Hebei Textile Enterprises Are Trapped In Cotton Price Roller Coaster Sequelae

Since last October,

Textile enterprise procurement prudence

"When cotton prices are high, we can't afford to eat." cotton prices are low, and we dare not eat.

The market is buying or selling, but now the textile enterprises are having a hard time.

Hebei Ning Textile Group textile branch manager, Rong Guo admitted.

Starting from October 2010, cotton prices soared and reached the highest price in March this year, with a price of more than 30000 yuan per ton.

However, since April, the "high fever" cotton price has been "cooling down" rapidly, and the situation of rapid decline has made many textile enterprises "very hurt".

"Usually the factory has to store 1 months of cotton. Last year, the storage of cotton in the warehouse was even enough for 3 months.

But at the moment, cotton prices are so low that they can't afford to wait for spun yarn.

Duan Rongguo said, "now, even 10 days of cotton in the factory do not dare to hoard, and how much to buy."

Cotton prices slide, resulting in

It is understood that at the beginning of this year, the average 40 yarn could be sold to nearly 50000 yuan / ton, and now the selling price is only about 30000 yuan / ton, and the price has shrunk by nearly 40%.

Because cotton spinning production is cyclical, in order to reduce the market risk brought about by the decline in cotton prices, many cotton spinning enterprises have taken a cautious and conservative attitude when receiving large bills and long bills, and because the market expectations are not optimistic, enterprises are more careful when buying cotton.

Production and sales rates generally declined.

The price of finished products has dropped greatly, and under the influence of the international macro situation, the purchasing power of the downstream market is not strong, and there is no follow-up support. Textile enterprises have increased pressure. Even large textile enterprises, the production and sales rate also has a downward trend.

"In the first 9 months of this year, our production and sales rate was basically 100%. Due to the coldness of the downstream market, the production and sales rate has dropped to about 95% in recent months."

A large textile enterprise in Shijiazhuang said.

Statistics show that last year, the production and sales rate of textile enterprises above Designated Size in Hebei province was over 90%, but in the first 9 months of this year, it has dropped to 80%~85%, resulting in a backlog of cotton yarn and cotton cloth. In September, the textile export volume of the province showed a decreasing trend.

The price of cotton and cotton yarn is "diving", and "high and low output" make many enterprises fall into losses.

Duan Rongguo said, at present, every enterprise produces 1 tons of cotton yarn to pay 1000 yuan ~2000 yuan, but in order to stabilize the old customers, enterprises can only afford to lose money.

The survey shows that as the downstream demand is weak, the textile mill maintains a low inventory of lint cotton. The start-up volume is 70%~80%, the spot sale of lint is not smooth, the procurement of enterprises is cautious, and both buyers and sellers maintain short orders, giving priority to wait-and-see.

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Speed up pformation and resist risks

"The enterprise owns the chain of textile, printing and dyeing, garment processing, and the production is relatively stable.

However, in the face of the low price of domestic and foreign cotton market, though the internal impact of some cotton price changes has been digested, enterprises still feel a lot of pressure.

For small factories with relatively small production, the days are even more sad.

Duan Rongguo said.

According to the Hebei investigation team's survey of the price of the rural market in 12 counties and cities in the whole province, cotton picking in Hebei's main cotton producing area was completed in November. As cotton enterprises were affected by the sharp fluctuations in the prices of last year, they were cautious in entering the market, and cotton prices were expected to continue to consolidate at low levels.

It is understood that shortening the production cycle has become the main means for many small and medium textile enterprises to avoid market risks. For some large enterprises, accelerating the adjustment of their own industrial structure has become the main strategy to deal with the fluctuation of cotton prices.

"The textile industry's per capita wage in 2010 was 20100 yuan, nearly doubled compared with 2005, coupled with factors such as energy and pportation prices. Textile industry's cost upgrading trend is very difficult to change. Only by accelerating pformation can enterprises respond to market changes."

Sun Weilun, President of Hebei textile and garment industry association, said that during the pformation period, textile enterprises need to strengthen brand awareness, increase investment in technological pformation, vigorously promote independent innovation, increase the added value of products, improve the profit margins and product grades of unit products, and reduce their dependence on cotton, only in this way can they have a way out.