The Cotton Textile Market A Year Ago Was Indeed A Bit Of A Mess.

The upstream cotton market is turbulent, the downstream cotton yarn market orders are stagnant and cost upside down, and near the end of the year, the capital problem will also be a big mountain on the top of the enterprise, which is really hard to handle.

In this market, many small textile enterprises have begun to stop production, slightly larger spinning enterprises also selectively shut down some production lines, after all, will soon celebrate the new year, everyone wants to go home safely for a good year.

Recently, I understand

Part of the cotton textile enterprises in the Yangtze River Basin show a sense of helplessness and pressure. Especially near the end of the year, the year-end effect appears, and enterprises are at a loss as to where to go.

First, the government punches the haze and affects the fish.

In December 22nd, the head of a 100 thousand spinning enterprise in Shijiazhuang, Hebei said that the factory had reduced 20 thousand ingots since the beginning of this month. As at December 19th, the government asked them to reduce 20 thousand spindles and reduce production capacity by 40% in order to cope with the first level response of the current pollution early warning.

As a result of the near future

Serious haze pollution occurred in most areas. The government launched a heavy blow. The factory limited production 20-40%, small factory scattered, chaotic, poor unconditional shutdown, bringing great pressure to the enterprise's financial and order.

A Baoding in December 22nd

At present, there is still a larger order in the hands of the company, which is unable to complete the business on time.

Second, at the end of the year, capital problems were highlighted, and enterprises were stretched to the limit.

There are mainly several aspects of recent funding problems:

1, payment is hard to come back.

In recent years, cotton yarn sold by enterprises in the early stage has been recovered from downstream manufacturers, but most of the answers are "wait and so on".

Even a grey fabric manufacturer directly says "no money". If you want to get the money back, you can only pay for the cloth or towel and fabric. Some manufacturers are forced to agree to take back some of the debts, but the losses are great.

2, workers demand payment of wages.

It is understood that in the second half of this year, many textile factories credit workers' wages, and some enterprises are unable to settle their wages for 2-3 months.

A factory in Binzhou, Shandong, said that the workers still owed workers one and a half months' wages. They went around and borrowed two days. But I do not know where to borrow money next month.

3, raw materials can not afford to buy.

Because this year's upstream manufacturers and Cotton Traders require the cash settlement of textile enterprises, they can only take delivery of goods, which baffle many textile enterprises.

Due to the shortage of funds, the raw materials of enterprises are stretched, and some production lines must be kept short.

On the whole, this wave market is on the one hand, due to the recent pressure on environmental protection, on the other hand, in the futures market, the flow of funds will be more frequent years ago, which will easily cause a short period of chaos to the raw material market.

Related links:

China's cotton imports decreased by 42% compared with the same period last year. In order to get rid of inventory as soon as possible, China will continue to control cotton imports in 2017.

In this regard, the Bank of Commonwealth of Australia said that China's control of cotton imports may not last too long.

From March to August next year, China will restart the storage of cotton, but high quality cotton reserves may have been sold in large quantities.

With the longer storage period, the quality grade of cotton reserves will be a problem and its structure needs to be optimized.

If the number of high-grade cotton reserves is reduced, then China can only look for suitable cotton from abroad.

Recently, international cotton prices have stagnated.

The Bank of Commonwealth of Australia believes that investors will look for opportunities to reduce their record long positions.

In recent days, bulls have begun to liquidate their profits before the end of the year-end holidays. If the late long positions continue to liquidate, they may trigger deep callbacks.

At present, ICE futures have a large number of bulls. Once they are evacuated, the price of cotton will be suppressed, but it should be a short-term behavior.

For more information, please pay attention to the world clothing shoes and hats net report.