High cotton price textile enterprises start to recuperate

It is understood that at the beginning of October this year, due to the arrival of a large number of Christmas orders from overseas and the return of some high-quality orders, the operating rate of textile mills in most parts of the country has picked up, and textile companies ushered in a brief spring. "But I didn't expect it to be short-lived," said Mr. Zhang. The market conditions for textiles are good and bad, but overall, the number of orders has become smaller and the business has become increasingly difficult. He has decided to switch to other businesses.

At present, there are not a few owners of textile companies who are reluctant to revive like Mr. Zhang. Chen Chaochao, head of another medium-sized textile company in Dongguan, said that the resurgence of companies in 2006 and 2007 is no longer the same, and that performance has fallen by nearly half and is on the verge of losses. No way, he is now only doing some textile machinery business.

“At present, orders for overseas winter clothing in the hands of many textile companies have been basically completed, but the orders for clothing in the spring and summer of 2013 have yet to come.” Zhu Jian, head of Foshan Chaoshun Textile Accessories Company, told reporters that during this period of time, they are still To withstand the very high daily operating costs, some small and medium-sized private textile companies can only choose to leave their employees on holiday and temporarily shut down.

The high cotton price is the heaviest mountain in the textile industry. It is understood that in order to maintain normal operations, some of the larger textile companies must guarantee a certain amount of production. Regardless of the price of cotton, they must carry out a certain amount of procurement.

“Our cotton plant has a cotton stock of 30,000 tons, and now more than 20,000 tons will be handed over to the State Reserve, and almost no cotton is sold to textile companies.” Hubei Yinyin Cotton Industry Guo Yinying said that due to the availability of tertiary cotton The price of 20,400 yuan/ton and 4th grade cotton 19,800 yuan/ton were handed over to the State Reserve. Of course, they would not sell cotton to textile companies at prices below this standard.

“The price of cotton at 20400 yuan/ton is really too high for a textile company to buy. In the absence of quotas, imported cotton has to pay 40% of the tariff and the cost is very high.” Guo Yinying said that Whether it is the purchase of domestic cotton or imported cotton, textile companies have to pay a very high cost, and companies can only obtain relatively cheap cotton by applying for storage and other methods.

It is understood that at present, a total of 859 textile enterprises have applied for throwing storage cotton. In the end, nearly half of the enterprises have obtained a total of 850,000 tons of low-cost cotton. "This time, all the stocks dumped are cotton, and the quality is not very good, but even then, this batch of cotton should be quickly exhausted." Guo Yinying said that the only remaining low-cost cotton is the ** market. About 60,000 tons of registered warehouse receipts. “The price of this part of the warehouse receipts is about 18800-18900 yuan / ton, and the textile companies that do hedging will fully enjoy the benefits brought by the market."

"Accepted by the reserve price, the spot price of cotton has also increased. At present, many textile companies believe that this price is high, the outlook for the cotton price is not optimistic." Evergreen Institute of cotton researcher Xu Aixia said Zheng cotton 1301 contract It is approaching delivery. Under the support of the reserve price, there is little room for cotton prices to go down. Zheng cotton 1305 contract as a far-month contract, the price down space is larger.