Cotton spinning companies are trying to reduce production costs

Cotton spinning companies are trying to reduce production costs

"China Textile News" reported on May 6 that at present, the trend of non-cottonization of raw materials in China's cotton textile industry is obvious, and the proportion of chemical fiber use is increasing. In 2013, the cotton consumption accounted for about 45.5% of the total, down 6.4% from 2010; while the proportion of viscose staple fiber consumption showed a rapid upward trend, accounting for 14.5% in 2013, an increase of 5.8% over 2010; The proportion of polyester staple fiber consumption remained stable. Although this year's cotton policy has undergone changes, the difference between domestic and foreign cotton prices has gradually narrowed, and the cost of cotton used by textile companies has decreased. However, it takes a certain amount of time for China to integrate with international cotton prices, and it is difficult to adjust them in the short term. In the medium term, the labor cost gap between China and India, Pakistan, Vietnam and other countries still exists. Therefore, the trend of non-cottonization of raw materials will continue, and the pace of imported yarns flowing into China will not stop, except for non-cottonized and imported yarns. The growth rate will slow down to varying degrees.

At the same time as the pattern of raw materials changed, the yarn market also changed quietly. In the case of high-priced raw materials, the profit space of cotton textile enterprises was gradually compressed, and some cotton textile companies even suffered long-term losses. Therefore, companies actively change their business ideas, either converting chemical fiber yarns (especially human cotton yarns) or converting blended yarns (polyester-cotton-cotton-cotton-cotton-cotton yarns) to medium-high count yarns, or investing abroad to build factories.

Although cotton textile companies take the initiative to change their business ideas, they still cannot change the fact that the middle and low cotton yarn markets are replaced by imported yarns. Affected by the difference in cotton prices at home and abroad, the market pressure on low-yield products in China's cotton textile enterprises is obvious, which is a dilutive cost. The number of companies that import grey fabrics or directly import grey fabrics has gradually increased. Analysts believe that the sales situation of grey cloth and terminal clothing this year is weaker than last year, and the price will go further. With regard to the import volume of grey fabrics, this year, the growth rate of grey cloth imports will slow down, but the dominant position of cotton fabrics will remain unchanged. From January to February this year, the proportion of cotton fabrics will exceed 90%, and the proportion of people's cotton fabrics and polyester/cotton fabrics will be relatively small. Imported grey cloths are geographically concentrated, and the entire cotton cloth is one of the largest in Pakistan, and Indonesia's polyester and cotton grey cloth market is one of the most outstanding. This year's situation will be difficult to change. More will be the process of the return of cotton prices and the bottoming of gauze prices. It is recommended that companies increase the use of non-cotton products and import medium and low yarns to reduce costs.

The domestic market situation is inseparable from the influence of the international market. In the first quarter of this year, GDP grew by 7.4%, which was higher than market expectations. With regard to this analysis, the bottom of the policy has already emerged. It is very likely that the policy of “steady growth” will be introduced in the later period. The market situation in April Although not ideal, it is worth looking forward to.

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