotton in 2015, the sale price of lint cotton has dropped again and again. The 3128B grade cotton price has dropped to the current 12500 yuan / ton from the original 13300 yuan / ton, which has dropped by nearly 1000 yuan, while the seed cotton purchase price has dropped by only 0.1 yuan / Jin, and the selling price of the seed cotton has been cut down after calculating the cost of the seed cotton processed into the cotton seed after the cost is acquired, so it has to lose money to sell. The good operation is also a guarantee for the purchase, and the cotton enterprise is crying hard for it.

Recently, the sale of lint cotton is not only low in price and poor in sales, but few people are asking for it, which makes cotton enterprises' inventory of cotton linen increase and capital turnover difficult, so we have to slow down the progress of the purchase. We expect that the sales market will not get better before the Spring Festival.

Cotton enterprises are closely linked with textile enterprises. To understand why cotton enterprises are so difficult, we need to understand the downstream.

The situation.

It is understood that the current situation of textile enterprises is also very grim. Before the new year's day, the purchase and sale of grey fabrics basically stagnate.

Terminal textiles

It is also very difficult for enterprises to go inventory. Many enterprises have ceased production, concentrating their efforts on clearing inventory and collecting money. The yarn and cloth marketing of textile enterprises will gradually become stagnant.

Most textile enterprises said that the yarn is still able to carry goods, but acceptance and debt is the mainstream, grey cloth basically can not move, some enterprises produced by single production said frankly, after the new year's day, the existing orders will gradually end, new orders are not yet available, and the textile enterprises generally believe that the Spring Festival holiday will be ahead.

Cotton enterprises do not sell cotton, and prices drop all the time because the yarn and cloth sales of textile enterprises do not move, and the two factors affect each other.

Over the past few years, we have encountered very difficult market conditions, but we have overcome the difficulties. Can we survive this year's business environment?