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Cotton Yarn Increased By More Than 10000 Yuan A Year; Many Enterprises Stop Production And Wait

2010/8/11 6:57:00 267

Cotton Yarn

   The high price of cotton yarn has overwhelmed Jilin textile enterprises. On the 9th, the reporter learned from the cotton textile enterprises in our province that the rise in cotton prices has directly led to a sharp rise in cotton yarn prices. Affected by the cost pressure, the operation of textile enterprises is blocked, and some enterprises adopt the strategy of overhaul and shutdown to deal with the current market. Industry insiders said that the profit of textile enterprises in our province has shrunk by nearly 30%.


Cotton yarn increased by more than 10000 yuan a year


"The rise in cost puts too much pressure on enterprises." Xu Lianli, manager of a sock enterprise in Liaoyuan Socks Industry Park, expressed the impact of the rise in cotton yarn prices on enterprises when talking about the rise in cotton prices.


She said that at present, it is an off-season for cotton textile enterprises. Since July, some small and medium-sized textile enterprises have seen insufficient order taking, and their output has declined month on month. Many enterprises are in the process of adjustment. Among them, the mainstream quotation of 40s pure cotton knitting yarn, the main raw material, has risen to 29300 yuan/ton from 19000 yuan/ton in the same period last year, and the price of 32s mainstream cotton yarn has also risen to 28000 yuan/ton from 18020 yuan/ton last year.


Xu Lianli said that while the cost rose, the sales volume declined. At present, the high price of raw materials has seriously affected the sales of the market. The sales volume of the enterprise has declined seriously, and the profit has shrunk by nearly 30%.


Xu Lianli, under unprecedented pressure, has been in extreme contradiction recently. She said frankly that if this continues, she can only use production restriction to maintain operations. However, as a result, the loss of workers is serious, which is not conducive to long-term operations. "It's all your bread and butter. How can I live on holiday?" Xu Lianli said. Many of her colleagues in the park stopped production.


   Nearly half of enterprises stop production and wait


The reporter learned that in Liaoyuan Socks Industry Park, almost all enterprises are facing the impact of cotton price rise.


"This year, many cotton mills started pricing on the spot, and raised prices once a month or even a few days, which put a lot of pressure on us downstream users. The products we produce will be lost if we sell them, and there is no way to stop production." Manager Wang of a sock factory in Liaoyuan Socks Industry Park told reporters that nearly half of peer enterprises had experience of overhaul, closure, and shutdown, and each enterprise became more cautious in purchasing.


In fact, the rising cost of raw materials has seriously affected the enterprise's market development. The textile enterprises in the province dare not transfer the rising cost of raw materials to the spot market. The competition is too fierce, and the price rise is tantamount to losing customers and cutting the way out.


   The price of cotton yarn will fall forever


"The main cotton producing areas of Henan, Shandong, Xinjiang and other places have suffered serious disasters, and prices are still difficult to fall in the second half of this year". Xu Lianli predicted that the cotton yarn price in the future market would not change much.


According to the forecast of the textile sector, China's textile industry will be affected by the rise of raw materials in the second half of the year. However, due to a series of uncertainties, the industry may show a trend of "high in the first half and low in the second half of the year". The economic growth of the industry in the second half of the year will be slower than that in the first half of the year.


In this regard, Li Fang, an insider in the industry, believes that the current textile production is in the off-season adjustment period. With the production of autumn and winter fabrics and autumn and winter clothing, the price of cotton yarn and other products has limited space to fall, and the current cotton output has also declined, which forms a strong support for the rise of cotton yarn prices.


At present, China's cotton stocks are tight. At the same time, during the critical period of cotton growth, the quality of major cotton producing areas has declined. It is expected that the overall textile price will continue to rise in August, and the cotton yarn price will fall back in the long run.

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