As one of the traditional leading industries in Liaocheng, the cotton textile industry is experiencing a series of effects brought about by the shock of cotton prices. Linqing is honored as "China's cotton textile batik city" and "Shandong Province textile and garment industry base". It has 85 textile enterprises above designated size, more than 40,000 employees, 15,000 looms and 2 million spindles. From January to October, a total of 85 textile enterprises above designated size in Linqing City achieved 10.055 billion yuan in main business income, an increase of 30.06% year-on-year. How does a cotton textile industry of this size respond to the shock of cotton prices? This went to an interview with a cotton spinning company.
Spinning and weaving, mixed with mixed, “Since September, cotton rose strongly, and the cotton price rose by 100% in two months, but the trend of cotton increased volatility recently. Future cotton hit a high of 33,720 yuan/ton in the current round on the 10th of this month. The sharp fall, 11th and 12th consecutive two-day limit, the rising pattern has been completely destroyed, and the spot market has been fully adjusted.†November 23, deputy general manager of Linqing Jinyuan Tianze Co., Ltd. Yang Jigang said.
For spinning companies, the situation in the first half of the year was very good. Han Weidong, director of the trade union of Linqing Textile Industry Office, specifically analyzed the impact of cotton price fluctuations within the industry. “The same period in 2009 was 14,000 yuan/ton, and in 2010 it was more than doubled from 2009. In general, spinning industry situation Fortunately, they usually have 2 months of inventory, after the cotton price rises, the price of cotton yarn goes up, and the profits of the company increase a lot.Some companies report that they earned the profits of the past 3 years in the first half of 2010. This is not seen in 10 years. A good situation.†But Han Weidong stressed that the development of the situation in the second half is also difficult to measure.
Due to the plunge in cotton spot prices and prices in the past week, the cotton yarn and weaving industries have a certain time to reflect on raw material prices. Linqing Textile Enterprises has a phenomenon of “high-priced cotton, low-price cotton yarnâ€, that is, customers only consider the current low prices. Cotton yarn produced by cotton is difficult to sell for cotton yarns produced by enterprises that purchase high-priced cotton. Because the impact of rising raw material prices cannot be well transmitted to downstream industries such as weaving, batik, and garments, the rise in costs is absorbed in the intermediate links, and the profits of downstream companies are squeezed. The current increase in cotton textile products is "a cost-driven increase," rather than a "demand-led rise."
Inside and outside, the demolition of Dongbu West Xinya, general manager of Qi Qi said: "In 2009 we used the cotton into the 2.95-3.15 yuan / m price, now 6.1 yuan / m, the company is facing great cost pressures. Since the second half The price of our export products has risen by 20%, but the cost has risen by 70%. Now that the export product price is 50% higher than the same period of 2009, foreign customers do not accept it and demand that we lower the quotation according to the current cotton price.†This phenomenon also causes cotton. The dilemma faced by textile export companies: exports or domestic sales?
Li Hongyi, chief of the Foreign Trade Management Section of the Liaocheng Business Bureau, said: “The dramatic increase in cotton prices in the second half of the year has a very significant impact on cotton textile companies in our city. During the Canton Fair, cotton prices may soar by more than 1,000 yuan per ton per day, and cotton textile export enterprises In the dilemma, if the cost of raw materials is too high, if the companies continue to export, they will lose money if they do not raise the price of foreign orders. If they do not export, they will lose customers in the international market. Now some cotton textile export enterprises are mostly sold through domestic sales. Profits make up for deficits in foreign trade."
It is understood that the most mentioned at the beginning of the year was the exchange rate of *** against the U.S. dollar, as well as the shortage of labor, but the drastic fluctuations in raw material prices have now become the most important factor affecting the export of the cotton textile industry. Many companies have called for the government to introduce policies that mediate the market, stabilize prices, help companies, and severely curb hoarding.
Entering and retreating, we firmly selected China as the largest consumer of cotton, and the cotton self-sufficiency rate was 60%. According to the data from the Liaocheng Cotton Association, the cotton plantation in Liaocheng once reached 8 million mu and is now only 2 million mu. Taking Guanzhai Township in Guan County as an example, the township has 56,000 mu of arable land, which is suitable for planting cotton. In 2010, only 4,000 acres were planted. This situation has brought great pressure to enterprises. Linqing Cotton Spinning Enterprises is evading risks through new products, “going global†and “bank-enterprise joint†methods.
Li Yinxi, general manager of Linqing Risheng Textile Co., Ltd. introduced that the current price of cotton dropped by 4,000 yuan/ton, and the price of cotton yarn decreased by 2000-3,000 yuan/ton. Fortunately, the market demand was strong and the profit did not decrease much, but the profit rate decreased. It is understood that Risheng Textile is preparing to launch a children's wear production line; Jingpeng Textile has already set up a plant in Wusu, Xinjiang, and strives to develop the scale of 50,000 spindles within two years; Jinyuan Tianze avoids risks through the “bank-enterprise joint†approach.
"A bank uses its financial advantage to purchase 1,400 tons of cotton, and it is stored in our company's warehouse. How much is my company buying from the bank's reserve at the market price? This way, banks can reduce the amount of capital they occupy by charging a certain fee. Product structure: From natural fiber such as cotton to chemical fiber, the price of chemical fiber is relatively stable. New products require new equipment and new markets. At present, our operating rate is 100%.†Yang Jigang said, “Currently, the spot price of cotton and the decline in the price of Enterprises and the expectation that the price of raw materials will continue to fall, but I think that the cotton yarn market will be large and the reduction will be very small. This will be more cautious for the company's actions, with small batch orders and short-term orders, with 'fast forward and fast exit' as Strategies and do their best to avoid risks."
