Henan Cotton Spinning Transformation Upgrade Strain

Henan Cotton Spinning Transformation Upgrade Strain

In April of this year, China switched to direct supplements to cotton farmers after the cancellation of temporary storage of cotton, and dumped and stored cotton, which triggered a rapid decline in cotton prices and gradually became in line with international cotton prices.

After receiving the national collection and storage from the unified purchasing and purchasing system, cotton enters the market and “goes to the sea”. How will the traditional advantages of the cotton industry respond to the new changes in the market and take advantage of the major opportunities for the replacement of the old and new policies to transform itself and achieve “Nirvana?” August 11th The reporter learned from the analysis of the cotton textile industry held by the Agricultural Development Bank of Henan Province that the relevant branch organization and 40 cotton and textile companies held a meeting. It was learned that in this industry reshuffling, transformation and upgrading have become a general trend.

According to international data on cotton prices, the three-year temporary cotton purchasing and storage policy has enabled China to control about half of the world's total cotton reserves and become a price lever affecting the world cotton market.

The analysis will reveal that after the country cancelled the temporary storage of cotton and began to implement the price of 17250 yuan/ton of cotton throwing and storage on April 1, the cotton market price will be accelerated with the reserve price as the benchmark. At present, the spot price of tertiary cotton has dropped to around 17,000 yuan/ton. Affected by this, international cotton prices have also dropped. For example, US cotton prices in the domestic market are 16,500 yuan per ton, which is basically the same as domestic cotton prices.

The relevant person in charge of the Henan Branch of the Agricultural Development Bank stated that on August 31, the national cotton dumping and storage work will end. Affected by the ** market, the new cotton market price may continue to decline to around 15,000 yuan/ton or even lower, which is a positive impact on the cotton spinning industry. Reducing costs, enhancing the competitiveness of textile companies, and promoting the export of textiles are a big plus.

Order operation wins “Because of the low quality and high price of domestic cotton, we started to import cotton raw materials from the United States, Australia and other countries in 2011.” said Zhou Quantao, general manager of Wugang City Yinhe Textile Co., Ltd.

In fact, the temporary storage of cotton has made the quality of the cotton received uneven. Many companies have faced the same problems as Galaxy Textile in recent years, which has affected the expansion of cotton spinning companies.

The exemption of the temporary deposit policy allows cotton to compete “on its own” in the market, which will undoubtedly encourage cotton to improve. Experts at the meeting stated that the digestion of the State Reserves is the first step towards the marketization of the cotton industry. Under the conditions of marketization, the cotton producers in our province must fully consider the requirements of the textile enterprises on the quality of cotton and raise the awareness of quality-seeking benefit. .

At present, the price of cotton is still in a downward path. Faced with the impact of policy changes, the participating companies agreed that in the future development, cotton processing companies must produce suitable cotton for sale in accordance with the market and specific customer needs; And textile companies want to compress or control cotton stocks and prevent losses from falling prices.

"The most important thing is that the entire cotton industry chain should cooperate sincerely, implement order operations, sell by sales, set production by sales, and share risks," said a person in charge of the company.

After the transformation of the trend of the industry, after several years of industry adjustment, textile companies are seriously divided and face “shuffle”. Then, can major changes in the national cotton policy bring about the spring of cotton textile industry development?

Experts said that throwing storage has reduced raw material costs for textile companies, but downstream companies have also priced textiles accordingly. Moreover, due to the weakening of China's imports, the weakening of cotton prices will still cause impact on the domestic market. Therefore, the cotton industry must win. In the future, fundamentally adjusting the structure and upgrading the industry will become a general trend.

The relevant person in charge of the Association for the Promotion of Bank-Enterprise Cooperative Development in the Cotton Spinning Industry said that the society's rigid demand for textile products will not change. The cotton spinning industry should firstly boost confidence and pay attention to its own advantages in the process of transformation and upgrading, for example, by extending upstream and downstream. Industrial chain, to expand profit points; select specialty areas, the pursuit of high value-added products and irreplaceable.

According to reports, currently 60% to 70% of cotton spinning enterprises in our province have successfully achieved transformation through innovative technological reforms, strengthened internal management, and diversified operations, which have driven spinning volume in the province from less than 2 million spindles in 2004 to the present. 14 million ingots.

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