Cotton Price Slump Makes Textile Industry Ride A Roller Coaster

At the end of last year, our newspaper published a "how crazy price will Cotton industry "Push into deadlock" reported on the 2010 cotton market Price Fever for cotton farmers Cotton merchant The huge impact of cotton market.

Half a year later, crazy cotton is still the topic of people influence It's still going on.

According to domestic media reports, the recent collapse in cotton prices makes many textile industry On a roller coaster profit Once climbed to the highest point in ten years, but this year is the cotton price plummeting, sad. In order to stabilize the market, the state has set a reserve price of 19000 yuan / ton.

What impact will this depressed cotton price have on cotton farmers? What kind of impact does it bring to textile enterprises in cotton producing areas?

Recently, the reporter of China Youth Daily came to the Eighth Agricultural Division of Xinjiang production and Construction Corps, the main cotton producing area in Xinjiang, and went deep into the farms and companies for an interview.

　　 Cotton farmers are worried

In the fifth company of Shihezi spring farm, several big cotton growers talked about the crazy cotton price last year, and their mood was complicated.

Chen Zongying, a worker in Wulian, said that he planted more than 420 mu of cotton last year, with a unit yield of more than 400 kg. If the net purchase price is more than 36000 yuan, the net cost will be deducted. Chen Zongying said that after planting cotton for most of his life, he never thought that he could earn so much money!

According to her, she earned all the money she had spent growing cotton for ten years.

She said that in the past year, a kilogram of cotton was sold for about 5 yuan, and she earned tens of thousands of yuan a year. In addition to re investment in production and cutting out the daily expenses of food and clothing, the amount of money that can be saved is quite limited.

But last year's cotton prices, cotton farmers were really shocked. Chen Zongying said, "at that time, I watched the rising cotton price every day. I couldn't believe that the cotton price could reach 13 yuan a kilogram."

Although she finally sold tuanli to tuanli at 10.3 yuan / kg according to the purchase contract signed at the beginning of the year, referring to the market price, she was very happy.

But after the money is put into the pocket, think carefully, such a price is not a good thing for future production.

Several big cotton growers share Chen's view.

Guo Junzhi planted more than 400 mu of cotton last year. Because of the high yield per unit area, he earned more than 800000 yuan in terms of cotton income alone. But in the happy, he is also worried about the future cotton market.

He said, the water rises, the boat rises. Last year's high prices have led to a rise in the cost of planting, especially the cost of labor services, which will not come down. It is not a good thing for us to expect too much labor cost.

Guo told reporters that last year, when the labor price was the highest, one person was hired at 9 yuan per hour. Today, it has risen to 14 yuan per hour.

Yang Bing, commander of the fifth company of quanshuidi, introduced that the fifth company has a planting area of 7217 mu. In recent years, cotton is basically planted in the fifth company. Last year, the total output of seed cotton reached 2900 tons, with an average yield of 380 kg / mu. There are 92 employees in the company. The per capita income of cotton planting workers alone has reached 90000 yuan, which is more than double that of previous years. This is unique in history.

He believes that from the perspective of cotton farmers, of course, the higher the cotton price, the better; but from the perspective of long-term market health, cotton prices last year were too high. At that time, the expected price was 7 yuan / kg. Who would have thought that it would break through 10 yuan? From the high level of 7.4 yuan to 8 yuan / kg in 2003 to 4.8 yuan / kg in 2008, if only relying on the strength of cotton farmers, they can not resist the market risk.

Yang Bing and several cotton farmers believe that although the super high cotton price last year made them make a lot of money, such a high price will definitely increase the cost of spinning, weaving, clothing and other enterprises, which will make many enterprises unable to bear the burden, and it is possible for them to stop production and go bankrupt. And this will certainly have an impact on the next year's cotton purchase price, too low price will affect the enthusiasm of cotton farmers.

They hope that a stable price will not affect the enthusiasm of cotton planting, increase the production and income of cotton farmers, and also be conducive to the development of textile enterprises.

For the current price of cotton market downturn, they said, from the cotton picking season there are several months, now the price can not be said to be the final price. Although the price is lower now, who knows what the price will be when it is acquired?

Although it is easy to say, they can feel their uneasy mood in their words.

At present, when the price of 5 kg cotton is not low, will we? Then the cotton will be white. {page_ break}

　　 Cotton enterprises in different situations

Compared with cotton farmers, Shihezi textile enterprises are much calmer.

In recent years, domestic textile giants such as Xiongfeng, Huafang, Huafu, Ruyi, Hongsheng and alise have settled down in Shihezi Economic Development Zone. The cotton spinning production scale of these enterprises has reached about 2 million spindles per year.

Among them, the production scale of Tiansheng Textile Co., Ltd. invested by Xiongfeng group in Shihezi has reached 1.25 million spindles.

