Cotton Textile Enterprises In The Downstream Are In Trouble.

The high price of cotton has caused the downstream cotton spinning and weaving enterprises to get into trouble.

As a national cotton textile industrial base, Henan has a large demand for cotton and cotton yarn, which is second only to Shandong in the whole country.

"Cotton textile enterprises can not cope with soaring cotton prices.

Buy or not buy cotton, price will fall later, cotton yarn?

Can we go up? If we can't go up, but the stock of cotton yarn has been formed, what should we do? This is the main problem facing the textile enterprises at present.

Li Jifeng told reporters.

Our reporter was informed that the cost pressure of cotton prices rose sharply down to the yarn, cloth and clothing pmission, but compared with the substantial increase in the paction price of Zheng cotton and reserve cotton, the actual price of cotton yarn increased by only 300~800 yuan per ton. Some enterprises spun C40S and below the count cotton yarn, not only did not profit every ton but had a loss of 500~1000 yuan, while the downstream intermediaries and weaving mills were not strong in digestion capacity. The enterprises reflected that the growth of medium and low count yarn and conventional yarn grew rapidly.

The head of a textile factory said that before this, the enterprise was producing an order for 1 million meters of cloth from Nantong, Jiangsu, which was priced at 9.8 yuan / meter, and the raw cotton was 12500 yuan per ton, earning 0.3 yuan and earning about 300 thousand yuan per meter.

But during this period, the price of raw cotton rose rapidly, and they also had to deliver the goods on time. They lost 600 thousand to 700 thousand yuan in a single case.

In this regard, the company has convened an emergency meeting.

Up 1100 yuan / ton.

At present, with regard to old orders, we actively discuss with our clients to see if we can raise prices appropriately, and execute new orders according to the price of new cotton yarns, but it is very difficult for customers to accept them.

Reporters noted that the reduction of production and production is the main means to ease pressure on textile enterprises.

When the cotton yarn produced by cotton is purchased at high price, there is no downstream market and there is a loss.

Of course, in the field of cotton spinning, proper adjustment of product structure is also a feasible strategy to make the company's predicament better.

In early July of this year, the Henan Textile Industry Association organized 34 textile and cotton enterprises in Henan province to convene a textile entrepreneur meeting to discuss the cotton problem currently most concerned by enterprises.

The participants of the 34 textile enterprises agreed to increase the amount of reserve cotton, speed up the progress of the storage, and stabilize the production cost of enterprises.

Henan

Xuchang, Henan Yufeng textile, Henan Ping cotton textile, Yongan Yongan textile and other famous cotton textile enterprises all participated in the meeting.

Our reporter learned that domestic cotton supply is insufficient, spot prices are rising rapidly, and cotton inspection is slow. This is the most concentrated and prominent issue of Henan's textile and cotton enterprises.

In response, they appealed to the relevant departments of the state, including increasing the amount of reserve cotton, storing cotton auction without normalization, speeding up the progress of cotton warehousing, and finding out enterprises that maliciously hyped cotton reserves.

In addition to Henan, nearly 150 cotton textile enterprises in Hubei, Hunan, Shandong, Hebei, Zhejiang, Fujian, Jiangsu, Guangdong and so on have recently reflected the problems of cotton storage in the form of telephone and joint letter to the Chinese cotton textile industry association.

In this regard, the China Cotton Textile Industry Association organized a forum on cotton textile enterprises in July 21st to discuss the issue of cotton reserves put forward by enterprises.

However, there is no definite plan on how to effectively solve the problem of high cotton prices.

If the supply and demand level is rational or relatively stable, reasonable fluctuations in the cotton market can also be understood.

But if it is irrational, be careful.

But in the long run, cotton prices must be callback.

Because the law of value still plays a role. The price deviates from the value for too long. It is only a matter of the length of time. It is also related to the policy orientation of our country in the process of cotton regulation. "

Li Jifeng told reporters about the trend of cotton prices in the future.