Textile Industry: Why "Jin 9" Quotes Lost

“Jin 9 Silver 10” has always been the best time for textile companies to sell and sign orders for the coming year. However, in September of this year, the company suffered a lot. Some cotton textile companies not only failed to sell well, orders were not dared to pick up, and were dragged down by the cotton spinning industry. Textile machinery companies not only failed to book orders for the next year, but also began to appear in the phenomenon of subscribers not picking up goods, making this year's "Golden September" a huge contrast with previous years.

Cotton price and machine material price affect cotton spinning enterprises

"Since last year, cotton and cotton yarn prices have been rising all the way, and cotton spinning companies have not dared to make a large number of orders. This year's 'May Day' holiday, the yarn price jumped to the side of the cotton price and jumped." This is a family of Shandong Xiajin. The temperature manager of cotton spinning company describes the price of cotton and cotton yarn.

Manager Wen said that in April this year, the price of cotton was soared to about 34,000 yuan/ton, and foreign cotton began to flood the domestic market in a large amount. In order to prevent raw material prices from continuing to rise, Wen's company, like many of its counterparts, had to buy up inventory, but immediately the price plummeted, and companies did not dare to follow up. At present, companies are afraid to take orders, because the price of orders that are coming now cannot digest the past Khmer prices. As for next year's orders, it depends on the price of new cotton after listing. Efforts to digest Khmer prices are the aim of companies to take orders now and in the future.

Cotton accounts for 60% to 80% of cotton production costs. Will cotton prices continue to fall in the next step? When the reporter interviewed in Xinjiang, a cotton purchase company in Shihezi also calculated an account for the reporter. Take Xinjiang cotton as an example. In 2010, the cotton planting cost of the Northern Xinjiang Corps was about 1,400 yuan/mu, and the local area was 1,200 yuan/mu; and this year, the cotton planting cost of the Northern Xinjiang Corps reached 1,700 yuan/mu, and the local planting cost rose. At 1,500 yuan/mu, the planting cost in southern Xinjiang even reached 2,000 yuan/mu. The continuous increase in cotton planting costs has brought domestic cotton prices to a high level, which has determined that domestic textile companies are facing great cost pressures.

In the ups and downs of cotton prices, the most affected are the low-end SMEs. It is understood that small companies in Jiangsu and Zhejiang provinces have already had some companies “on holiday”, and some have begun to sell machines. In a better situation, they “clench their teeth”. The reason why these "clench hard" companies did not dare to stop work easily is mainly because it is difficult to recruit workers in a short period of time after work stoppages, and the sources of goods and sales channels will be affected.

In addition, the dramatic increase in the prices of machine materials this year has also become a reality that companies have to face. The fabric materials of cotton spinning companies seem to be few, but this year has become a heavy burden. “A seven-inch wrench used to be around 15 yuan in the past, now it is 22 yuan. The barrel of lubricant used to be more than 3,000 yuan in the past, it is now more than 5,000 yuan, and the quality has declined. These are basically unattractive machine material costs, this year is particularly heavy If the labor cost, exchange rate increase, and machine materials cost are added together, the price of cotton yarn will remain at around 22,000 yuan to 24,000 yuan per ton, and the future profit of cotton spinning enterprises will be greatly reduced." This is the head of a cotton spinning company in Dezhou, Shandong Province. Account to the reporter.

Textile machinery companies dragged down by cotton spinning demand

For textile machinery companies that have a certain lagging reaction to market conditions, although the situation is slightly better than that of cotton spinning companies, the phenomenon of buyers not picking up goods has a tendency to spread. In July, companies in Shanxi, Shaanxi, and Hebei that produced spinning frames and roving frames had only a small amount of non-receipt, and now basically every family has such problems. According to a person in charge of a textile machinery company in Jinzhong, Shanxi, the situation of the cotton spinning enterprises has caused the textile machinery enterprises to fail. The first half of the year had predicted this, but it was not expected to be so severe. Looking at the situation in the second half of the year, orders for textile machinery companies continue to be completed, and the profits of enterprises this year are still guaranteed. But September is the time for next year's orders. From the reporter’s understanding of the situation of textile machinery companies, there are few companies signing orders, which indicates that the companies that will produce cotton spinning equipment in the coming year will also enter the low tide together with the cotton spinning enterprises. This is very rare.

When the industry market turns around, Gao Yong, vice president of the China Textile Industry Association, believes that China's textile industry is inextricably linked to the international market. Now that the developed countries have not yet emerged from the economic downturn, the economic recovery will take time. In addition, China is also in economic adjustment, monetary policy continues to tighten. Therefore, it is unrealistic to count on a turnaround in the textile industry in a short period of time. Our enterprises must have long-term preparations, continue to step up efforts to adjust products, and wait for greater development after the turnaround.