The cotton price soared nearly 40% in a month or the textile companies will not hear the noise

Cotton prices have recently gone crazy! In just over a month, the transaction price in the cotton market has increased from around 18,000 yuan/ton in early September to about 25,000 yuan/ton currently, soaring nearly 40%.

Right now, the domestic new cotton has just been listed. The person in charge of a textile company in Chongqing told the “China Industry and Commerce Times” reporter: Taking “329 cotton” as an example, the transaction price has already approached 25,000 yuan/ton. “If this rises again, companies will immediately face Loss, can only stop production waiting for the cotton price to fall and start again."

Soaring all the way, when the end

In the office of Fengxiu Qian, the head of Chongqing Chuanjiang Wool Textile Factory, Feng Xiuqian provided the reporter with a price list for the 2010 cotton contract. The table shows that from January to October this year, the transaction price of cotton rose from about 15,000 yuan / ton to about 25,000 yuan / ton, which rose by 70% in 10 months. The relatively rapid upward trend is that after the national seven ministries and commissions jointly held a meeting to discuss the suppression of cotton prices at the end of September, during the National Day Golden Week, the price of cotton rose by 20%.

Peng Hongmin, general manager of Chongqing Changfeng Ramie Textile Co., Ltd. and chairman of Chongqing Evergreen Textile Co., Ltd., told reporters of the China Industry and Business Times: Originally, the price of new cotton listed cotton should fall after the National Day, when a lot of raw materials were eaten. Cotton, not wanting to rise more aggressively, had no choice but to wait. He said, "Inventory cotton can still maintain about half a month's production. At that time, the price of cotton does not drop. If you continue to start production without stopping production, your company's losses will be inevitable." This is for Chongqing Changfeng Ramie Textile Co., Ltd., which has achieved profits for 10 consecutive years. In terms of the company, will the fate make a turning point?

Feng Xiugan’s worries are even worse. The main processing trade of Chuanjiang Wool Spinning Co., Ltd. has an annual processing capacity of about 2 million meters under Jinxia Printing and Dyeing. Except for processing, most of it is self-export business. If it is calculated at current cotton price, it will lose about 0.5 per meter. Yuan, so after the completion of the existing contract and inventory, the foreign trade export business will be completely suspended. Feng Xiugan said: "It is estimated that up to 1 to 2 months of production will be maintained."

Cancel quotas and crack down on hype

In fact, Peng and Feng are worried that the soaring cotton price will endanger the entire textile industry. After a severe financial crisis, China's textile industry has survived, but this time the soaring cotton price is likely to cause more serious damage than the financial turmoil.

Feng estimated that in the near future, China's textile exports will drop sharply by 80%, cotton spinning enterprises will completely suspend production by more than 50%, and about 50% of enterprises will be half-opened and half-stopped. He said: "This is a large industry that involves 20 million people in employment. Many places are still pillar industries. We do not want to see the devastating blow to the textile industry because of the high price of cotton."

What are the expedient measures to cope with the current dilemma facing the textile industry? Feng Xiuqian said that it would liberalize the import quota control of cotton and implement a comprehensive marketization operation. He believes that after the release, it can still be collected. After the cotton price falls, it will return to the original quota limit and play a role in macro-control.

Peng Hongmin also believes that the prompt adjustment of quotas for issuing quotas is a major measure to ease the contradiction between supply and demand. He said that the country’s quotas have been used up this year, which requires an increase in quotas to solve the thirst of the company.

It is understood that although the price of cotton in the international market has hit a new high for 15 years because of many factors, it is still about 30% lower than the price of domestic cotton, and it can basically be accepted by companies. Companies also have room for profit.

In addition, downstream products including yarn, cloth, clothing, etc. can rise? For this issue, Peng and Feng believe that the market can accept the moderate adjustment of prices and the actual situation is the same. However, they believe that if the price adjustment is too large, it will inevitably lead to a greater chain reaction, not to mention the market does not necessarily agree, so we must be cautious. "After all, textiles are related to the lives of millions of households and involve a lot of breadth. It is not appropriate to raise prices greatly."

It is reported that the issuance of quotas is also focused on a number of large enterprises. SMEs, especially small ones, have no quotas at all. They have already gone along with the market, and have come to the rescue on their own. Many of these injustices exist, and some of them even fall into the hands of speculators. Big profits. Peng and Feng both called on the country to crack down on malicious speculation and deliberately raise the price of cotton.

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