Foreign cotton yarn hit the domestic market

For future dumping, the industry expects that it will be similar to the dumping in September, and the price will be lower than the reserve price, so as to ease the cost pressure on textile companies. However, based on the closing price of RMB 20,400/tonne, there is obviously not much room for Sino-Canadian cotton to cast reserve prices and the torment experienced by textile companies will continue.

“Now domestic textile companies use the world’s most expensive cotton, the labor and capital costs are rising, and the downstream market is still weak. The current situation in the cotton spinning industry is very difficult and the enterprises are very difficult.” Tian Shaoqing, chairman of Tianrun Textile, told reporters .

Tian Shaoqing introduced that at present, foreign cotton is only 15,000 yuan / ton, and if the domestic cotton spinning enterprises can not get the import quota, the cotton price after tax is as high as 20,000 yuan / ton, the cost is higher than 5,000 yuan / ton. Moreover, labor costs in Southeast Asia and South Asia also have advantages, and the competitiveness of Chinese companies has been severely weakened.

Under the pressure of internal and external cost gaps, some cotton spinning companies turned overseas, or invested overseas, or directly imported cotton yarn from overseas.

It is understood that although China has imposed import quotas on cotton and restricted imports, it has not implemented import quotas on cotton yarn and foreign cotton yarn has swarmed in. Due to the low price of foreign cotton yarns, it has caused great impact on domestic cotton spinning companies. Tian Lienchen told reporters that the low price of foreign low-cost cotton yarns is close to domestic cotton prices, which makes it impossible for domestic companies to compete with them.

Customs data also shows this situation. In the first 10 months of this year, the total number of imported cotton yarns in China reached 1.231 million tons, an increase of 70.01% year-on-year; cumulative cotton yarn exports were 356,000 tons, an increase of only 7.46% year-on-year. The serious situation faced by domestic cotton spinning companies is evident.