Quanzhou's Textile Industry Is Suffering From Profits.

A few days ago, the media reported that the average yield of 42 cotton demonstration tablets in Shandong was 102.9 kilograms per mu. However, unlike the good news, recently, from the cotton growers to the cotton processing enterprises to the cotton textile industry, the voice of the whole industry chain is "bad market".

From the beginning of the year, nearly 35000 yuan per ton, then quickly dropped to 19000 yuan, cotton prices rose rapidly this year, the cotton spinning enterprises have encountered unprecedented problems.

Similarly, polyester fiber and other chemical fiber raw materials prices have also seen a substantial decline.

The price of these raw materials fluctuated sharply, and did not make Quanzhou textile enterprises jump for joy. Instead, they fell into the loss of profits caused by inventory.

"Before, cotton prices have been rising, and people are under a lot of pressure. Now cotton prices have been falling, and it hurts.

It has been such a large fluctuation that enterprises will be very passive if they fail to grasp the time well.

Hung Po, chief executive of the weaving department of Fujian Jinxing group and head of the textile machinery company, said.

The point of time described by Hong Pu is the purchase of raw materials at low positions and the measurement of inventory.

It is understood that, when cotton prices just fell, many enterprises overstock, resulting in a downward trend, had to face growing cost pressures.

The chemical fiber industry is also faced with a downward trend in the price of raw materials.

The market price disclosed by professional websites shows that most of the chemical fiber raw materials such as polyester fiber are at a low price in the near future.

"If the enterprise receives the big list and long list, but does not control the use of raw materials, then it is better to not pick up.

Because if you use high priced raw materials in stock, the profit will be reduced because the price of raw materials in the market is down, and the terminal price can not be raised.

Zhang Jiayi, general manager of Dafa technology group, said.

Many textile industry practitioners, including the two companies, believe that the volatility of raw material prices will affect the good links of various links in the Quanzhou textile industry chain.

"A large number of adverse factors such as sharp fluctuations in raw material prices, appreciation of the renminbi, tight money, tight electricity consumption, rising labor costs, undesirable demand in the international market, and increasing uncertainties" have led to many enterprises showing a decline in production, sales and profit growth.

"We always feel that the decline in raw material prices is good for businesses.

Little does it know that it is more dangerous.

At the very least, the adequacy of liquidity is a big problem, which means that textile enterprises can survive safely this winter. "

An industry insider analyzed.

These people said that when the inventory could not be digested and new orders did not grow, the capital flow of enterprises would not be easy to fall into.

However, in the reality of poor financing channels, some textile enterprises turn to private financing and increase the cost of financing.

National Bureau of statistics data show that in 2011 1-8 months, China's textile industry financial costs increased by 34.49% over the same period last year.

"This is even more important in Quanzhou.

Now, at the end of the year, if there is no money back, the situation will be worse next year.

The above said.

In order to ensure adequate capital flow, textile enterprises such as de Rong textile and Dafa technology have taken countermeasures.

"Always pay attention to the market price of raw materials, change the production mode to sell products, and speed up the production and delivery efficiency.

When purchasing regular varieties in the off-season, pay attention to the right amount of funds in order to make good capital reserves.

Hong Pu introduced.

Dafa technology has adopted a way to strengthen production site management, control the use and management of raw materials, reduce unnecessary loss of raw materials, and save production costs.