"Cotton Mad" Blow Down Small And Medium-Sized Textile Enterprises

Since April of this year,

Prices continue to fall, many in China.

Enterprises do not dare to purchase large quantities of cotton, and the stock of cotton is not high. Many textile enterprises usually stock in two or three months.

The continuous rise of cotton prices has brought huge cost pressure to the textile enterprises, resulting in a loss.

Reporter: This is the song Lou Town, Xiajin County, Shandong province. The town has a total population of 30 thousand people, with an area of 40 thousand mu of arable land.

Around the cotton industry more than 10 years ago, more than 30 textile companies in the textile industry have been shutting down in recent years. Today, we can see that there are only 17 textile enterprises in the town. The textile enterprise behind me is built in a village, and we can see it next to the villagers' home.

Today we can see that the gate has been locked, the degree of rust on the iron gate and the growth of weeds is estimated to have been closed for some time.

Villager of song Lou Town, Xiajin County, Shandong Province: is this factory closed? It has been closed for some time.

The reporter came to a family in Xiajin, Shandong.

Tian Jiunian, the general manager of the factory, said he was spinning the two generation. His father started spinning business more than 20 years ago. Now the factory has been assigned to him. After 80, he feels that the traditional textile industry is hard to do.

In 2014, the state abolished the temporary purchasing and storage policy, and cotton prices began to fall all the way. In March this year, it fell to more than 9000 yuan per ton, but from April, it began to rise to about 16 thousand yuan. The sharp rise in the V shape is a fatal blow for textile enterprises.

General manager of Shandong Xiajin run textile company, Tian Tian, nine years: if we use the current cotton price to produce, we are basically losing money now.

Reporter: how much is the loss? About one thousand to two thousand loss per ton.

Reporter: the more we lose, the more we lose.

Yes.

Reporter: according to the reason cotton has gone up, can cotton yarn follow up? But the price of cotton yarn has not risen yet, that is, the price of cotton has not been recognized in the lower reaches, that is, the raw materials have been raised, but the yarn price has not been mentioned.

Raw material cotton rose five thousand or six thousand yuan in three months, while the yarn spun up only a few hundred yuan, and the loss of production became more and more, which made spinning enterprises unable to afford it.

Tian nine years, taking into account the machine can not stop, employees can not speak, still cling to their teeth.

He did not know where the ceiling of the cotton rose was, and he said that it would not be possible to stick to it for a long time.

While another large cotton mill also has some stock, but after two months running out, if we buy Cotton in the near future, we will start losing money.

{page_break}

Tian Wenhua, chairman of Shandong Xiajin Tianrun Textile Co., Ltd.: the floating of cotton directly affects our operation and production efficiency.

Reporter: the cost of cotton accounts for how much of your whole product.

Tian Wenhua, chairman of Shandong Xiajin Tianrun Textile Co., Ltd.: 80%, in addition to cotton, electricity charges are artificially accounted for relatively large. Now cotton prices come in, and then spin yarn plus workers' wages, electricity, taxes, and certain management costs. According to the current spinning price, it must be 10000, at least more than 1000 yuan per ton.