The Trade War Causes The Cotton Market Turbulence Analysis Cotton Textile Enterprise Present Situation And Countermeasure

The Sino US tariff war started, except for futures prices.

Business executives said that the shock of cotton trade in the Sino US trade war was first the futures market, and then the first line spinning enterprises. The concrete performance was that the quotations of cotton and cotton yarn had dropped sharply, the volume of the textile products had declined conservatively, the stock of finished products of textile enterprises increased, and the textile market was complicated and confusing.

In the middle of this month, the two or three grade lint quotes were affected by zhengmian futures quotations, and the price fell by more than 500 yuan / ton. In addition to the direct impact of the decline in futures, the initiative to resist the market shock caused by the Sino US trade war is also the main reason.

The head of Jiangsu's first line textile enterprises believes that the United States is a major exporter of Chinese textile products. The Levy of tariffs is a new cost burden for textile export enterprises. The market and enterprises can only reduce the prices of raw materials and products by reducing the burden and reduce costs.

However, enterprises believe that the production and operation of the textile industry will not decline, raw material supply has sufficient reserves of cotton and strong market price adjustment function, enterprise production and operation is guaranteed. As for the operation of a piece, enterprises must adhere to the principle of market operation and price adjustment, and the increase of tariff may cause some core interests reduction or production capacity reduction, but there will be no disruptive events in the overall trend.

It is reported that the market has not yet been settled because of market fluctuations, prices have not stopped, some textile enterprises slow down the product sales process and bulk purchase of raw materials, so some enterprises yarn stocks increased significantly, some 20 thousand spindles of Jiangsu Yancheng yarn stock reached 100 tons or more, the difference is a month's output, and in the previous month's survey, the yarn is usually 10-15 days of production stock, the current stock rise is obviously affected by the decline in yarn quotes.

On the 16 day, the price of pure white cotton yarn in Yancheng, Jiangsu was quoted at 25500 yuan / ton, 300-500 yuan / ton lower than before the week.

In view of the change in cotton market, Jiangsu Yancheng textile enterprises said they would pay more attention to the market of flower, yarn and cloth in southern China.

However, the market reaction is not fierce, because the risk volatility from the market has been given many enterprises to experience, the fluctuation of prices and interest of Feng Qian is a natural phenomenon of market operation.

Fortunately, the stable operation in recent years has given the most enterprises an improvement in their vitality and efficiency, and the ability of enterprises to face complex and changeable market has been enhanced.

At present, enterprises are more focused on the high concern of the market and the regulation and management of production and operation. They should seize the market's "nose" and take countermeasures at any time, so as to minimize the risk and maximize the benefits.

Then, how will the enterprises respond to the downward trend of cotton prices?

Jiangsu's Northern Jiangsu Province, with small and medium-sized cotton textile owners, generally has 2-8 yuan of spindles retained by the textile companies in the past few years, and 100-800 employees, most of whom are less than 90s of pure cotton and 45 million yuan -1.8 billion a year.

When the turbulence of cotton market appeared in the middle of May, some unforeseen enterprises were worried about their worries. Most of them were worried about supernormal stock, because the change of cotton market was mainly reflected in the price of cotton yarn, and the different selling price would inevitably form a business deficit.

A 60 thousand spinning enterprise in Dafeng, Yancheng, said that the stock of cotton that was not included in the road up to May 15th was more than 600 tons, equivalent to the amount of cotton used by the company for two months, and its average price was about 15500 yuan / ton.

According to the recent trend of cotton and yarn market, enterprises will face new pressure of cost increase.

In the low efficiency of textile industry today, small and medium-sized textile enterprises absorb heavy burden.

In terms of finished goods inventory, most enterprises draw lessons from the storm of cotton market, and have gone through the low and low inventory route for many years. However, the inventory of nearly 200 tons of blended yarn still makes Yancheng City's Dafeng district's only 20 thousand spinning boss worry.

According to the normal driving rate and daily output, the 200 ton blended yarn is the output of the enterprise in the past two months. Compared with the three and fifty tons of product inventory of the surrounding enterprises, the inventory of this enterprise is obviously larger, and facing the abrupt cotton market now, it is very difficult to achieve smooth sales.

The change of cotton market has made many enterprises cautious.

First of all, we should pay attention to the market situation and judge the future trend of the market.

Enterprises believe that a high degree of concern about policies and market conditions is the premise to ensure that they do not lose the general direction.

Cotton is an important material for national economy and people's livelihood. Although production and supply and marketing have been liberalized, there are still some macro control policies and measures. From the perspective of ensuring people's livelihood and stable development, both the policy and the market will arrange safeguards for important materials. Therefore, the industry should promptly study and analyze and use valuable information resources to guide production and operation.

Secondly, we must have a precise grasp of the trend of the upper and lower lines.

Among them, the reserve cotton market is the guarantee for the important production materials of textile enterprises, and is also the "vane" of domestic and international cotton prices. A large number of enterprises rely heavily on this. Therefore, daily competition and its market analysis and evaluation are important strategic resources for enterprises to face the market.

We should also have a comprehensive understanding of the trend of the downstream market.

Several owners of textile enterprises in Yancheng, Jiangsu, plan to form an alliance to engage in a "weaving enterprise" business, focusing on understanding the individual needs of raw materials and the requirements of technology, fancy and matching.

The second is to study the new measures of internal management and expand the management level of internal consumption and expand the new domestic market.

Adhere to the principle of small inventory of raw materials and finished products, and increase the proportion of order production. In addition to the continuous supply and demand of regular domestic customers, they usually do not blindly press goods. At the same time, firm and strict quality assurance measures are unwavering. We must closely control the quality lifeline, rely on good quality to stabilize customers, rely on market opportunities and overcome difficulties, stabilize or reduce the benefits.