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Abolition Of Temporary Cotton Purchase And Storage System Will Lead To A Fall In Cotton Price Yarn Price.

2014/4/2 8:40:00 48

to ensure that a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > cotton demand for enterprises, the relevant departments decided to adjust the cotton reserve policy since April 1st. 
 recently, the reporter learned from the China Textile Industry Federation that in September this year, the cotton temporary storage and withdrawal system will be abolished, and the cotton price difference of up to 5000 yuan is expected to narrow. However, textile enterprises are not optimistic. 
 "planned cotton" has seriously damaged the textile industry, and it has caused a hundred billion yuan in financial burden. 
 "our cotton policy is like a dammed lake. Textile enterprises are like residents living downstream. They are at risk at any time." Xiao Jingyao, vice president of Huafang group, has been busy with "offshore registration" in the past two years. As one of the pioneers of China's cotton spinning enterprises, Huafang's listed companies lost about 32000000 Yuan in 2013. Xiao Jingyao said frankly, this is the disaster caused by China's cotton policy. "It is said that the textile enterprises" go out "in recent years, in fact, everyone is trying to escape from the cotton price difference. 
 September 2011, in order to cope with the collapse of cotton prices, China established a temporary cotton purchase and storage system. At that time, the state bought and sold lint at the price of 19 thousand and 800 yuan per ton, and the effect of the market immediately appeared. Since then, the temporary storage and storage system has been keeping the price of cotton in China to 20 thousand and 400 yuan per ton. At the same time, the cotton price in the international market has continued to drop, leading to a price difference of 5000 yuan / ton between domestic and foreign cotton. 
 cotton price difference engulfed the profit margins of China's cotton textile enterprises, and even resulted in a large number of small and medium-sized enterprises shutting down. "At present, apart from a few leading enterprises like Lu Tai, cotton spinning enterprises in China are not making money, or using sideline businesses to pay money." Xiao Jingyao said. 
According to the data of the China Federation of textile industry (P), last year only 8 million 100 thousand tons of cotton were used in China's textile industry, and the gap of 2 million tons was made up of imported cotton yarn or chemical fiber instead. "This is equivalent to 8% of the country's textile production capacity has been idle in unfair competition, and a large number of cotton mills have to shut down." Xu Wenying, vice president of the China Textile Industry Federation, said that the cotton purchase and storage system has brought "big gifts" to rival competitors in China's textile industry, such as India and Pakistan, so that it can export large quantities of cheap cotton yarn to China in a big margin. 
 cotton purchasing and storage also led to a sharp decline in cotton quality in China. Zhang Hongxia, chairman of Shandong Wei Qiao textile Limited by Share Ltd, reflects that too few high-grade cotton in the state's storage cotton is not conducive to upgrading the product quality. "Now there are 345 levels of Mashup in the national cotton store, and three impurities in silk. With such cotton production, the quality of the textile can not be controlled at all." Zhang Hongxia said. 
 National storage cotton has caused great pressure on the financial sector. In view of the poor quality and high price of cotton, the national cotton storage market continued to be slack, with inventory up to about 12 million 700 thousand tons, and the state spent about 200 billion yuan on storage and storage. "A ton of cotton subsidies to finance about 3000 yuan, is a heavy financial burden. Moreover, cotton will drop by one level every year, and the loss will be greater. " Yang Shibin, director of the cotton Working Committee of China Textile Industry Federation, said. 
 prevent cotton price from plummeting. Look forward to the national cotton store "beautiful women first marry" /p >
 hearing the appeal of all parties, in September this year, the cotton temporary storage and storage system which lasted for 3 years will be abolished and replaced by the pilot cotton farmers in Xinjiang. However, many textile enterprises have fallen into a new dilemma. 
