Four Major Problems Must Be Closely Followed By Cotton Enterprises Concerned With Falling Quality Of Operation

Since the beginning of this year, the quality of the textile industry has declined, and the textile production and operation are very difficult. The main factors are three: first, cost, two is the market, and the three is capital.

Namely, the rising cost of raw materials and labor costs; the international economic situation is still low; the global economy has not yet gone out of the shadow of the financial crisis, the international market is weak, and the domestic market is hard to start; "tight monetary policy" has broken the whole industry chain, and economic and trade activities are almost paralyzed by financial difficulties.

The shrinkage of textile enterprises has directly affected this year's production.

Textile enterprises should pay close attention to the following issues.

First, the trend of cotton prices this year.

It is estimated that there will be a minimum price of 19800 yuan / ton for convoy, and cotton enterprises will actively store cotton. Therefore, the downward trend of cotton prices may not be large.

Two, there are some concerns about the purchase and storage of new cotton.

First of all, for the management level, collecting and storing is a good thing with three arrows. It protects the interests of cotton farmers, stabilise the cotton market and increase the national reserves.

Secondly, it is clear that the purchase and storage conditions should be enabled in the plan, but it is not clear what conditions should be stopped.

Textile enterprises may not be able to use cheap cotton, and can only use more than 19800 yuan per ton cotton.

Thirdly, according to the lessons learned in 2008 and 2009, the textile enterprises should pay close attention to the progress of cotton purchasing and storage.

Three, we must promptly purchase and strive for cotton import quotas.

Qualified enterprises can purchase cotton properly in the near future, because the market is favorable.

At the same time, we should strive for cotton import quotas as much as possible. Because of the global cotton harvest, most of the international cotton prices will be in China.