No transaction of textile enterprises on the 10th day of cotton collection and storage still faces difficulties

The business club reported on September 28 that the industry’s temporary purchase and storage policy, which was considered to be the “lowest protection price” for cotton, had been implemented since September 8 and had not received any deals up to 10 days (excluding holidays) last Friday. ** Prices also fell sharply due to the turmoil in the international market.

The reporter recently visited some cotton producing areas and textile enterprises in Shandong. It is learned that cotton spinning enterprises are still facing greater pressure and the current situation of large-scale production suspension and production restriction has not been effectively alleviated. Experts believe that the policy of cotton collection and storage plays an important role in increasing the enthusiasm of cotton farmers and avoiding the risk of the textile industry. However, from the current point of view, it will take time for textile companies to emerge from the predicament.

National enthusiasm for collecting and storing cotton at the bottom of the nursery At the end of the harvest, although a lot of rain fell on the cotton, it affected the quality of some of the cotton. However, looking at the cotton that was almost mature, the gold farmers in Jinhaozhuang, Linqing City, Shandong Province, had a good mood. "This year's output should be no problem. It depends on quality and price." He said.

In order to prevent the occurrence of "cotton-swollen-wounding-peasants" caused by the harvest of cotton, this year China implemented a temporary cotton purchasing and storage policy. The standard lint price was set at 19,800 yuan / ton. Although there is still not a single transaction, the impact on the market has already appeared.

Ma Junkai, deputy secretary-general of the Dezhou Cotton Association, said that this year's purchase and storage policy is different from the past. The biggest feature is the first time that the company has opened an acquisition for the first time. This is very favorable for stabilizing the cotton price, and the cotton price will certainly not fall.

For this year's harvest, Jin Pingshun has high hopes. He said that the national minimum purchase price is a good thing for farmers. This year, 10 mu of cotton was planted. Calculated on the basis of 8 yuan per kilogram and 250 kilograms per mu, the gross income of one mu of land this year can reach more than 2,000 yuan, which is close to the income of grain. ”

Many farmers told reporters that cotton farming is laborious and laborious, and that the market performance in previous years was not good. Therefore, many cotton farmers abandoned the conversion of cotton into grain, and only those sandy and saline-alkali lands that are only suitable for cotton cultivation continue to grow cotton. This time, the country adopted a minimum purchase price to protect the farmers' hearts and eat a "centering pill."

The tension in raw materials in the cotton spinning industry has eased Dezhou City, Shandong Province is one of the key cotton producing areas in the country. In 2010, the area of ​​cotton planted in Dezhou was 1.55 million mu, a decrease of 32% compared with the previous year, but this trend has been reversed this year. Ma Junkai, deputy secretary-general of the Cotton Industry Association of Texas, said that the area of ​​cotton planting in Dezhou this year was about 1.6 million mu, an increase of 50,000 mu over the previous year, and that cotton growth was generally better than last year, and output is expected to increase.

The latest report of the China Cotton Association also shows that this year's national cotton production is expected to reach 7.48 million tons, an increase of 12.3% year-on-year. Gao Fang, executive vice president and secretary-general of the China Cotton Association, said recently that, from an international point of view, most of the major cotton-producing countries in 2011 will see a large increase in cotton production, and the demand will not change much. The relationship between supply and demand will be significantly improved and the supply will be slightly greater. Demand, cotton prices have some downward pressure.

Yu Jiping, director of the Plant Protection Station of the Xiajin County Agriculture Bureau in Dezhou City, said that last year, the price of cotton rose, and the price of seed cotton reached a maximum of nearly 15 yuan/kg, which drove the planting enthusiasm of cotton farmers. This year, the cotton planting area in Xiajin County is 544,800 mu, which is higher than last year. In the future, if the price can be stabilized, the planting area can be stabilized and the national cotton security will be guaranteed.

The increase in cotton production and the gradual stabilization of prices have eased the severe raw material and cost pressures of many cotton processing and textile companies. “In the past, cotton prices have caused dramatic ups and downs in industrial speculation and increased business risks. Orders are mostly based on short and large orders. Many risks will be circumvented when cotton prices stabilize,” Ma Junkai said.

Ren Quanyuan, general manager of Jinan Yuanshou Knitting Co., Ltd., said that the relative stability of recent cotton prices has driven the stability of cotton yarn prices. For the downstream knitting industry, this is conducive to establishing long-term cooperative relationships with customers. The increase in cotton production this year will create conditions for the supply of raw materials and stable prices.

It is still time for some cotton textile enterprises to step out of the difficulties of cotton spinning companies. Although the price of yarns has stabilized, the pattern of oversupply in the cotton yarn market has not fundamentally changed. The sales situation is still grim, and it will take time for textile companies to emerge from the predicament.

The reporter learned that as cotton prices stabilized and stabilized in August, cotton yarn prices have gradually stabilized, and sales have been slightly faster than the previous period. However, it is difficult to increase the current price. The price of cotton yarn fell by more than 10,000 yuan per ton from the highest price in early March, a decline of nearly one-third, and this downward trend made it difficult for many companies to ease their breath. With the upcoming listing of new cotton, the cotton resources on the market are more abundant, and the possibility of a substantial rise in cotton prices is very small. Downstream companies believe that there is no need to purchase large quantities of goods, and they are still used for purchase.

Zhu Bina, chairman of the China Cotton Textile Industry Association, believes that last year's cotton prices rose sharply and cotton spinning companies benefited. This year's cotton prices have fallen sharply and companies have encountered great difficulties. From July to early August, the period during which prices have fallen significantly is also the most difficult period for cotton spinning companies. SMEs are shut down more and large companies are barely maintained.

Taking Texas in Shandong Province as an example, Texas has 397 textile and garment enterprises above designated size, of which more than 180 are cotton spinning enterprises, and the cotton spinning capacity is 1/7 in Shandong and 1/20 in China. At present, the local small and medium-sized cotton spinning enterprises have started and stopped. Overall, 80% of the textile enterprises are in restricted production and production. Some companies are afraid that the high-temperature or high-humidity environment equipment will rust and go back to workers and they will have to bite the scalp. However, textile companies are still not seeing signs of recovery at the moment, and textile companies are generally not optimistic about the market outlook.

Wang Sishe, general manager of Texas Hengfeng Textile Co., Ltd., said that the current pressure on the industry is weak market demand, lack of orders, and fewer export orders. “Because the downstream yarn price is too low, cotton spinning companies, especially cotton textile companies, produce a ton of cotton yarn with a price difference of less than 5,000 yuan, which is a difference between storage and processing and labor costs. The profit is very low or even losses.”

Gao Fang analyzed that the cotton spinning industry is facing greater domestic inflationary pressures, difficulties and cost increases in the corporate economy; the international economic situation is volatile, the demand recovery is unstable, the exchange rate is continuously rising, international competitiveness is weakened, and exports are not Certainty: Labor, raw materials, energy, and other materials have risen in price, and their costs have risen too quickly, making it difficult for companies to digest.

Experts and industry experts suggest that we should continue to pay attention to and support domestic cotton production, and increase the incentives for planting cotton farmers through subsidies and guide price protection prices. At the same time, we should adopt green credit channels and special funds to guide cotton spinning enterprises to upgrade and increase the added value of products. The release of information on cotton and cotton textile products and the increase in transparency of industry information will guide textile companies out of their predicament.

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