Cotton Prices Rose 20%&Nbsp; &Nbsp In 4 Days; Officials Said The Industry Had Been In Trouble.

　　 Cotton prices soar, China's textile industry is dead and alive

In the financial crisis, the heavily damaged textile industry is now suffering from the impact of RMB appreciation, silver contraction and export tax rebate reduction. Raw material Rise or even shortage. However, with the rising of raw materials, many local governments started large-scale sluice and power rationing in order to achieve the goal of energy saving and emission reduction in 11th Five-Year. As a major power consuming enterprise, the textile enterprises were included in the scope of power restriction.

For the current situation facing the textile industry, many people in the industry believe that the textile industry will fall into a large area of production reduction or shutdown, and the deputy director of the consumer goods industry department of the Ministry of information and industry has pointed out that the textile industry has been in trouble again.

　　 Raw materials are soaring.

" Cotton price Within 4 days, it has increased by 20%. This price transmission will soon be transmitted to the downstream, and the pressure of textile enterprises will be great. In September 20th, he accepted the interview with the China business newspaper.

According to statistics from the Ministry of industry and information technology, the profit of the textile industry increased by 61% over the first half of the year. However, the good year is only a flash in the pan. Under the pressure of cost and power limitation, the textile industry is facing the trend of high and low with the Chinese economy.

"The biggest problem that threatens the textile industry is the cost and quantity of raw materials." He told reporters that in recent years, the cotton prices he monitored showed that cotton prices quickly increased from 17000 yuan / ton to 20000 yuan / ton, which added enormous cost pressure to the textile industry.

In the last 4 days, the price of grade 4 cotton has risen from 18000 yuan / ton to 22400 yuan / ton, while the price of 5 grade cotton has also broken through 20000 yuan / ton.

It is understood that before September 20th, the US cotton futures rose sharply, while the futures exchange cotton futures showed a daily limit. {page_break}

　　 So why are cotton prices so high? What are the reasons for the rise?

The reporter understands, the reason that causes cotton price to rise all the time is multifaceted. On the one hand, due to the low cotton prices in 2008, cotton growers' confidence was frustrated and the planting area was reduced. Statistics show that in 2009, China's cotton production was 6 million 400 thousand tons, a decrease of 1 million 100 thousand tons compared with 2008, a drop of nearly 15%. On the other hand, last year, the main cotton producing areas such as cotton fell by nearly 1/4 due to climate disasters and other reasons, which further exacerbated the imbalance between supply and demand. At the same time, the international cotton price is also on the rise, while the major export countries such as cotton have suspended cotton exports, and cotton prices are hard to fall in the short term.

In addition, demand is also a major reason for the rise in cotton prices. China's textile industry has continued to stabilize and pick up in the second half of last year. In 2010 1~2, domestic yarn production increased considerably, up 26.52% compared to the same period last year, and the operating rate and orders of enterprises were much better than that of the same period last year.

Because of the purchase of high priced cotton, Su manager had to raise the factory price of the downstream yarn. "Our new price is not acceptable to us," he said. He said.

Obviously, the situation of textile enterprises' profits is still taking place. "The hardest part now is that the contract we signed earlier must also meet the price before the price rise, which has been in December." Su manager said helplessly.

　　 Driven by rising cotton prices, chemical fiber Prices also rose sharply.

In the view of textiles, textile enterprises are facing more than just the problem of high cotton prices. The next step will be the shortage of cotton.

This view coincides with that of Mao Shuchun, an expert in the Cotton Research Institute of the Chinese Academy of Agricultural Sciences. According to Mao Shuchun's prediction, by the end of 11th Five-Year, even if the cotton planting area is increased by 10 million mu on the basis of the existing about 80000000 mu, the annual import volume of cotton in China still needs to reach 4 million 500 thousand to 5 million 500 thousand tons, so that the balance of production and demand will be realized. At this time, the dependence of cotton will increase to 36% to 40%. For the strong Chinese textile industry, cotton resources have entered a strategic shortage period. {page_break}

"Cotton shortage in China is not only related to weather factors, but also to farmers' reluctant sale, and farmers are reluctant to sell when all kinds of agricultural products (20.70,0.75,3.76%) are rising." One industry insider said.

　　 Textile industry or production stoppage

However, the downstream garment industry is still optimistic about its surface and does not know the danger is approaching.

The China Textile Industry Association recently released the "2009~2010 China Textile and garment enterprise competitiveness analysis report" shows that the top 10 enterprises in the apparel industry have the highest profit rate of 10.46%, while the average profit margin of the top 10 enterprises in the knitting industry is 10.36%.

The reporter explained the reasons for the profits of the textile and garment enterprises. "In the second half of last year, the cost of raw materials was low. Now the raw materials of textile products are mostly purchased during that period, which has created a good profit margin for enterprises in the first half of this year, and now there will be many uncertainties."

A garment manufacturer told reporters about their profit reasons. "In the second half of last year, the price of down is 100 yuan per kilogram, half of it is cheaper than in 2008, and the price of terminal down clothing has not dropped. This has created a very good profit margin for us."

However, such a scene did not last too long. "Now the price of the down has increased to more than 200 yuan per kilogram, the cost of fabrics is also rising, the profit of processing down garments is greatly reduced." It is understood that the winter clothing is one of the most profitable garment processing products in 2009.

Mr Su, the new marketing department, is somewhat confused about the current situation. "I don't know what the price of raw materials will go up to," he said. He said.

It is reported that due to the restriction of cotton supply and price, a large scale production of cotton mills has been staged.

In accordance with the law of price rise, the price rise of cotton will drive the price of gauze to rise, and then the price of clothing will rise, which will probably be reflected before and after the Spring Festival. Su said, "if the downstream can not accept the high price, then we can only stop production and reduce production." {page_break}

　　 Textile industry tax cuts to come out

The pressure of raw material cost is only one of the pressures faced by the textile industry. At present, the local governments are under the pressure of energy conservation and emission reduction targets, and have taken measures to limit the power of industrial enterprises.

It is reported that in some parts of the textile enterprises in accordance with the power consumption of different equipment, "according to the requirements of energy saving and emission reduction, the production will stop for 50 days, and the bomb will be shut down for 20 days."

At the same time, there are also 19 textile enterprises being cut off by electricity.

In fact, as early as 3 months ago, in an interview with our reporter, he said, "at the end of the year, local governments will take power restriction to achieve the targets of energy conservation and emission reduction, especially for the light industry in the textile industry."

At that time, the reporter conveyed this idea to the textile industry and investment companies, but many futures analysts (bloggers) did not "move" when they heard the news. They thought it was impossible to pull the electricity off. However, three months later, a number of local governments began to slam the electricity in order to complete the task of energy saving and emission reduction.

For local governments in order to accomplish the targets of energy conservation and emission reduction, and to limit the electricity to the industrial enterprises, we are very opposed to it, but it is not easy to intervene. I feel sorry for all this, but there is nothing I can do about it.

In order to ensure the sustainable development of China's textile industry, the Ministry of industry and commerce is formulating macro policies to ensure a good development environment for the textile industry.

According to the reporter's understanding, the policy will mainly help textile enterprises to develop continuously from reducing taxes.

The textile industry has always been an important pillar industry of China's economy. The annual export volume accounts for 1/5 of the total foreign exchange earnings earned by China's merchandise exports, and the total employment population exceeds about 20000000. Most of them are migrant workers, and are considered to be related to the national economy and the people's livelihood.