According to the director of the company, more than 100 thousand tons of cotton is produced by Shisheng, the largest cotton production enterprise in the world. Shihezi Reclamation area produces 350000 tons of cotton throughout the year, and Tiansheng alone consumes one third.

In recent years, enterprises basically did not warehouse cotton, whether it was the high level last year or the low level this year. The reasons are as follows: first, the enterprise is in the cotton producing area, and the supply is not worried; second, the storage of cotton will cause the decline of cotton quality. Of course, the most important point is that the Shihezi government has adopted some policies on the raw cotton guarantee mechanism. Yinli group, the largest local cotton management company, signs a cotton supply contract with the cotton using enterprises to avoid the impact caused by the fluctuation of cotton price.

Li Yongsheng takes last year as an example. When the price of cotton was nearly 30000 yuan / ton, Yinli Group paid Tiansheng a price of 24900 yuan / ton to 25300 yuan / ton. He said that such a protection policy played a barrier role in Shihezi's textile enterprises against risks. Therefore, no matter how the cotton price fluctuates this year, with the protection barrier, the enterprise will naturally be much safer.

Li Yongsheng said that the enterprise did not take advantage of the low price of cotton storage plan.

Yongxing company of the second agricultural division of Xinjiang production and Construction Corps is a company mainly engaged in purchasing and operating cotton, which has the same nature and function as Yinli group of the Eighth Agricultural Division. Zhou Yi, Secretary of the Party committee of the company, said that the total cotton production in the second agricultural division reclamation area last year was more than 40000 tons, which was basically purchased by Yongxing company. The company purchased from the cotton farmers at the price of 26000 yuan / ton, and sold it to the enterprise at the price of 26000 yuan / ton after adding a little service charge.

Zhou Yi said that at first, he was also worried that he would be scolded by the enterprise, and asked the person in charge of the enterprise to have a meal. Unexpectedly, these textile enterprises did not care much about the price increase. They said that as the tide rises, so does the cotton and our yarn.

Zhou Yi told reporters that at the end of December last year, there was no inventory, which had never happened in the past. At the beginning, I was worried that the enterprises would not want such a high price of cotton. As a result, some enterprises still wanted more, ordering 3 tons at the beginning of the year, and finally 10 tons. After the price increase, these enterprises will sell cotton again.

The same is true of cotton enterprises.

Aksu western cotton Co., Ltd. has been very anxious recently. The company's responsible person said that it was afraid that it would not receive cotton last year. At a high level of 32000 yuan / ton, the company purchased 3000 tons of lint. It has been selling lint since the end of last year, and nearly 2 / 3 of it has not been sold by the end of April. Although the state gives a freight subsidy of 400 yuan per ton, if it is lower than 32000 yuan / ton, it will be compensated.

At the beginning of last year, the cotton merchants in Linjing had to sell more than 30 million tons of cotton in their hands, and they had no choice but to sell more than 30 million tons of cotton at the beginning of this year.

She wanted to make a low price as soon as possible. There are some in the mainland, but we can't sell them because we don't have car skins. Now we've got more than 10000 tons.

Railway transport capacity is tight, and it is difficult for cotton enterprises and cotton merchants to transport cotton abroad.

It is understood that by the end of April, nearly 700000 tons of cotton were still waiting to leave Xinjiang. Urumqi Railway Department said that due to the limited amount of wagons sent to southern Xinjiang, the main cotton producing area, and a large number of wagons were occupied by oil and other bulk commodities, so it was unable to meet the demand of cotton export in a short period of time.

"A part of the cotton purchased last year was purchased with loans, so there is a great pressure to repay the loans. Last year's cotton prices have gone up every day Vaharle maimaimaiti, head of a cotton processing plant in Aksu, said that if the overstocked cotton could not be sold, the purchase of new cotton would be reduced this year.

Reporters in the investigation found that many cotton merchants have this idea. {page_ break}

　　 The cost of cotton planting has been raised in an all-round way

What price will cotton be after weighing this year? Xinjiang cotton group and the autonomous region supply and marketing cooperatives said that cotton has not come down, the price is not good to predict.

But cotton business is generally bearish this year cotton price.

According to the survey, large inventory is an important reason for the difficulty in cotton sales in Xinjiang. Among the enterprises with a production capacity of more than 1.23 million spindles, lint inventory has reached 1.2367 million tons. Based on the average monthly lint consumption of 90 tons, the inventory can still be maintained for about a month.

Analysis of local cotton enterprises and cotton merchants shows that cotton prices rose sharply last year, and cotton farmers, cotton merchants and textile enterprises have the same bullish mentality, so that they hoard cotton and are reluctant to sell it. However, by the beginning of this year, affected by the rise of lint cost and labor cost as well as the national tightening policy, the enthusiasm of most textile enterprises to accept orders has been weakened.

