Cotton prices plunge Sichuan garment company "very injured"

The price of cotton has fallen, but textile and apparel companies have found it difficult to “smile”

● The high cotton price since the second half of last year has declined since the Spring Festival this year. As of now, it has fallen by more than 30% in three months. ● The cotton price has soared and fluctuates, which has reduced the orders of textile and garment exporting enterprises in Sichuan. Chengdu Customs data show that: 1- In April, Sichuan’s clothing exports plummeted by 60% from the second half of last year. The soaring prices of domestic cotton prices frightened many farmers and textile companies. As of yesterday's close, Zhengzhou Cotton's main contract closed at 25,200 yuan/hand, down 25% from the peak in mid-February, and fell by over 30% in three months.

The soaring and plunge of cotton has a great impact on Sichuan cotton and garment companies. Statistics from Chengdu Customs show that from January to April this year, Sichuan exported a total of US$310 million in clothing and clothing accessories, a sharp drop of 58.9%.

Textile companies export orders drop by 10%

"Annoyed, the price of cotton has fallen so badly that customers are waiting and watching. The real big orders are very few!" Yesterday, Wan Weiping, chairman of Sichuan Textiles Import & Export Co., Ltd., complained to the reporter of Huaxi Dushi Bao.

Many customers choose to wait and see in the face of skyrocketing plunge. Wan Weiping analyzed that “when we go up, we have better points. Customers are afraid of continuing to rise and will quickly place orders. When customers fall, customers will choose to wait and see.” Some customers even place orders in countries with relatively stable prices and low prices.

“Although customers with real needs still have to place orders, under the background of the recent cotton fall, they are mostly small orders, urgent orders and less orders,” Wan Weiping said.

According to rough statistics, the orders of Sichuan Textiles Import and Export Corporation fell by about 10% compared with the stable cotton prices.

Loss production of small and medium-sized garment enterprises

When a reporter from Huaxi Dushi Bao contacted Miao Xiaochuan, deputy general manager of Sichuan Xinlixin Imp. & Exp. Co., Ltd., he was on a business trip to Shanghai. “I'm talking about the export business here. The cotton price has skyrocketed and plummeted. The garment companies like us are really unable to stand. what."

As the predecessor of Sichuan Garment Import and Export Corporation, Sichuan Xinlixin Import & Export Co., Ltd. once ranked 6th among Sichuan Import & Export Corporation, which is also one of the ten key export enterprises in our province.

“When the price of cotton rose, many cotton farmers planted cotton, and they are now unable to sell it. The losses are heavy. The cost pressures of companies in spinning and weaving are also very high. The increase is better, because buying does not buy up! But it is down It is a bit miserable. The market is lagging behind. The high-priced cotton produced by production companies finds that after the finished product is finished, the price of cotton has fallen and the finished product price has fallen. This is basically a loss-making trade.

Miao Xiaochuan said that the sudden rise and fall of cotton hit the cotton and clothing companies. Some small and medium-sized garment manufacturers in the coastal areas have already faced closures. “No production, skilled workers are gone, and when the market is good, no workers can be hired. Production, it is basically a loss of business, silk prices are lower than raw materials, gauze prices lower than the price of cotton." Xiaochuan sigh.

Establishing a stable cotton price mechanism is imminent

Expert statement

In the province of Shandong where cotton is produced, the current cotton price is only 8 yuan/kg, and it was 14 yuan last year when it was the highest. Although there are signs of stabilization in the cotton prices on these two days, they have been affected by soaring cotton prices since the second half of last year. It is difficult for the cotton prices to rebound in recent months.

In March this year, the National Development and Reform Commission and other departments issued the “2011 Preliminary Cotton Storage and Receipt Plan” and proposed that 13 provinces, including Xinjiang and Shandong, be purchased at an unlimited price of RMB 19,800 per ton.

In this regard, the analysis of the industry, the minimum protection price has a role in stabilizing the market, but it can not fully mobilize the enthusiasm of cotton farmers. If this round of plunging continues, the peasants' enthusiasm will be frustrated, which will lead to a reduction in production. The next round of ups and downs may take place again.

“Stabilization of cotton production is the “source of all things” for the stability of the entire industry chain.” Large fluctuations in output will drive price fluctuations in follow-up products such as lint, yarn, and cloth. “Government departments should increase cotton subsidies and temporary storage systems. Make great efforts to maintain the basic stability of the cotton price.” Expert Analysis of Sichuan Textile Science Research Institute. West China Metropolitan Daily reporter Niu Li's grain price continued to rise in the province in the first quarter. The reporter of Huaxi Dushi Bao learned from the market operation and adjustment department of the Provincial Department of Commerce yesterday that grain prices in our province continued to rise in the first quarter of this year. Among them, the year-on-year increase of 15.5% in February, the chain rose 1.6%, has risen continuously for 17 months. Rice replaced corn and wheat as the leading varieties. In January and February, rice in our province increased by 15% and 29% year-on-year, slightly higher than the average national grain price.

According to the supervision of the Provincial Department of Commerce, the volume of grain wholesale trade in the province in January and February rose by 2.4% and 2.3% respectively; the average wholesale price was 3.41 yuan/kg and 3.72 yuan/kg respectively, up by 11.1% and 9.5% year-on-year; retail sales The prices were 5.09 yuan/kg and 5.18 yuan/kg respectively, up 28.1% and 21.2% year-on-year.

From 1 to 4 weeks in March, the wholesale price of grain was 3.73 yuan/kg, 3.67 yuan/kg, 3.76 yuan/kg and 3.76 yuan/kg, up 8.4%, 6.7%, 10.3%, and 8.1% year-on-year respectively.

“There are many factors in the recent increase in the price of food.” According to analysis by the Department of Market Operations of the Provincial Department of Commerce, imported inflationary pressure has pushed up the price of some agricultural products.

At the same time, the frequent occurrence of severe weather has exacerbated the tight food supply expectation. At the beginning of this year, drought conditions in the north, especially in major grain-producing areas in northern China such as Shandong, Henan, Hebei, and Shaanxi, continued. The market’s demand for food in the later period is expected to increase. The continuous growth of consumption has driven the increase in food demand.

The obvious changes in the pattern of food production and distribution also affect food supply expectations. In addition, chemical fertilizers and diesel oil are important agricultural resources. The rise in prices will inevitably cause rising costs of food and other agricultural products. Increases in labor and other prices have also contributed to the high prices of agricultural products.