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Rising Tide And &Nbsp; &Nbsp; The Collective Self Rescue Of Textile Industry

2010/11/19 15:11:00 45

Price Rising Tide Yangtze River Delta Textile

The tide of price rises has spread to the hot spot of the Yangtze River Delta, and the debate over how to manage excess liquidity has become more intense.

Recently,

The State Council

The Executive Council even proposed that temporary intervention in price should be imposed on important necessities and production materials when necessary.

The reporter recently visited that the Yangtze River Delta region, a major textile city in China, encountered a rise in cotton prices in the early stage, and faced with the pressure of RMB appreciation and the impact of power restriction.

Enterprises everywhere have offered a magic trick to help themselves.

Change production plan contingency

Since September, domestic cotton prices have been rising rapidly due to factors such as imbalance in market supply and demand, rising international cotton prices, unfavorable climate in some areas and speculation in the market.

By the beginning of November, cotton prices rose steadily, from 18000 yuan per ton to 30 thousand yuan, or about 70%.

This is a big price increase I've never seen before. Lv Yong, general manager of Zhejiang Xian Sheng Textile Co., Ltd.

Shaoxing is one of the most concentrated cities in China's textile industry.

In the textile industry, cotton is the most basic raw material, especially in underwear, home textiles and other fields. Cotton fiber accounts for almost 60% to 70% of the manufacturing cost of the enterprise.

According to Lv Yong, as the cotton price rises too fast in the early stage, the knitting plant in Shaoxing has a turnover rate of only about 3, about 5 of the textile machine.

Many factories rely on raw materials in the past to spend their days.

However, the start-up rate of Xian Sheng light textile company is more than 8.

Lv Yong said that there are mainly two ways to hedge: first, increase product prices.

If the most conventional cotton elastic knitted fabric has been stabilized at $5 per kilogram, the price is now more than 7 dollars. Two, the product structure should be adjusted, mainly for small batch and high-grade products.

There used to be 3-5 kinds of products in a workshop, and now there are more than 20 kinds of products.

The way out for textile industry is small batch, high-grade and deep processing.

Lv Yong disclosed that now the company has many orders, but its profits are even better than last year's.

Reporter in

Yangtze River Delta region

Research found that in addition to the government and industry departments to increase efforts to maintain the current order of the cotton market, as soon as possible to curb irrational rise in cotton prices, textile enterprises across the country are also actively coping with the adverse factors brought by the price increase, and some enterprises' income even surpassed 7 last year.

Lanxi is Zhejiang's cotton textile manufacturing old industrial base, Zhejiang Lima Yunshan Textile Co., Ltd. is the largest cotton spinning enterprise in the region.

Reporters see in the enterprise, the workshop rumble, workers busy, the production line almost full.

Zhang Shugen, chairman of the board, told reporters that when cotton is soaring, enterprises can have a good market if they step on the pace.

It is learnt that after the rise in cotton prices, enterprises immediately changed the original long order mode, using short orders to avoid the rapid loss of price fluctuations.

Now is a 10 day order, once the order is down, it will buy 10 days of veil consumption at a time, locking the cost.

Zhang Shugen said that foreign buyers are well aware of the global cotton price rise, and can accept the current situation of cotton prices and product quotes.

At present, enterprise efficiency has increased by more than 70% over last year.

Efforts to enrich inventory

Although cotton prices have dropped in recent days, cotton prices barely rose for almost two or three days before, and cotton farmers' reluctance to sell them really made our production and operation face a bigger test.

Tan Guopei, general manager of Shanghai Jie Long Trading Limited, said that we can only reserve enough cash to purchase raw materials according to the customers' orders and put them into production, and inform the customers that the prices of products need to go with the market.

Shanghai

J. Long Trading Co., Ltd. is a Hong Kong trading company specializing in the production and sale of pajamas and household products. Its products are mainly exported to the US market.

Tan Guopei said: business people are most concerned about a stable market environment, but the continuous rise in cotton prices has changed the mindset of some people in this market.

Recently, the company has encountered many incidents. The company has placed orders for some cloth enterprises, contracts have been signed, and advance payments have been paid, but in the delivery date, it is not possible to get the full amount of goods stipulated in the contract.

The other side's explanation is that the price of raw materials is rising. To produce enough goods, we need to add more money.

When cotton prices continue to rise, cotton farmers are reluctant to sell. Companies may not be able to buy enough goods if they have enough money. If they can not guarantee a stable supply of goods, the production and sales of the company will be unstable. Conversely, when cotton prices fall, cotton farmers are unwilling to sell at low prices. They will wait for a better time to sell, and customers will be given a certain discount because of falling cotton prices.

Therefore, companies in dilemma will have to find ways to ensure their supply.

"At present, we have purchased 450 mu of land in Henan for the establishment of a cotton yarn factory with an annual output of 300 thousand spindles. The project is divided into three phases, one phase of 100 thousand spindles, and a printing and dyeing plant near its periphery, so that the company can guarantee the one-stop service from cotton yarn dyed fabric dyeing processing to clothing sales." Tan Guopei said.