The continuously shrinking monetary and financial policies are exerting great influence on all walks of life, including the cotton textile industry, which looks very far away from finance.
The author recently discovered in Texas, an important gathering place of the cotton textile industry, that the cotton textile industry is falling into a dilemma of the whole industry chain: the price of cotton has continued to fall and it has been gradually approaching the cost of cotton; spinning companies have purchased stocks at high levels to make them breathe. However, the price upside down caused more than 60% of the spinning companies in Texas to fall into production restrictions; the domestic and international consumer market is sluggish, competition in Southeast Asia's low-cost countries intensifies, and the situation in the weaving and garment industry is equally not optimistic. The situation is also widespread.
Cotton price "roller coaster"
The price of cotton has fluctuated over the years, but it was particularly fierce in 2011, and a “roller coasterâ€-like market has emerged since September 2010.
Ma Junkai, deputy secretary-general of the Dezhou Cotton Association, reported that the price of cotton has risen since the beginning of 2010. By September, with the introduction of new cotton into the market, under the impetus of a large gap in domestic cotton, the price of cotton entered an upsurge, and local cotton in Texas increased from 18,000 yuan/ton to 32,000 yuan/ton. After the Spring Festival in 2011, the cotton price was still above 30,000 yuan/ton, but from the end of February and early March, the cotton price suddenly began to drop sharply, and it had fallen to 24,000 yuan/ton by the end of April, and has not yet rebounded effectively. Prices are low.
The cotton price has been ups and downs, which has caused farmers to use their brains.
In previous years, the basic acquisition of cotton was completed at the end of April, but the situation was different in 2011. “The cotton farmer has a very strong wait-and-see attitude. In the process of rising prices, farmers expect higher prices; as the prices fall, farmers feel that they are so high in the previous period and are now selling off,†Ma Junkai said. Therefore, although it is late in June, about 20% of the cotton farmers in the Texas area are still not sold.
The sharp drop in cotton prices put cotton farmers under great pressure. “As a result of cotton production cuts, the cost of planting cotton in 2010 was higher. Compared with grain production, the replacement cost of per kilogram of seed cotton in Texas was between 4.4 yuan and 4.5 yuan, and now the price of seed cotton is between 4.7 yuan/kg and 4.8 yuan/ Jin, is already approaching the cost price of cotton," Ma Junkai said.
The yarn enterprises are under pressure
The price of cotton has been tumbled and the days of spinning companies are even more saddened. They even believe that the price of cotton has not fallen enough or is too high.
Xiajin Runtong Textile Co., Ltd. (hereinafter referred to as “Runtong Textileâ€) is a medium and small-sized spinning enterprise with 20,000 spindle production lines and employs more than 300 people. The general manager of the company, Tian Lianchen, reported to the author that the company's product grade was relatively high and that cotton needed to be imported from the United States. At present, the United States imports cotton to Hong Kong at a price of 2.6 yuan per ton, and the cost of spinning is 37,000 yuan per ton, but the price of the products it produces is only around 34,000 yuan per ton, and it costs 3,000 yuan per ton. Therefore, starting from last month, Runtong Textile has completely shut down production to reduce the amount of losses. But even so, there is still some sales pressure. Because the company had more than two months of inventory before the production stopped, there are still more than a month of inventory products.
The situation of Runtong Textile is not an isolated phenomenon. “Now more than 80% of the spinning companies in the Xiajin region have stopped production and production, and more than 60% of spinning companies in the Texas region have stopped production and production,†Tian Lienchen said.
The situation of Xiajin Yuanfeng Textile Co., Ltd. provided evidence for Tian Lianchen's argument. The company is also a small and medium-sized textile company. General Manager Zhao Zhongfeng told the reporter that the company currently reserves 50% of its production capacity. The current production and sales situation is a loss of about 1,500 yuan per ton of production, and the amount of losses per ton in the previous period is even greater, at 7,000 yuan. Yuan around. “However, the company does not want to completely stop work because it is not good to hire workers after it stops. However, if this situation continues for a long time, the company will have to consider a comprehensive shutdown.â€
Surprisingly, at the time when cotton prices have skyrocketed in 2010, various spinning companies have earned enough money. Ma Junkai told the editorial reporter that “2010 was a good market for spinning companies that hadn't been for many years. Each company has made a lot of money.†Tian Lienchen also admitted that “from January to October 2010, the company’s profitability is considerable.†2011 The cost of cotton has dropped. Why is it even more difficult for spinners?
One of the reasons for Ma Junkai's analysis is that spinning companies must stock a portion of cotton in order to maintain normal operation, which is usually two months. In the cycle of rising cotton prices, even if they are not produced, the increase in the price of cotton stocks can generate considerable profits. However, during the down cycle, the cost of cotton for the company's early inventory was high and became a burden. On the other hand, the huge drop in product prices is also an important reason. "Downstream weaving and clothing companies are pushing down the price. One of our company's flagship products is the price after the Spring Festival is still 41,000 yuan / ton, the current price is 31,000 yuan / ton, a drop of 25% in a few months." Zhao Zhongfeng said .