Lin Shujing is not optimistic about cotton prices this year. Second, the government does not dare to increase the loan gap; third, it is difficult for the enterprises to pay back the loans due to the shortage of loans from the state. These reasons will cause cotton price downturn this year.

But she said that among the many cotton farmers she contacted, quite a few still had high expectations for cotton prices this year. Last year, the high level of 12 yuan / kg may be reached.

Many cotton farmers believe that this year's cotton planting costs have risen sharply, and the space for cotton price decline has decreased.

Zhao Xinmin, deputy director of Shihezi general field of the Eighth Agricultural Division, told reporters that last year's high price led to an increase in overall expectation. At the same time, the cotton planting cost this year has increased by more than 40% compared with last year. He calculated an account, if this year's cotton purchase price is lower than 8 yuan per kilogram, cotton farmers will not earn much money.

Last year's total cost of drying cotton fields in shiquanchang

Fertilizer: 67 yuan / bag last year, up to 80 yuan / bag this year;

Plastic film: last year 40 kg 10.5 yuan, this year increased to 12.8 yuan;

Seeds: 7 yuan / kg last year and 12 yuan / kg this year;

Labor: last year, the highest was 9 yuan / hour, and this year it has risen to 14 yuan / hour;

Pesticide: 20% higher than last year;

Pick up expenses: last year, it rose from 1.4 yuan / kg in previous years to 2.5 yuan / kg. This year's starting price is 2.5 yuan / kg, which may rise to 2.8 yuan / kg.

In addition, the cost of water and electricity is about 2000 yuan per mu. Chen Zongying said that in a relatively good situation, a mu of land can receive 400 kg of cotton, and if it is purchased at 8 yuan / kg, 3400 yuan can be harvested. After deducting the cost, the net income per mu can be more than 1000 yuan. If the net income of one mu of land is less than 1000 yuan, it is not cost-effective to plant cotton.

Last year's cotton price has been low for many years. It's just a good idea to say that the price of cotton has been low in recent years.

Last year, cotton prices rose, many textile enterprises expected to affect this year's cotton prices, although they generally expected that the price of cotton might fall, but they still early to Yinli and Yongxing cotton acquisition companies paid cotton advance.

Zhou Yi, Secretary of the Party committee of Yongxing company, said that at the beginning of the year, the company received 200 million yuan of cotton order from various textile enterprises. Now enterprises are learning to be smart, and the market is changing rapidly. When it comes to cotton weighing, no one can say what price it is. {page_ break}

　　 Cotton price game is like beating drums and spreading flowers

The same cotton acquisition companies, due to the different nature of the company, different strength, the impact is also different.

Lin Shujing's cotton business company is a private enterprise. She has been paying close attention to the change of cotton price recently. The state is collecting and storing at the price of 19800 yuan / ton. According to the experience of previous years, she thinks that the price of opening scale this year should be the current purchase and storage price, that is, about 8 yuan per kilogram

She said that her annual price is a little higher than that of state-owned companies, and she has certain competitiveness in the acquisition. However, due to the tight policy of the state this year, it is difficult to get loans from banks when purchasing cotton this year. At the same time, she is also worried about the financial ability of cotton textile enterprises to purchase cotton this year.

But the state-owned cotton companies like Yongxing don't worry too much.

Zhou Yi said that the policy will certainly have an impact on cotton prices this year, which will not be as high as last year, but experience tells us that the state will protect the interests of cotton farmers, and will not drop too low. Even if it does, farmers will not suffer losses.

Last year, Yongxing company bought cotton without any money. Considering this year's situation, the company has made preparations for loans to the agricultural development bank. In this respect, the company has advantages over other textile enterprises. The division can provide guarantee, but the Corps can guarantee. Zhou Yi said that this is the advantage of BINGTUAN's high degree of organization. State owned companies represent the interests of farmers.

Some people describe that the process of cotton price game is like beating drums to pass flowers, and the person who receives flowers is the one who "cries".

For cotton price fluctuations, Xinjiang textile industry experts said that this is not a good thing. Although the state-owned cotton enterprises play the role of "blocking flood and storing water" in the cotton business process, they protect the interests of cotton farmers to a certain extent, and also make some textile enterprises reduce the risk of purchasing cotton. However, this big fluctuation will bring a blow to the textile downstream enterprises and small and medium-sized enterprises, which will inevitably react on the front-end industrial chain of cotton textile.

Senior personages in the industry suggested that while protecting the interests of cotton farmers, the government should also formulate corresponding policies to support the development of medium and small-sized enterprises in the middle and lower reaches of cotton spinning. At the same time, Xinjiang should change the way of mainly relying on the export of lint and cotton yarn as soon as possible, from the low-end of the textile industry to the middle and high-end, and truly turn the resource advantage into the commodity advantage.