Xingtai: Cotton Cost Upside Down, Cotton Line Loss

The recent cotton spinning Market in Xingtai, Hebei has the following characteristics:

1. the cost of cotton resources is seriously upside down.

On the 29 day, the local three class real estate cotton mention price was 14500 yuan / ton (gross weight, including tax), four class 14100 yuan / ton (same as above), but it was flat compared with yesterday, but it has fallen 800 yuan / ton compared with the middle of this month. At present, the cost of cotton resources is upside down 800-1000 yuan / ton.

2. the local 400 type ginning factory is full of losses.

According to the briefing, there are not many cotton inventory resources in the local cotton ginning plant, and dozens of tons and few of them have no inventory.

On the other hand, cotton processing in 2018/19 is basically unprofitable.

Individual enterprises said that they lost hundreds of thousands of yuan in 2018, and individual factories lost millions of yuan.

As a result of losses, this year intends to continue to buy processing enterprises quantity tax reduction.

According to the data, there are more than 60 types of 400 cotton ginning plants in Xingtai. In 2018, there were about 20 participating in the acquisition, and this year or only about 10.

It is also known that Weixian County, Linxi and other counties have more developed cottonseed oil, and have hundreds of large and small scale oil refineries.

This year, a prominent feature is that the oil mill has been involved in cotton planting and cotton processing because of cotton seed resources. It has formed a new business mode of oil extraction factory + farmer household, oil extraction plant + ginning factory + textile mill, which has opened up a new way for the development of local cotton industry.