Enterprise Hoarding Cotton Loss Heavy But Helpless Production

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Mr. Chen, the Minister of raw materials purchasing of the company, told reporters later: "our company has not been in the near future.

Mr. Chen told reporters: "cotton prices fell a lot.

Wang Xinyue, manager of Hebei Xingyu textile material Co., Ltd., also confirmed that many textile companies are indeed losing money. "Think about it. When you buy it, cotton is 28000 yuan ~30000 yuan / ton, and now it drops to 19000 yuan / ton.

Spinning enterprises have no choice but to continue production

Because many small and medium-sized enterprises stop production and stop production because of their losses, how about the textile enterprises that continue to support production?

Mr. Chen seems to have given the answer: "do not start, the textile mill's machinery and plant costs still go out.

If the shutdown time is short, the equipment is fine.

If the work is stopped for one or two months and the weather is humid, the equipment will rust.

In addition, the shutdown time is long, recruitment is also difficult.

"Cotton prices in the first half of this year were at a high level. Cotton rose almost every day in February and March, and businesses worried about soaring cotton prices, hoarding a lot of cotton and spending a lot of money.

Now the cotton price has dropped, and the inventory has not been digested, and the capital turnover is not good enough, so the small enterprises will stop production and stop production.

However, those who do not have too much stock, and the spinning companies that sell with them are making money and not losing money.

Li Liheng, a business analyst.

Eastern Beijing

Lu Ning, head of Shandong Yali Ya fashion group, told reporters: "customer orders should be divided into two categories: one is the provision of customers themselves.

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On the one hand, "the price of cotton has fallen, and the purchase of raw materials has indeed saved costs. However, clothing companies have not taken the lead in profits, and many of them have been consumed in circulation.

For example, the domestic and foreign market hot money participates in the clothing industry, the clothing price is scrambled up, takes the opportunity to profit, we also did not earn how many.

Lu Ning said.

On the other hand, in the second half of last year and the first half of this year, the high priced cotton that was hoarded by textile enterprises is also partly pferred to the fabric purchased by garment enterprises. "Textile enterprises should digest the stock, and the fabric price we buy is also determined according to the cotton price at high time, otherwise the textile enterprises will lose more."

Lu Ningru said.

Summer clothes are expected to be reduced next year

Talk about whether the downstream clothing may fall back, Ma Wenfeng laughed, "lower clothing prices up easy, down can be difficult, this is called the ratchet effect.

The price of clothing is similar to that of the real estate market, and it is unlikely to drop too much.

Ma Wenfeng further analyzed that clothing prices would not drop quickly as cotton prices fell all the way down. On the one hand, there was a long conduction belt between cotton and clothing, which took months. On the other hand, cotton prices were still much higher compared with the same period last year, and the rise in clothing prices is not difficult to understand, considering the rise in other costs such as labor costs, rent and other costs.

Chen Changsong, a senior business analyst, told reporters positively that "the clothing industry will not reduce prices".

Chen Changsong further explained that in general, clothing production cycle is at least three quarters to a year.

Therefore, this year's autumn clothing was probably produced after last autumn, and winter clothing corresponded. At that time, domestic cotton price was the most expensive period.

Therefore, the rising price of raw materials at that time is bound to drive up autumn clothing this year.

That is to say, if the market is right, the summer and autumn clothing next year will probably be reduced.

At the same time, Chen Changsong also held an upset against the clothing industry: "the price of clothing that consumers see is terminal, but the terminal is only a terminal, but the most basic clothing manufacturers are afraid to mention too high prices."

Of course, that kind of big clothing enterprises will surely make more and more money, because their product prices have been rising.

SMEs are most affected now. "

And Lu Ning also confirmed Chen Changsong's view that "clothing prices may continue until the end of this year and next year, next summer clothing prices may fall."

"The decline in cotton prices will have some impact on our company, but we are running a multi species, multi fiber spun yarn, so the drop in cotton prices will not hurt us much."

A female staff member of Zhongyuan Textile Office of Zhongyuan group, Dezhou, said to our reporter.

Mr. Chen, Minister of raw materials purchasing department of the company, told reporters later: "our company has not purchased cotton recently, but as far as I know, now we have three grade cotton at 20500 yuan ~21000 yuan / ton, four grade cotton in 19000 yuan / ton, and five cotton in Xinjiang is about 19800 yuan / ton."

Three grade cotton has not fallen below the 19800 yuan / ton bottom price.

Mr. Chen told reporters: "cotton prices fell, many spinning mills are now losing money, making little profit."

Wang Xinyue, manager of Hebei Xingyu textile material Co., Ltd., also testified that many textile companies are indeed losing money. "Think about it. When you buy it, the cotton is 28000 yuan ~30000 yuan / ton, and now it falls to 19000 yuan / ton. Only the raw materials that are stored up will lose eight thousand or nine thousand per ton. Cotton raw materials are in a loss, while human capital is rising, about 500 yuan ~600 yuan / month, and other costs are also rising."

Many small and medium-sized textile enterprises have stopped work. Yin Xiuhuai, deputy director of Longyao Agricultural Bureau of Hebei, said: "some of our local textile mills have been closed down, and there are still some failures."

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Spinning enterprises have no choice but to continue production

Because many small and medium-sized enterprises stop production and stop production because of their losses, how about the textile enterprises that continue to support production?

Mr. Chen seems to have given the answer: "do not start, the textile mill's machinery and plant costs still go out.

If the shutdown time is short, the equipment is fine.

If the work is stopped for one or two months and the weather is humid, the equipment will rust.

In addition, the shutdown time is long, recruitment is also difficult.

"Cotton prices in the first half of this year were at a high level. Cotton rose almost every day in February and March, and businesses worried about soaring cotton prices, hoarding a lot of cotton and spending a lot of money.

Now the cotton price has dropped, and the inventory has not been digested, and the capital turnover is not good enough, so the small enterprises will stop production and stop production.

However, those who do not have too much stock, and the spinning companies that sell with them are making money and not losing money.

Li Liheng, a business analyst.

Ma Wenfeng, Beijing Oriental Agribusiness Consulting Co., Ltd. provided a set of data on the monthly profit rate of cotton textile enterprises: "in the 2~3 months of this year, when the cotton price is running high, the profit margin of the textile enterprises is relatively low, 5%~7%, while in July, those who hoarded cotton at high cotton prices were at a loss, but the profit rate of the textile enterprises with the purchase and sale was relatively high, reaching about 8%."

Shandong Lu Yali clothing group chief company Lu Ning told reporters: "customer orders should be divided into two kinds: one is that the customers themselves provide fabric, then it is bound to rise in price, the increase is not sure; the other is that our company provides cloth processing and production, because processing fees are also rising, generally speaking, a garment has risen by 10%~15%."

The cotton growers have little profit, and the textile enterprises complain that the days are bad. Can the clothing enterprises be able to be independent from the original raw material cotton to clothing?

On the one hand, "cotton prices are falling, and raw material procurement is indeed."