Cotton Prices Plummeted Sales Dropped Sharply, Hebei Textile Enterprises Stop Production Rate Of About 50%

Two years ago, in May, textile enterprises were working on the

According to reports, because cotton prices continued to fall and dragged down the cotton yarn and cotton market, the domestic textile enterprises sales fell sharply, and generally fell into the predicament of stop production and limit production.

According to industry estimates, in some areas of Hebei Province, the limit production rate is about 50%, and the limited production enterprises in Shijiazhuang, the capital of textile industry, are also estimated to have reached 30%.

The drop in cotton prices is bad news.

An anonymous person in Shijiazhuang

According to him, although the cotton prices are going down all the way, they are different from ordinary people's imagination, which is bad news for textile enterprises.

"Cheap cotton can really reduce our cost, but at the same time, the finished product market is also looking at cotton prices, which lowers the price of our products.

And don't forget that our stock is not cotton in the current period. Many enterprises are storing cotton that they buy when cotton prices are higher than before.

It is understood that since the second half of last year, the new cotton market has been listed after the Spring Festival this year. Although there have been several fluctuations, the overall price is going up, and the downstream market of the cotton market and textile enterprises is very active.

Cotton prices at that time rose from 25 thousand yuan per ton to the highest of 35 thousand yuan, and now they have gone down to around 23 thousand yuan.

In the latest month alone, cotton prices have plummeted nearly 4000 yuan / ton.

The cold market of "buying up but not buying"

"The market has always been bought or sold.

Cotton prices drop and cotton yarn gets worse.

You have been falling, the market has been waiting to see how the market is going to be good? "A middle level of a cotton textile mill in Handan has a secret.

He said that this year's market is "much worse than last year". Textile enterprises in Handan are also generally facing a difficult market, but he claims that no local enterprises have stopped production.

It is estimated that the average cost of cotton stocks in domestic cotton enterprises is between 26 thousand and 27 thousand yuan. The current spot price has made most of the cotton enterprises face losses.

At present, many enterprises still have a glimmer of expectation for the peak season of consumption in May, and expect that prices will rise again as a result of better consumption.

The above analysis of the head of a textile enterprise in Shijiazhuang, in addition to downstream sales sluggish, restricting textile enterprises and the state's tightening of bank loans in the background of more and more serious capital depletion, export weakening and domestic consumption weakness.

"As far as I know, some cotton merchants have to sell the cotton in their hands because they want to repay the loan within a limited time."

He said that the problem of tight liquidity is common in all sectors of the market, cotton producers, textile enterprises and garment enterprises, which is one of the reasons for the sluggish market.

The policy of tightening monetary policy is showing its power.

The data show that in the first quarter of this year, the financial institutions of our province added 77 billion 830 million yuan, 19 billion 30 million yuan less than the same year.

A shocking vicious circle

The chain reaction of falling cotton prices has not stopped here.

Just as the price of cotton has declined, textile enterprises have been crying incessantly. At the same time, because of the wide range of stop production and even temporary shutdown of textile enterprises, the demand for cotton has been reduced, which has pushed the cotton market further depressed and cotton prices have gone down further.

According to media reports, due to the low price of electronic disk operation and a continuous reduction of cotton purchase price by a large textile enterprise in Shandong, Shandong's local lint buying and selling market has been depressed recently.

Because the purchasing price is not stable, the acquisition of cotton traders to the countryside is very difficult, and some cotton traders have stopped buying, so the number of daily acquisitions of cotton enterprises is maintained at several thousand kilograms.

The above director of a textile enterprise in Shijiazhuang said that the most recent days were difficult for cotton farmers, cotton traders and textile enterprises.

According to his understanding, "textile enterprises in the province generally fail to start work.

In some places, the shutting down ratio of textile mills has reached 50%, and the operating rate has dropped in Shijiazhuang, with an estimated 30% of the production limit.