Cotton Resources Continue To Decline, Some Cotton Enterprises Intend To Withdraw From The Market.

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201312/23/20131223041339_sj.JPG "/" < < > >

< p > Xiajin County of Shandong province is both a large cotton growing county and a textile land. It is called "silver Xiajin".

According to the local a href= "http://sjfzxm.com/news/index_s.asp" > cotton grower < /a >, the highest cotton planting area in the county has reached 650 thousand mu in the 830 thousand mu arable land, and only 30 acres of cotton planting area remained in 2013. Xiajin county is the epitome of the cotton market in the Yellow River basin in recent years.

Zhao Zhuang village, Hejian City, Hebei Province, is also an important cotton processing and production base. It has more than 150 small and large cotton ginning plants, and only 400 enterprises have more than 20. However, it is difficult to see cotton cars this year.

On the one hand, seed cotton can not be collected. In previous years, a large scale enterprise could produce 7000-8000 tons of lint cotton in a cotton season. In 2012, most of the enterprises made 2000-3000 tons of lint. In 2013, more than 1500 tons of enterprises were already rare. Now it is difficult to find cotton fields in Shandong and Hebei provinces. On the other hand, the processing profit is greatly reduced.

The head of a ginning factory in Hebei said that in 2011, the state started collecting and storing the business, and the profits of the storage enterprises were all above 2000 yuan / ton. In 2012, it dropped to 1000 yuan / ton, and in 2013, it dropped to 400-500 yuan / ton.

< /p >

< p > "next year, a href=" http://sjfzxm.com/news/index_s.asp "> cotton < /a > may be less.

A cotton trader said that in 2013, most areas of Hebei and Shandong suffered floods, and the quality of cotton decreased. The quality of the storage and storage enterprises was strictly controlled. The cotton seed cotton sale rate was only about 50%, while the rest of the cotton was bought by 200 type enterprises. At present, about 40% of the cotton is still in the cotton farmers' home. Several cotton growers who are in contact with their businesses have said that they no longer grow cotton in 2014.

The head of a large quality cotton seed company in Hejian City said that there were few distributors of seeds this year. It is expected that the cotton planting area will continue to shrink next spring.

< /p >

< p > 2014, the state may no longer have large-scale storage and purchase, plus < a href= "http://sjfzxm.com/news/index_s.asp" > the third Plenary Session of the 18th CPC Central Committee > /a > emphasize "let the market play a decisive role in the allocation of resources", and the market variables are increasing. The 400 type enterprises have no bottom.

Xiajin, Jining and other places cotton enterprises responsible person said that these two years of business difficulties, many enterprises on the verge of collapse, if the state does not store up, the 200 type enterprises are likely to comeback, this may be the last straw to overcome the camel.

Some enterprises say that whether to continue to purchase next year is still unknown. Some enterprises even give up and change to other businesses. Market participants estimate that the cotton business in the the Yellow River River Basin in 2014 will be reduced by more than 40%.

< /p >