Imported cotton yarn is cheaper than domestic cotton

One ton of cotton spread 5,000 yuan

It is not just one person who is anxious but the entire textile industry. “Since this year, the operating rate or capacity utilization rate of domestic cotton spinning enterprises has generally been less than 60%. Among the companies that started construction, 60% are in a loss state and 30% are in a semi-discontinued state. What is this concept? This is equivalent to this year's national The total capacity of cotton spinning enterprises is only about half of last year." Chen Kangsong, deputy general manager of Fujian Hongyuan Textile, has been concerned about the changes in numbers. “The difficulties faced by the textile industry are much greater than those of the 2008 financial crisis.”

The cause of the current predicament is that in the eyes of Chen Zhuqing, chairman of Fengzhu Textile, the lack of demand from the garment industry and other downstream companies brought about by changes in the economic environment at home and abroad is a factor. Since the second half of last year, the spread of cotton prices at home and abroad has also increased. One factor. “The price difference between domestic and foreign cotton is 20%. What is the competitiveness of the domestic textile industry?”

How much is a ton of cotton in the end? After experiencing a sharp drop in cotton prices in the first half of last year, Chen Cangsong found that since September last year, domestic standard cotton prices have been maintained at 19,300-19,600 yuan per ton, while international cotton has been consistently down to 14,000 yuan. Ton. Recent quotation of US cotton The recent quotation of US cotton is 14416 yuan per ton, Australian cotton is 15,148 yuan, Uzbekistan cotton is 15,280 yuan, and Indian cotton is 13,810 yuan. "The current price difference for cotton has reached over 5,000 yuan."

What causes the huge difference between domestic and foreign cotton prices? Chen Chengqing and Chen Cansong mentioned cotton collection and storage invariably. "Cotton storage is to protect the interests of cotton farmers, mobilize the enthusiasm of cotton farmers, but indirectly exacerbated the cost pressures of textile companies and reduced the profits of textile companies." Chen Cangsong believes that "a high proportion of countries' purchases and storages have intensified the circulation of the market." The rise in cotton prices."

Although the difference between cotton prices at home and abroad is between 4,000 yuan and 6,000 yuan, for imported companies that do not have quotas for imported cotton, the price of imported cotton is low, but it is a kind of "luxury demand". It looks beautiful, but it falls short of its own head. .

Retreat for the second best. The company where Chen Cansong’s company fought for nearly 1,000 tons of “sliding tax” quotas last year, although the tariff quota increased from 3% to 5%, compared to the quota of imported cotton that only needs to impose a 1% tariff, but with domestic Compared with cotton, the price advantage is still very obvious. "Compared with some cotton companies spending 5,000 to 6,000 yuan to purchase a ton of imported cotton quotas, it is already very good to get a quota for 'sliding tax', although 1,000 tons is far from meeting the company's 450,000 yuan a year. Tons of cotton demand."

As there is no quota limit for cotton yarn imports, some cotton spinning enterprises “see” a new business, that is, they choose to import cotton yarn directly from India and Pakistan and sell it to downstream textile fabric companies or apparel companies. "The production of cotton yarn is not as good as selling cotton yarn. The frustration of some companies has further deepened the plight of the entire industry."

Where is the way out? Chen Clarou still has no way of looking at the direction. He also pays attention to the industry association’s trip to Southeast Asia, but whether he really wants to move, he told reporters: “It’s easier said than done!”