China Cotton Bank Association Went To Hubei For Investigation
Recently, the China Cotton Textile Industry Association and the research team of the China Cotton Association went to Hubei Province for research and visited several cotton textile enterprises, focusing on cotton raw materials, production and management. The main points are as follows:
On the whole, the continuous sharp fall of cotton prices and the escalation of Sino US trade frictions in the past few years have greatly reduced the vitality of Hubei textile enterprises. After the first call between China and the US dollar, the market began to stabilize, but the signs of recovery were not prominent. Controlling business risks and stabilizing employees are the main tasks of textile enterprises at this stage. Hubei was the main cotton producing area in China in previous years, Therefore, the textile enterprises in Hubei continue to use pure cotton as the main raw material, and the products are mostly medium and low count yarns, with a large cotton consumption and power consumption. Individual enterprises try to use colored viscose colored spinning.
From the visit, the enterprise reflected common old problems as well as new problems. The common problems reflected mainly came from the pressure on the cost side. The pressure on raw materials, electricity, labor, and financial interest was large. The continuous decline of cotton prices led to the passive purchase and production arrangements of the enterprise. The electricity price of 0.68~0.73 yuan/kWh is almost the highest in China. In terms of employment, it is also common that recruitment is difficult and expensive. Some powerful enterprises reduce employment and labor intensity by replacing new equipment and upgrading technology. The aging of personnel structure also forces enterprises to constantly improve the environment to attract more young people to work happily. Some new factories have built the factory into a garden factory. In terms of financial expenses, enterprises reflect that cotton textile is a capital intensive industry, which has the attributes of large investment, long cycle and low return, but also has the characteristics of promoting people's livelihood, stabilizing employment and low pollution. Banks' loans to cotton textile enterprises are relatively tight, and some enterprises that cannot obtain loans are often overwhelmed by interest expenses. During this visit, some enterprises also reported new problems, mainly because some Xinjiang cotton used is packed with closed plastic cloth, and Xinjiang cotton is often stored in the open air. In some areas, continuous rainfall causes rain water to penetrate the package and immerse into the cotton, which cannot evaporate, causing cotton rot, Cotton textile enterprises will not only increase the picking process, but also lose about 5%~10% of rotten cotton. Therefore, enterprises suggest Xinjiang cotton processing enterprises to use breathable cotton cloth packaging to reduce the risk of rain erosion.
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