Research and Analysis of High Cost Situation of Textile Enterprises in 2012

Faced with the heavy siege of international cheap cotton, the country’s policy of temporary storage and storage is also stretched. Recently, the reporter found that the difference between domestic and foreign cotton prices is about 4,500 yuan / ton, the highest spread is to reach 5,600 yuan / ton. The high costs have once again made the textile companies that have been weak.

“Cotton accounts for 60% of the cost of textile companies. The high cotton price gap between domestic and foreign countries has seriously weakened the export advantages of China's textile enterprises.” Liu Cheng, cotton economic analyst at China Merchants Productivity Promotion Center interviewed by China Business Daily If it is stated.

High spreads have led to imported cotton

According to the May monthly situation report just released by the China Cotton Association, the import cotton after deducting the sliding tax was 15366 yuan/ton, which was nearly 4,000 yuan/ton lower than the China cotton price index of 328 cotton 19086 yuan/ton in the same period. . It is worth noting that this price difference continued to expand in June.

Many insiders, including Liu Cheng, have such feelings: Under normal circumstances, imported cotton is 1,000 yuan cheaper than domestic cotton, which is the norm. Even though the 2009 financial crisis has seen an abnormal inversion of the price of the two products, it is 4,000 yuan. The price difference to 5,000 yuan has never been seen in the past.

Why is such a large price difference?

Wang Qiang, an analyst at First Textile Network, told China Business Daily that there are two main factors: The global financial crisis intensifies the global financial crisis and even a serious imbalance between supply and demand. Commodities including cotton have the widest range after the financial crisis. The price of the US cotton fell by nearly 50% compared with the same period of last year. From September last year to March this year, the Chinese government’s collection and storage of stocks not only stabilized domestic cotton prices, but also partially stabilized international cotton prices.

This temporary purchasing and storage policy finally collected and stored 3.125 million tons of lint at a price of 19,800 yuan/ton, which accounted for half of domestic production, making the price of domestic standard cotton stable from 19,300 yuan/ton to 19,600 between the end of last year and March this year. Yuan / ton.

In comparison, the US cotton price is 14,416 yuan/ton, the Australian cotton is 15,148 yuan/ton, the Uzbekistan cotton is 15,280 yuan/ton, and the Indian cotton is 13,810 yuan/ton. “Individual enterprises are trapped in the domestic high prices of cotton, low quality, high freight before they are more imported cotton.” In Liu Cheng’s view, domestic companies importing international cotton is a last resort.

According to the 2012 temporary storage plan that was just released, from September to March next year, the State Reserve will open storage at a price of 20,400 yuan/ton, and the storage and storage price will increase by 600 yuan/ton from the previous year. The market estimates that the amount of storage and storage in the new year may be about 2 million tons.

According to analysts' understanding, it is impossible to sell and collect reserves for the purpose of stabilizing cotton prices and stabilizing the income of cotton farmers, and the only way is to increase imports.

"The phenomenon of cotton oversea ports is now occurring because the import quota is limited and cotton has already landed. Even some companies are buying quotas at high prices, causing the quota quota to reach 3,500 yuan/ton." Liu Cheng said bluntly. It can be called "crazy." As to whether the "trading quota" is legal, Liu Cheng admitted that at least at this stage the government is tacit approval.

Or forced to die part of the small and medium-sized textile enterprises

The largest contributor is destined to the downstream textile industry.

According to the monthly report of China Cotton Textile Enterprise Production Analysis released by the China Cotton Association in May, the domestic textile raw material market continued to decline in May, and the decline was larger than that in April. The number of enterprise purchases fell by 9.8% from the previous month, and the amount of raw materials purchased by enterprises However, due to the increase in price advantage of imported cotton, the quantity of purchased cotton actually increased significantly, which was a 42.5% increase from the previous month. This was the conclusion made by the China Cotton Association after investigating 90 backbone cotton textile enterprises in 17 provinces.

According to Liu Cheng, for textile companies, the fluctuation of raw material prices has a significant impact on production. Along with the reduction in the amount of raw material purchases, the main economic indicators and profits of textile companies continue to decline, and the phenomenon of suspension of production and production restriction by small and medium-sized enterprises is becoming more serious.

Throughout the first half of the year, China's textile industry showed a declining trend. According to relevant data, Dezhou, Shandong Province, is one of the key cotton producing regions in the country, and its cotton spinning capacity is 1/7 in Shandong Province and 1/20 in China.

Ma Junkai, deputy secretary-general of the Cotton Association of Dezhou, Shandong, did not make any remarks when interviewed by reporters: All cotton textile companies that use cotton as raw materials are in a state of loss. At the same time, mixed textile companies using cotton and chemical fiber are between micro-profits and micro profits. The new type of fiber companies, which do not use all the chemical fiber used in cotton, are profitable, but their profitability has fallen sharply from previous years.

In addition, the China Business Daily reporter learned from the China Textile Import and Export Chamber of Commerce that due to the impact of domestic and foreign cotton spreads, the country’s cotton yarn exports fell the most in the country from January to May this year, with exports falling by 22.5% year-on-year, and export of cotton yarn companies was greatly affected.

Can not be ignored is that the increase in domestic and foreign cotton spreads, will cause China's textile enterprises to decline in export advantages, and seriously weakened the international competitiveness of China's textile industry. Countries in Southeast Asia have gradually emerged from their advantages in production and prices, and China’s textile industry will face a decline in international market share.

“Now this time is a blank period and an interim period. In September, cotton is basically mature. When domestic cotton is listed, domestic prices may be low.” Based on this, the industry’s biggest appeal is to open up cotton import quotas and increase imports. In order to keep the price difference flat, on the other hand, it is necessary to increase the transportation of local high-quality cotton.

Founder ** cotton researcher Cai Pingxia said that from the current data, the 2011/12 cotton country issued a total of about 2.5 million tons of cotton import quotas. "But before the market really improves, the new cotton year, the country will still control the amount of quota issued, which will support the domestic cotton prices to a certain extent. Therefore, the possibility of reissuing quotas later is unlikely."