Cotton Price Fluctuates Too Much And Contuses Cotton Spinning Industry

"The three phase of Canton Fair (mainly for textile and footwear exhibits), mainly in Europe and the United States, and rarely order. Our list is mainly small, short and fast. In November 24th, Jiang Xian, general manager of Sichuan cotton and flax company, held in Chengdu, the 2011 country. cotton The working forum said, "customers will not buy or sell, they will have a strong wait-and-see mood and want to see what the market will be like."

In February this year, cotton price reached the peak of 35000 yuan / ton, and now it has dropped to 19000 yuan / ton. "Roller coaster" market let Sichuan cotton spinning Enterprises are "very hurt".

Will it be again after the collapse? Skyrocketing ?

Cotton textile enterprises Underemployment

Zhou Qiang, deputy general manager of Deyang run Bao dyeing and Printing Co., Ltd., Sichuan, has been busy flying at home and abroad recently. "No matter the domestic market, or the foreign markets such as Turkey, Russia, Southeast Asia, and so on, they are not very prosperous. Consumers used to buy one by one, and now they buy it one by one." Zhou Qiang said.

Run Bao printing and dyeing has an annual production capacity of 20 million meters of printed cloth. Now, with the decline of order 30%-40%, the start has been greatly affected. Zhou Qiang estimated that this year's production will drop by at least 20%.

This is only a microcosm of the province's textile industry. Sichuan cotton textile enterprises are generally small in scale, with a total output of 30 thousand spindles -5 million spindles, few enterprises have more than 200 thousand spindles, and the risk resistance ability is small. "Most textile enterprises were making money last year, and most textile enterprises are losing money this year." Jiang Xian said.

Gao Fang, executive vice president of China Cotton Association, also pointed out that the textile industry is only a small boat in the global economy. "Cotton yarn fluctuates more than cotton prices".

Xu Xiao Chuan, deputy general manager of Sichuan Xinlixin import and export limited liability company, said that cotton prices skyrocketed and plummeted, and foreign trade exports were very poor. "Cotton prices are high and good orders, but bad quotations, low profit margins, low cotton prices, bad orders, large inventory."

Cotton price "roller coaster" has dramatically enlarged the cost control risk of enterprises. The price of production factors, including labor force, and the weakening or disappearance of many policy dividends, China's textile industry should not only deal with the "grab the bills" of some Southeast Asian countries, but also face shrinking orders caused by weak demand in Europe and the United States. This has become a "new wound" in the textile industry.

Temporary purchase and storage system to stabilize cotton prices

Reporters learned that, in 2011, attracted by the high cotton prices and high returns of the previous year, the enthusiasm of cotton growers has increased, and the area of cotton planting has increased nationwide. At present, the harvest of cotton has been a foregone conclusion. It is estimated that the annual output of cotton will be 7 million 280 thousand tons, an increase of 9.3% over the same period last year. Xinjiang's current cotton purchase volume has exceeded 3 million tons.

After the bumper harvest, cotton growers will be prepared to reduce cotton planting next year. It is very likely that cotton prices will go up again next year. How to stabilize cotton prices?

The national development and Reform Commission and other eight ministries and commissions have jointly issued the "cotton temporary storage and purchase plan" in 2011, and decided to implement the temporary cotton storage and storage system from 2011. The price announced in advance was 19 thousand and 800 yuan / ton, and the purchase and storage began in September 8th, and the total turnover reached 629910 tons as of November 18th.

"Cotton temporary purchase and storage policy not only plays a key role in stabilizing domestic cotton prices, but also in stabilizing international prices. We hope to further improve and perfect the long term mechanism in practice in the future." Gao Fang said.

The provincial Cotton Association and Cotton Corp leaders attending the symposium also proposed that on the one hand, we should establish a monitoring mechanism for agricultural products price changes, strengthen the initiative and effectiveness of state regulation, improve the linkage mechanism between price fluctuation and low income subsidies, and on the other hand, establish a large agricultural product planting plan to increase the possibility of basic balance between supply and demand.

The head of a large textile enterprise suggested that Xinjiang should be a few rare cotton suitable for high quality cotton cultivation in the world. The cost of cotton production is low and quality is good. The state should guide Xinjiang to develop this advantageous industry through policy support, strengthen Xinjiang's strategic position as a cotton supply area, and ensure the cotton planting area and supply in Xinjiang.

"I think 2012 is the middle of the whole textile industry in the middle of winter, and this cold winter will be very long." Zhou Qiang has made preparations for the winter. "What can be done now is to reduce the amount of work and start up, find new equipment to replace the old equipment, and further reduce the amount of labor."