Why Xinjiang Textile Enterprises Cannot Afford Xinjiang Cotton

At present, it is Xinjiang cotton The harvest season, however, is not a happy event for Xinjiang textile enterprises. In the context of the upside down of cotton prices at home and abroad, Xinjiang textile enterprises sitting in Xinjiang's cotton mountains are increasingly difficult to survive.

According to the statistics of the Economic and Information Commission of the autonomous region, half of the textile enterprises above designated size in our region lost money from January to August this year. Xinjiang textile enterprises can no longer afford the high price of Xinjiang cotton, and enterprises are restricted by quotas if they want to get cheap imported cotton from abroad.

"Xinjiang cotton is too expensive to afford," Wang Shaoming, deputy general manager of Xinjiang Yida Textile Co., Ltd., said helplessly on October 24.

Although Xinjiang is a major cotton producing region in China, with cotton output accounting for more than 50% of the country's total, the current price of domestic cotton and imported cotton is inversely linked, forcing textile enterprises sitting on the cotton pile in Xinjiang to find ways to "engage" in imported cotton to maintain production. Otherwise, enterprises will be unprofitable, or even lose money.

Wang Shaoming calculated a sum for the reporter, "The American imported cotton we bought, including tariff and freight, was pulled from across the ocean to Xinjiang, which is more than 3000 yuan cheaper than a ton of local cotton in Xinjiang. The profit of the textile industry itself is thin. Do you think the enterprise is using imported cotton or Xinjiang cotton to make a profit?"

In the cotton inventory area of Xinjiang Yida Textile Co., Ltd., the reporter saw that the cotton outer package with neat yards showed that the cotton came from the United States. "Almost half of the cotton used for spinning now is American cotton and half is Xinjiang cotton," said Wang Shaoming.

Similarly, Xinjiang Huafu Textile Co., Ltd., located in Aksu, the main cotton producing area of Xinjiang, also says that it cannot afford to use Xinjiang cotton. "We are trying to import cotton from Central Asian countries, including Kyrgyzstan and Kazakhstan." Wu Xinhua, head of the office of Xinjiang Huafu Textile Co., Ltd., said.

"If you use them all Xinjiang In cotton processing, it can be said that the enterprise has no profit at all. The cost of raw materials in the textile industry accounts for a large proportion. The cost of raw materials cannot be reduced, and the spun yarn has no competitive advantage in the market. " Wu Xinhua said.

According to the statistics from the Economic and Information Commission of the autonomous region, 105 textile enterprises above the designated size in our region lost 169 million yuan from January to August this year due to the inverted cotton prices at home and abroad. The number of loss making enterprises reached 56, with a loss area of 53.33%.

In fact, losses have actually appeared since 2010, and have now lasted for two or three years, "At present, the price of domestic cotton is 19000 yuan per ton, while the CIF price of imported cotton is only 14000 yuan per ton, with a price difference of 5000 yuan per ton. The gap between domestic and foreign cotton prices is so large that even if textile enterprises try to innovate technology and save costs, they can't make up for it," said the relevant person in charge of the textile office of the autonomous region.

The outflow of foreign trade orders ultimately affects the textile industry in Xinjiang, which is at the front end of the textile industry chain. At present, the textile industry in Xinjiang is facing unprecedented difficulties. The textile enterprises are underoperating and the economic benefits are declining.

In order to survive, the main business still sticks to Xinjiang Yida Textile Co., Ltd Ready to wear For sales, its high-end ready-made clothes have entered the United States and the United States Department Store; Some domestic textile enterprises have simply expanded to the high profit real estate development field.

"Now we are still suffering. Although spinning does not make money, we dare not stop production. Labor wages are getting higher and higher, and it is increasingly difficult to recruit textile workers. We are afraid that if we stop work now and resume production in the future, we will not be able to recruit people." Wu Xinhua, the office director of Xinjiang Huafu Textile Co., Ltd., said.

Of course, not every textile enterprise can "get" imported cotton like Xinjiang Yida Textile and Xinjiang Huafu Textile. "The state imposes quota restrictions on imported cotton. The quota ratio is 3:1, that is, domestic textile enterprises must purchase 3 tons of domestic cotton to have a quota of one ton of imported cotton," said the relevant person in charge of the autonomous region textile office.

Xinjiang is the main cotton production area in China, so the quota allocated is more limited. Only enterprises that spin more than 50000 spindles annually can get the import quota.