The Cost Of Cotton Yarn In Xinjiang Has Multiple Advantages.

Xinjiang this year

Rapid expansion of production capacity has resulted in great productivity.

It is understood that by the end of 2014, the spinning capacity of Xinjiang was around 7 million spindles. After the commissioning in 2015, some media reported that the capacity of about 10000000 spindles will be formed by the end of the year.

Most of Xinjiang's cotton yarn needs in the mainland, so Xinjiang.

Will enter the mainland market in large numbers.

The cost of cotton yarn in Xinjiang has multiple advantages:

1) the cost advantage of cotton: Xinjiang spinning enterprises can get 800 yuan / ton subsidy than Xinjiang cotton, and Xinjiang cotton price is 300-500 yuan / ton cheaper than Xinjiang cotton in the mainland, so the cost of converting C32S Xinjiang is 1100-1300 yuan / ton lower than that of the mainland.

2) the advantage of electricity charges: the electricity price of Xinjiang textile enterprises is 0.35-0.38 yuan / degree, while most of the textile enterprises in the mainland use electricity charges at 0.6-1 yuan / degree, the average is also 0.7-0.8 yuan / degree, converting C32S electricity tariff, Xinjiang is 900-1000 yuan / ton less than the mainland cost.

3) freight subsidy: the allowance of Xinjiang cotton yarn pported to the mainland is 700-1000 yuan / ton, which basically can smooth the shipping cost of cotton yarn. Therefore, although Xinjiang is far away from the mainland, the spinning enterprises do not bear too many burdens on freight charges. On the contrary, individual regions can even achieve small profits.

4) tax subsidy: Xinjiang

After tax, it has an advantage over the mainland textile enterprises, which will reduce the cost of cotton yarn production to a certain extent.

Comprehensive calculation of Xinjiang spinning enterprises to produce C32S costs lower than the mainland 2500-3500 yuan / ton.

At the same price, downstream weaving factories prefer domestic cotton yarn, on the one hand, quality is stable. On the other hand, they are superior to imported cotton yarn in terms of accounts and claims.

It can be seen that imported cotton yarns are facing a new balance with domestic cotton yarn, while the imported cotton yarns are facing challenges. Meanwhile, the mainland textile enterprises are also facing certain challenges.

If there is no obvious improvement in downstream demand, Xinjiang's cotton yarn will occupy the share of the mainland's domestic cotton yarn market when it occupies the market share of the imported cotton yarn, which will lead to the reshuffle of the mainland industry.