The author recently discovered in Texas, an important gathering place of the cotton textile industry, that the cotton textile industry is falling into a dilemma of the whole industry chain: the price of cotton has continued to fall and it has been gradually approaching the cost of cotton; spinning companies have purchased stocks at high levels to make them breathe. However, the price upside down caused more than 60% of the spinning companies in Texas to fall into production restrictions; the domestic and international consumer market is sluggish, competition in Southeast Asia's low-cost countries intensifies, and the situation in the weaving and garment industry is equally not optimistic. The situation is also widespread.
Cotton price "roller coaster"
The price of cotton has fluctuated over the years, but it was particularly fierce in 2011, and a “roller coasterâ€-like market has emerged since September 2010.
Ma Junkai, deputy secretary-general of the Dezhou Cotton Association, reported that the price of cotton has risen since the beginning of 2010. By September, with the introduction of new cotton into the market, under the impetus of a large gap in domestic cotton, the price of cotton entered an upsurge, and local cotton in Texas increased from 18,000 yuan/ton to 32,000 yuan/ton. After the Spring Festival in 2011, the cotton price was still above 30,000 yuan/ton, but from the end of February and early March, the cotton price suddenly began to drop sharply, and it had fallen to 24,000 yuan/ton by the end of April, and has not yet rebounded effectively. Prices are low.
The cotton price has been ups and downs, which has caused farmers to use their brains.
In previous years, the basic acquisition of cotton was completed at the end of April, but the situation was different in 2011. “The cotton farmer has a very strong wait-and-see attitude. In the process of rising prices, farmers expect higher prices; as the prices fall, farmers feel that they are so high in the previous period and are now selling off,†Ma Junkai said. Therefore, although it is late in June, about 20% of the cotton farmers in the Texas area are still not sold.
The sharp drop in cotton prices put cotton farmers under great pressure. “As a result of cotton production cuts, the cost of planting cotton in 2010 was higher. Compared with grain production, the replacement cost of per kilogram of seed cotton in Texas was between 4.4 yuan and 4.5 yuan, and now the price of seed cotton is between 4.7 yuan/kg and 4.8 yuan/ Jin, is already approaching the cost price of cotton," Ma Junkai said.
The yarn enterprises are under pressure
The price of cotton has been tumbled and the days of spinning companies are even more saddened. They even believe that the price of cotton has not fallen enough or is too high.
Xiajin Runtong Textile Co., Ltd. (hereinafter referred to as “Runtong Textileâ€) is a medium and small-sized spinning enterprise with 20,000 spindle production lines and employs more than 300 people. The general manager of the company, Tian Lianchen, reported to the author that the company's product grade was relatively high and that cotton needed to be imported from the United States. At present, the United States imports cotton to Hong Kong at a price of 2.6 yuan per ton, and the cost of spinning is 37,000 yuan per ton, but the price of the products it produces is only around 34,000 yuan per ton, and it costs 3,000 yuan per ton. Therefore, starting from last month, Runtong Textile has completely shut down production to reduce the amount of losses. But even so, there is still some sales pressure. Because the company had more than two months of inventory before the production stopped, there are still more than a month of inventory products.
The situation of Runtong Textile is not an isolated phenomenon. “Now more than 80% of the spinning companies in the Xiajin region have stopped production and production, and more than 60% of spinning companies in the Texas region have stopped production and production,†Tian Lienchen said.
The situation of Xiajin Yuanfeng Textile Co., Ltd. provided evidence for Tian Lianchen's argument. The company is also a small and medium-sized textile company. General Manager Zhao Zhongfeng told the reporter that the company currently reserves 50% of its production capacity. The current production and sales situation is a loss of about 1,500 yuan per ton of production, and the amount of losses per ton in the previous period is even greater, at 7,000 yuan. Yuan around. “However, the company does not want to completely stop work because it is not good to hire workers after it stops. However, if this situation continues for a long time, the company will have to consider a comprehensive shutdown.â€
Surprisingly, at the time when cotton prices have skyrocketed in 2010, various spinning companies have earned enough money. Ma Junkai told the editorial reporter that “2010 was a good market for spinning companies that hadn't been for many years. Each company has made a lot of money.†Tian Lienchen also admitted that “from January to October 2010, the company’s profitability is considerable.†2011 The cost of cotton has dropped. Why is it even more difficult for spinners?
One of the reasons for Ma Junkai's analysis is that spinning companies must stock a portion of cotton in order to maintain normal operation, which is usually two months. In the cycle of rising cotton prices, even if they are not produced, the increase in the price of cotton stocks can generate considerable profits. However, during the down cycle, the cost of cotton for the company's early inventory was high and became a burden. On the other hand, the huge drop in product prices is also an important reason. "Downstream weaving and clothing companies are pushing down the price. One of our company's flagship products is the price after the Spring Festival is still 41,000 yuan / ton, the current price is 31,000 yuan / ton, a drop of 25% in a few months." Zhao Zhongfeng said .
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