Difficulties Faced By Chinese Textile Enterprises

"The market is like warm water.

Most of the enterprises are "frogs" to be cooked.

Mr. Zhang, the head of a small textile enterprise in Dongguan, Guangdong, said that the textile market was good and bad, but in general, the number of orders was becoming less and less, and the operation became more and more difficult. He had decided to switch to other businesses.

It is understood that at the beginning of October this year, due to the arrival of a large number of orders from overseas Christmas and the return of some high-quality orders, the textile factory operation rate in most parts of the country had picked up, and textile enterprises ushered in a short spring.

"But I didn't expect it to be a flash in the pan."

Mr. Zhang said.

At present, there are a lot of textile enterprises like Mr. Zhang who sprouted.

Chen Chaoyue, the head of another medium-sized textile enterprise in Dongguan, said that the brilliance of enterprises in 2006 and 2007 is no longer the same. Their performance has dropped by nearly half and is at the edge of losses.

No way, he is now doing some textile machinery business.

"Many overseas textile enterprises in the hands of overseas winter

Orders have been basically completed, but clothing orders in spring and summer of 2013 have not yet arrived.

Zhu Jian, director of Foshan Chao Shun textile accessories company, said that during this period of high and thin land, they still have to bear very high daily operating costs. Some small and medium-sized private textile enterprises can only choose to leave their employees and temporarily shut down.

The high price of cotton is the most important mountain on textile enterprises.

It is understood that in order to maintain normal operation, some larger textile enterprises must ensure a certain output. No matter what the price of cotton is, they must carry out a certain amount of procurement.

"The cotton inventory of our cotton processing plant is 30 thousand tons, and now more than 20 thousand tons will be sent to the national reserve, and almost no cotton is sold to the textile enterprises."

Guo Yinying, a Hubei Baiyin cotton industry, said that it would not sell cotton to the textile enterprises at a price lower than this standard because it could hand in the price of 20400 yuan / ton of grade three cotton and 19800 yuan / ton of grade four cotton.

"20400 yuan / ton of grade three cotton prices are too high, textile enterprises simply can not afford to buy.

Imported cotton has to pay 40% of the tariff without quotas, and the cost is very high. "

Guo Yinying said that whether the purchase of domestic cotton or imported cotton, textile enterprises have to pay a very high cost, enterprises can only get the cheaper cotton by applying for throwing and storing.

It is understood that at present, a total of 859 textile enterprises have applied for throwing and storing cotton, and nearly half of the enterprises have obtained a total of about 850 thousand tons of cheap cotton.

"This time we throw out all the stores, but the quality is not very good, but even now, the cotton should be depleted."

Guo Yinying said that the only remaining low price cotton now is about 60 thousand tons of registered warehouse receipts in the futures market.

"This part of the warehouse receipt price is about 18800-18900 yuan / ton, hedging textile enterprises will fully enjoy the benefits of the futures market."

"Supported by the reserve price, the spot price of cotton has also been raised. At present, many textile enterprises believe that the price is too high to be optimistic about the future price of cotton."

Xu Aixia, a cotton researcher at Everbright Futures Research Institute, said Zheng cotton 1301 contract is close to delivery.

There is little room for cotton prices to go down under the support of price.

And Zheng cotton 1305 contract as far month contract, the price downward space is bigger.