Anhui: Cotton Yarn Market Declines Again, Enterprise Holiday Time Increases

On July 30, a small cotton mill in Anhui Province just finished its 20 day holiday. It is understood that this is the fourth holiday since the factory resumed work and production this year, and the holiday time has gradually extended from the initial five days to 20 days.

Increasing the number of holidays and extending the holiday time is also a helpless move for many cotton mills this year. Before the global new crown pneumonia epidemic situation has not fundamentally improved and under the influence of Sino US trade friction, cotton mills this year have a difficult operation, not only a small number of orders, but also a meager profit. Up to now, through the investigation of a number of small and medium-sized cotton mills in Anhui Province, the current off-season characteristics are more obvious, and the business of cotton spinning enterprises is bleak. The most prominent performance is: first, the sales price of cotton yarn has fallen, and the profit space has been gradually compressed in the case of high cotton price, and many cotton spinning factories have fallen into deficit operation; second, it is more and more difficult for cotton yarn to get goods, and the inventory of cotton yarn is gradually increasing, and the financial pressure of enterprises is highlighted.

According to the person in charge of a 100000 spindle rotor spinning cotton mill, although they have already adjusted the cotton yarn product structure according to the market demand, they no longer produce 40 high count yarn and above, but produce 32 low count yarn with good market. However, after entering the off-season in July, the "selling price" and "sales volume" of cotton yarn did not significantly improve. At present, the sales price of 32 rotor spun pure cotton yarn is 17000 yuan / ton, and 200-300 yuan / ton has been reduced in one month. The person in charge said that because the current enterprise capital is not sufficient, raw material procurement mainly from the market to buy low-cost Indian cotton and American cotton to ensure the normal operation of the enterprise. However, the recent sales of low count yarn have also copied the situation of difficult delivery of high count yarn in the past. Daily cotton yarn sales only account for 2 / 3 of the production volume, and there is still 1 / 3 inventory, which puts more and more pressure on enterprises.

In the face of the current predicament, cotton mills take the measures of "reducing cost and reducing production capacity" to maintain the normal operation of enterprises. Cost reduction is to take appropriate ways to purchase raw cotton to reduce the cost of purchasing cotton, to ensure no loss or less loss. To reduce production capacity is to control the production capacity by increasing the number of holidays and extending the vacation time while continuing to implement the measures of reducing shifts.