Cotton Textile Industry'S Pain: Cotton Prices Seem To Be Too High.

Cotton prices continue to rise slightly, and this change is not entirely formed by the role of the market, more often influenced by man-made rules in the industrial end, cotton textile enterprises in China are particularly affected by cotton.

Zhu Beina, President of the China Cotton Textile Industry Association, told reporters that the cotton textile enterprises had been suffering for four or five years. In the first half of this year, there was just a slight improvement.

After more than a month's time, textile enterprises generally lost their confidence in operation. The worst result seemed to be dimly visible: a large number of enterprises closed down and the workers lost their jobs.

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Although reserve cotton continued to come out, there was still a shortage of market supply.

As of July 20, 2016, the current round of cotton storage has been running for more than two months, totaling 1 million 423 thousand tons, with a daily average of 25 thousand tons, with a turnover rate of nearly 100%, less than the daily turnover of 30 thousand tons. Even so, cotton producers are still starving.

Due to low volume, traders are stockpiling goods, and new cotton is coming late, and cotton supply is still scarce.

There is a gap between the amount of daily cotton reserves and the real demand of textile enterprises.

Zhu Beina explained that the April 15th paper said that if the turnover rate of 30 thousand tons per day was 70%, the reserves would be increased to 50 thousand tons to ensure supply.

Textile enterprises use this to arrange production and purchase orders.

At present, cotton textile enterprises are worried that the new cotton market will go to the sky, and they want to take more cotton reserves in the storehouse, and the continuous rise of cotton has already pmitted the price to the cotton mill, but it is difficult to pmit to the cloth mill.

A difficult problem for textile entities is to compete with strong traders.

Li Dongmei is in a better position.

Her group is born in Shandong Jining wool textile mill, now has the world's largest cotton spinning, wool spinning to clothing brand two complete.

Industrial chain.

She said that, besides raw material procurement, we also do some trade for ourselves.

We buy both cotton yarn and cotton.

When we buy cotton yarns, whoever buys them at a lower price will sell them. When they sell cotton, who sells them at a higher price will be better.

Cotton prices soared, mostly

The loss is on the line.

As a response measure, spinning enterprises can do limited production or stop production and leave.

The head of a large enterprise complains that "the new start of good ending has been destroyed. It is not easy to insist on these years. Those small factories can stop for a short time, but we can not stop production and so on. The cotton price has been signed, and the price of cotton is still more than a month ago, but it will default if it fails to do so."

Large enterprises with social responsibilities do not dare to stop production. They insist on holding high prices to store cotton. The local government also does not allow these big enterprises to stop production.

In order to retain staff, some large enterprises take part in the start up work, partly stop production, workers take turns to work and take turns training.

Enterprises are suffering from the pressure of loss, and workers are sacrificing part of their income.

And small and medium-sized enterprises can only take the opportunity to close down or temporarily reduce production and limit production, and wait for temporary recruitment when the market is slowing down.

Zhu Beina said that we have about 2000000 people in the cotton textile industry for employment.

Many of them are weak in resisting risks. Basically, they are migrant workers who earn their wages and support their families.

Cotton prices continue to rise, downstream orders can not be supported, more and more textile companies are facing losses or shutdowns.

As the foreign yarn continues to impact on the Chinese market, some small and medium-sized spinning enterprises temporarily shut down, and the banks will immediately come to seal the accounts. In fact, they will declare the end of the business.

On the one hand, the market is over speculation, while the other is the panic of textile enterprises.

When cotton prices surged from the original 9500 to nearly 16000 in the near future and increased by nearly 70%, textile enterprises are eagerly looking forward to the introduction of the policy as soon as possible.

Many enterprises complain that textile enterprises generally believe that the current policy market has created such a situation.

The state reserve cotton has about 10000000 tons. The state subsidized huge amounts of money every year, and the quality of cotton has been reduced for one year by one year.

Now the demand for textile enterprises is large, but it can not be released. The response of the state regulation policy is too slow.

Textile enterprises, on the one hand, want to increase the amount of throwing and prolonging the throwing and storing time; on the other hand, they are worried about the change of policy, and the sharp fall in cotton prices has brought a more severe blow to the enterprises that have been storing up, and the result is that the whole textile industry chain is in a state of panic.

The rise in cotton prices is not caused by downstream demand. It is caused by the lack of timely regulation and control. It is the departments concerned have their own consideration or less consideration from the angle of the enterprises. Although the market parties have made suggestions to the relevant departments for the breakage of the cotton textile industry chain, but as of now, the policy has not yet moved, and the speculative momentum of the futures market has been increasing, which not only disturbs the market order, but also harms the interests of the textile entity enterprises.