Spinning and weaving, mixed with mixed, “Since September, cotton rose strongly, and the cotton price rose by 100% in two months, but the trend of cotton increased volatility recently. Future cotton hit a high of 33,720 yuan/ton in the current round on the 10th of this month. The sharp fall, 11th and 12th consecutive two-day limit, the rising pattern has been completely destroyed, and the spot market has been fully adjusted.†November 23, deputy general manager of Linqing Jinyuan Tianze Co., Ltd. Yang Jigang said.
For spinning companies, the situation in the first half of the year was very good. Han Weidong, director of the trade union of Linqing Textile Industry Office, specifically analyzed the impact of cotton price fluctuations within the industry. “The same period in 2009 was 14,000 yuan/ton, and in 2010 it was more than doubled from 2009. In general, spinning industry situation Fortunately, they usually have 2 months of inventory, after the cotton price rises, the price of cotton yarn goes up, and the profits of the company increase a lot.Some companies report that they earned the profits of the past 3 years in the first half of 2010. This is not seen in 10 years. A good situation.†But Han Weidong stressed that the development of the situation in the second half is also difficult to measure.
Due to the plunge in cotton spot prices and prices in the past week, the cotton yarn and weaving industries have a certain time to reflect on raw material prices. Linqing Textile Enterprises has a phenomenon of “high-priced cotton, low-price cotton yarnâ€, that is, customers only consider the current low prices. Cotton yarn produced by cotton is difficult to sell for cotton yarns produced by enterprises that purchase high-priced cotton. Because the impact of rising raw material prices cannot be well transmitted to downstream industries such as weaving, batik, and garments, the rise in costs is absorbed in the intermediate links, and the profits of downstream companies are squeezed. The current increase in cotton textile products is "a cost-driven increase," rather than a "demand-led rise."
Inside and outside, the demolition of Dongbu West Xinya, general manager of Qi Qi said: "In 2009 we used the cotton into the 2.95-3.15 yuan / m price, now 6.1 yuan / m, the company is facing great cost pressures. Since the second half The price of our export products has risen by 20%, but the cost has risen by 70%. Now that the export product price is 50% higher than the same period of 2009, foreign customers do not accept it and demand that we lower the quotation according to the current cotton price.†This phenomenon also causes cotton. The dilemma faced by textile export companies: exports or domestic sales?
Li Hongyi, chief of the Foreign Trade Management Section of the Liaocheng Business Bureau, said: “The dramatic increase in cotton prices in the second half of the year has a very significant impact on cotton textile companies in our city. During the Canton Fair, cotton prices may soar by more than 1,000 yuan per ton per day, and cotton textile export enterprises In the dilemma, if the cost of raw materials is too high, if the companies continue to export, they will lose money if they do not raise the price of foreign orders. If they do not export, they will lose customers in the international market. Now some cotton textile export enterprises are mostly sold through domestic sales. Profits make up for deficits in foreign trade."
It is understood that the most mentioned at the beginning of the year was the exchange rate of *** against the U.S. dollar, as well as the shortage of labor, but the drastic fluctuations in raw material prices have now become the most important factor affecting the export of the cotton textile industry. Many companies have called for the government to introduce policies that mediate the market, stabilize prices, help companies, and severely curb hoarding.
Entering and retreating, we firmly selected China as the largest consumer of cotton, and the cotton self-sufficiency rate was 60%. According to the data from the Liaocheng Cotton Association, the cotton plantation in Liaocheng once reached 8 million mu and is now only 2 million mu. Taking Guanzhai Township in Guan County as an example, the township has 56,000 mu of arable land, which is suitable for planting cotton. In 2010, only 4,000 acres were planted. This situation has brought great pressure to enterprises. Linqing Cotton Spinning Enterprises is evading risks through new products, “going global†and “bank-enterprise joint†methods.
Li Yinxi, general manager of Linqing Risheng Textile Co., Ltd. introduced that the current price of cotton dropped by 4,000 yuan/ton, and the price of cotton yarn decreased by 2000-3,000 yuan/ton. Fortunately, the market demand was strong and the profit did not decrease much, but the profit rate decreased. It is understood that Risheng Textile is preparing to launch a children's wear production line; Jingpeng Textile has already set up a plant in Wusu, Xinjiang, and strives to develop the scale of 50,000 spindles within two years; Jinyuan Tianze avoids risks through the “bank-enterprise joint†approach.
"A bank uses its financial advantage to purchase 1,400 tons of cotton, and it is stored in our company's warehouse. How much is my company buying from the bank's reserve at the market price? This way, banks can reduce the amount of capital they occupy by charging a certain fee. Product structure: From natural fiber such as cotton to chemical fiber, the price of chemical fiber is relatively stable. New products require new equipment and new markets. At present, our operating rate is 100%.†Yang Jigang said, “Currently, the spot price of cotton and the decline in the price of Enterprises and the expectation that the price of raw materials will continue to fall, but I think that the cotton yarn market will be large and the reduction will be very small. This will be more cautious for the company's actions, with small batch orders and short-term orders, with 'fast forward and fast exit' as Strategies and do their best to avoid risks."
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