Different cotton prices: brand clothing companies laugh, textile companies suffering

"Fortunately, we are still alive and we have breath. Finally wait until the bottom of the cotton price, and hope that it can stabilize and increase afterwards." Fan Junfeng, general manager of Zhejiang Xinlang Textile Co., Ltd. interviewed by reporters, repeatedly made a few words sigh. On that day, it was the first day that the country initiated the 2011 temporary cotton purchase and storage. Fan Junfeng optimistically predicted that the government's minimum protection price policy will play a role in stabilizing cotton prices.

In the past year, due to the ups and downs of cotton prices, its upstream textile companies have also experienced severe hardships, and there has been a large number of small and medium-sized textile enterprises in the market facing life and death. However, it is rather strange that the apparel companies did not seem to be involved in this price game, but the price increase against the market.

Ups and downs also died. Since the cotton price peaked in February this year, a paper plan from the National Development and Reform Commission and other eight departments at the end of March quickly cooled down the price of high-calorie cotton, and it has since entered the plummeting rainy season. By the end of August, the price of cotton had fallen below the national temporary storage price of 19,800 yuan per ton, and the rate of decline was close to 50%.

“Our textile companies have been greatly affected by this, and the small factories have all stopped work, and the big factories can barely support it,” Fan Junfeng said with excitement. “Last year the whole industry did earn a lot of money, and the peers laughed, but one Suddenly he called for hanging."

The fall in cotton prices was originally good for the downstream companies, but everything was ruined by human greed. Just a year ago, the cotton market was entirely another situation. The price of cotton can be described as “rising”. It is almost a day's price. The high price of cotton has caused the bankruptcy of a group of weak-sized cotton spinning companies, but also The other bold textile companies made big fortunes. They took the risk of taking up a large amount of cotton from production funds and made a fortune, but this game of drums and flowers suddenly met the ceiling of March this year. “The cotton yarn I bought the previous month will have to lose two or three dollars per metre in the next month, and will lose three or four yuan in another month. I can't sell my hands and feel even more panicked. I don’t know the price of cotton. It will fall to what extent, selling and not selling are losses." Fan Junfeng told reporters that at that time the volume of large enterprises produced cotton yarn are sold less than the price of cotton at that time, the market is too expensive, and many cotton enterprises Have at least two months of inventory in hand.

It is understood that many large-scale enterprises in the industry have also been affected. For example, Huafang Textile, Fengzhu Textile, Weiqiao Textile and other enterprises have many high-priced cotton in their hands, which directly affects their willingness to purchase in the coming year. It is even rumoured that Huafang Textile's reorganization may have stopped because of cotton prices.

It takes time for the market confidence to recover. “The state will initiate the temporary purchase and storage price of cotton and will purchase it at the bottom price of this price. It will give cotton farmers a sure-footed pill and indirectly determine the bottom line of this year's cotton price.” Liang Daya, general manager of Bingtuan Cotton and Cotton Co., Ltd. The future trend of cotton prices is very confident, he believes that from now on, cotton prices will show a wave of slowly rising trend, but taking into account the current and future periods of capital and policy side bearish, the cotton price cap should not exceed The peak of cotton prices in February this year.

"We can't judge the trend at the moment. This year's cotton price is too strange." The person in charge of a cotton mill in Shandong told the reporter that textile companies are not afraid of high cotton prices. They are afraid that the cotton price will be unstable. As long as the cotton price is stable, the cotton sales volume is also It will always maintain a stable state. Both the seller and the buyer can buy and sell at the right time according to their own stocks and funds. The market is relatively fluent, rather than being confused when prices are unstable.

However, some people are less confident about the future trend of cotton prices and even the entire cotton spinning market.

An interview with the reporter found that some industry professionals were affected too deeply by the fierce fluctuations in cotton prices, and they talked about the emotional tendency of “discoloration” of cotton. When the owner of a textile company in Guangdong received a phone call from a reporter, he immediately changed his face when he heard the topic of cotton prices. He said with excitement, "We must all be dead and talk about what (impact).” And hung up badly phone.

The person in charge of a textile management department in Xinjiang also refused interviews with reporters. He said: “This topic can't be finished for three days and three nights. I can’t tell you that if I say it badly, it will have a great impact. I’m sure "The country is a cotton base. In the past year or so, cotton farmers have experienced great joy and sadness. In a sense, Xinjiang's cotton and textile markets are the epitome of the entire industry."

In general, there are several reasons for the pessimists: First, despite the policy to close the reserve price, the demand is not strong, the reduction in corporate orders will restrict the industry's prosperity, and the second is the slow recovery of the global economy. * Factors such as appreciation, tightening credit funds, and rising costs have slowed down the growth of the industry. Third, including China, this year, the world's cotton producing countries have seen bumper harvests, and the supply of cotton is far greater than the demand. Therefore, looking ahead to the market, cotton prices and cotton spinning market are still facing uncertainty.

Clothing enterprises stay outside the mystery In May and June of this year, the majority of the domestic apparel companies in the 2011 fall and winter ordering meeting was completed, from a number of companies' ordering meeting on the fall of new autumn and winter prices will be news, including Li Ning, 361 degrees, Anta The rumors of price hikes by other sports brands are even more buzzing.

The news that clothing companies’ product prices have risen has made most textile companies unhappy, and Fan Junfeng said: “We are suffering in the upstream. Why can they stay out of the question? Not only that, they heard the price of cotton fell, and they desperately kept us down when purchasing cloth. And they are raising prices. What is the reason?"

In the apparel industry, there is another explanation. Wang Jinqiao, chairman of Beijing Gege Qipao Co., Ltd., said that this year's increase in clothing prices is not due to raw materials, but due to the increase in labor costs and transportation costs. Wang Jinqiao told reporters that in fact the cotton price is only a part of the clothing price structure, accounting for less than 20%, and this year's labor costs are rising by 80%, so the fall in cotton prices can not affect the clothing price.

Except for various external factors, the unreasonable industrial structure of China's cotton textile industry has also been criticized. The industry chain of the textile industry belongs to the date-nuclear type, and there are fewer companies in the R&D and marketing links at both ends of the industrial chain, and there are many companies in the middle-end manufacturing segment. The profits of the manufacturing sector are relatively thin, which is the most constrained by the cost, and it is also the most vulnerable to the fluctuation of raw material prices. In particular, the cotton spinning industry is mainly based on small and medium-sized enterprises, and its ability to withstand market risks as a whole is relatively weak. Once there is a sign of trouble, its bargaining power to the downstream is rather weak. This is why cotton prices have suffered serious losses after the cotton prices fell. the reason.

“The price of branded apparel has long been measured without cost. As long as quality is maintained, even if the price is increased, customers will accept it.” Wang Jinqiao suggested that textile companies should learn from branded apparel companies and increase product addition through R&D and branding. Value, strengthen their bargaining power in the industrial chain.