 "do not cancel the purchase and storage, the domestic and foreign cotton price difference is so big, the enterprise cannot eat; now cancels, the cotton price may fall sharply, keeps up with the yarn to be able to fall sharply, how does the stock do? The profession will still receive the heavy blow. This year will be a difficult year. " Huafu color spinning [-2.02% Fund Research Report] Song Jiang, director of Limited by Share Ltd operations, said that after the abolition of the auction price this year, the pending storage plan has always been the heart of the enterprise. 
 at the beginning of this year, Zhu Beina, chairman of China Cotton Textile Industry Association, visited 1540 cotton spinning enterprises. "The situation started this year is worse than last year, and many enterprises are waiting to see it." Zhu Beina said that enterprises hope to narrow the price difference between domestic and foreign cotton, but they do not want the national cotton and cotton to be thrown to the market in an instant. 
 because of the high price of national cotton and quality, the enthusiasm of enterprises has not been high since the second half of last year. Zhu Beina suggested: "in view of the longer cotton time, the more downgrade, I hope that the national cotton store can" marry the beautiful woman first ", which will not only enhance the enthusiasm of the enterprises, but also reduce the pressure of financial subsidies as soon as possible. 
Less than P, the spanportation cost of cotton reserves is also a problem for enterprises. Xinjiang quilt is considered to be the best quality cotton, but the Xinjiang cotton auction is designated in Xinjiang, and the cost of Xinjiang cotton spanportation needs all enterprises to bear. "In Jiangsu, we are still more active in filming, and no one wants to shoot in Xinjiang." Tang Qiyi, chief of supply and marketing department of Wuxi one cotton textile Co., Ltd. 
 more enterprises appeal that cotton farmers should pay more attention to cotton quality while trying cotton growers direct subsidy and increasing cotton growers' planting enthusiasm. Jiangsu Yueda Textile Group is highly competitive in the field of high count yarn with high added value, but Chen Rong, general manager, said that domestic cotton materials are few. "Last year, the company stored 6000 tons of cotton, of which 1000 tons of Xinjiang cotton, but finally used only a few tons. There are too many three silk in the cotton bag, which can not be used at all. If our knitted cotton is really used in domestic cotton, it will also be defective or inventory. 
 increase and gradually abolish quotas so that enterprises can make full use of two international and domestic markets /p >
 in the wait and see, Yueda began to inspect the market in Ethiopia and planned to open the textile industrial park in the area. "When the real estate cotton, the port is closer to Spain, it can support our acquisition of the more than 600 shops of the Spanish a target=" _blank "href=" //www.sjfzxm.com/ "> the clothing" /a "brand. Chen Rong said that even if the cotton temporary purchase and storage system was abolished, if it remained in the country, even if it was to go to Xinjiang, it would still be difficult for enterprises to make profits this year. "Can only escape, run away quickly, the global layout." 
 the first step to escape from Yueda is Tianhong textile. Today, nearly half of the capacity of the rainbow is set up in Vietnam, mainly in the core spun yarn market, while domestic factories only use chemical fibre and high value-added products. This layout has increased the net profit of rainbow last year by more than 8%, far exceeding the industry level. 
"P >" cotton's temporary storage and purchase system is coming to an end. Why should an excellent textile enterprise escape "? The issue of import quotas remains unsolved. 
 according to the WTO agreement, our country quotas import 894 thousand tons of cotton every year, 1% preferential duty, and the imported cotton which is outside the quota, the government adds 5% to 40% sliding tax. The purpose of sliding duty is to reduce the impact of imported cotton on the domestic cotton market and ensure the cotton farmers' income. However, due to the formulation of import quotas, China's textile production capacity is only about 30000000 spindles, and now there are 130 million spindles, resulting in a quota far smaller than demand. 
 < < a href= > //www.sjfzxm.com/news/index_q.asp > quotas < /a > failed to protect the interests of cotton growers, failed to improve farmers' enthusiasm, but rather nurtured a number of quotas and bred corruption. It is a typical way to intervene in the market with planned economy. Xu Wenying said that China's cotton planting area decreased by 6% to 8% in 2013 compared with 2012. Cotton planting area is expected to decrease by 8% to 10% this year. Quotas exist in the most difficult time of industry, making money in speculation and scalping in import and export trade. Only by increasing or even eliminating quotas can Chinese enterprises really make use of the two markets at home and abroad.