Cotton Purchase And Sales And Textile Enterprises Should Reduce Or Control Cotton Stocks

From unified purchase and collection to national collection and storage, cotton has "gone into the sea" after entering the market. How does the traditional advantageous cotton industry of our province respond to new changes in the market, seize the major opportunity of the alternation of old and new policies, and achieve "nirvana"? On August 11, the reporter learned from the cotton textile industry analysis meeting held by Henan Branch of Agricultural Development Bank of China, which organized relevant departments and 40 cotton and textile enterprises, that in this industry shuffle, transformation and upgrading have become the general trend.

　　 Cotton price International integration

According to the data, China has controlled about half of the world's total cotton reserves due to the three-year temporary cotton storage policy, which has become a price lever affecting the world cotton market.

The analysis will reveal that the state cancels Temporary storage of cotton After the implementation of the price of 17250 yuan/ton for dumping and storing cotton on April 1, the cotton market price accelerated to decline based on the dumping and storing price. At present, the spot price of tertiary cotton has dropped to about 17000 yuan/ton. Affected by this, the international cotton price also fell. For example, the price of American cotton in the domestic market was 16500 yuan/ton, basically equal to the domestic cotton price.

The relevant person in charge of Henan Branch of Agricultural Development Bank of China said that on August 31, the national cotton dumping and storage work will end. Affected by the futures market, the price of new cotton market may continue to decline to about 15000 yuan/ton or even lower Cotton textile industry Reducing costs, enhancing the competitiveness of textile enterprises, and promoting textile exports are a major benefit.

Order management wins

"Due to the low quality and expensive price of domestic cotton, we have introduced cotton raw materials from the United States, Australia and other countries since 2011," said Zhou Quantao, general manager of Wuyang Yinhe Textile Co., Ltd.

In fact, the temporary storage of cotton makes the quality of cotton harvested uneven. Many enterprises have faced the same problems as Galaxy Textile in recent years, which has affected the expansion of production of cotton textile enterprises.

The exemption of temporary storage policy will enable cotton to compete in the market "on its own merits", which will undoubtedly encourage the improvement of cotton quality. Experts attending the meeting said that the digestion of the national reserve stock is the first step to realize the marketization of the cotton industry. Under the conditions of marketization, cotton producers in our province should fully consider the requirements of textile enterprises on cotton quality, and enhance the awareness of seeking benefits from quality.

At present, cotton prices are still in a downward channel. Faced with the impact of policy changes, the participating enterprises agreed that in the future development, cotton processing enterprises should produce cotton suitable for spinning and marketing according to the market and specific customer needs; Cotton purchasing and selling enterprises and textile enterprises should reduce or control cotton stocks and prevent and control loss from falling prices.

"The most important thing is that the entire cotton industry chain should cooperate sincerely, implement order management, order based on sales, determine production based on sales, and share risks," said a person in charge of the enterprise.

The general trend of transformation

Experts said that although dumping and storing reduced the cost of raw materials for textile enterprises, downstream enterprises also priced their textile purchases accordingly. Moreover, due to the weakening of China's imports, the softening of foreign cotton prices will still have an impact on the domestic market. Therefore, to win the future for the cotton industry, it will become a general trend to fundamentally adjust the structure and upgrade the industry.

The relevant person in charge of the Provincial Association for the Promotion of Cooperation between Banks and Enterprises in the Cotton Textile Industry said that the rigid demand of the society for textile products will not change. The cotton textile industry should first boost confidence, and pay attention to playing its own advantages in the process of transformation and upgrading. For example, it can expand the profit point by extending the upstream and downstream industrial chains; Choose areas of expertise and pursue high added value and irreplaceable products.

It is reported that at present, 60%~70% of cotton spinning enterprises in our province have successfully achieved transformation through innovative technology reform, strengthening internal management, diversified operation and other methods, driving the spinning scale of the province from less than 2 million spindles in 2004 to 14 million spindles at present.