Since the beginning of this year, under the impact of the global financial environment and the domestic epidemic, the entire cotton spinning industry has encountered difficulties. Especially after the U.S. ban on Xinjiang cotton fabrics was officially implemented, foreign trade companies have been in an even more difficult situation. Facing the uncertain market environment, what problems have downstream textile companies encountered, and how should they respond?
The reporter interviewed several cotton spinning people in Anqing, Anhui Province. They said that an epidemic broke out in some areas of Anhui Province recently. This time it was mainly concentrated in Si County, Suzhou City. The outbreak area is far from Anqing. The production of enterprises in Anqing City is normal and people’s lives are not stable. affected. At present, under the measures of precise control and dynamic clearing, areas without epidemics in the same province will not be affected by the epidemic in neighboring areas. Only the movement of people in the affected areas will be controlled. Therefore, the impact of the epidemic on corporate production is now weakening.
During the understanding process, a cotton spinning person told reporters that the current biggest problems for enterprises are reduced orders, inventory backlogs, and lack of confidence in the market outlook. They don’t know how long such a deserted market will last.
It is understood that since the beginning of this year, the domestic cotton market has experienced a “roller coaster” market. The price of Zheng cotton has dropped from a high of around 22,000 yuan/ton to less than 17,000 yuan/ton. As cotton prices have fallen sharply, cotton yarn prices have also fallen sharply. Adjustment. Prices of raw materials and finished products have plummeted, and downstream industries are in trouble.
The cotton spinner told reporters that with the sharp fall in cotton prices this year, many companies are facing losses, especially those with high cotton costs. A local company bid for a large amount of reserve cotton last year. The cost of cotton was relatively low, so it withstood the market impact when yarn prices fell. It was able to maintain normal production and sales from January to May this year. From June onwards, operating pressure increased, and corporate sales The difficulty has increased significantly. First, customers have severely lowered the price of cotton yarn; second, they have put forward higher requirements for the quality of cotton yarn; third, orders have dropped significantly.
There is a set of data worthy of attention. According to the “May 2022 Financial Statistics Report” released by the People’s Bank of China in June, at the end of May, the balance of RMB deposits was 246.22 trillion yuan, a year-on-year increase of 10.5%. The growth rate was higher than that at the end of last month and The same period last year was 0.1 percentage points and 1.6 percentage points higher. In the first five months of this year, RMB deposits increased by 13.99 trillion yuan, an increase of 3.8 trillion yuan year-on-year. Increased bank deposits represent underconsumption. In addition, China’s consumer confidence index also fell below 90 for the first time, reaching the lowest value in the past six years, showing that consumers lack confidence in the market outlook.
Faced with the problems of raw materials and sales, the cotton spinner put forward three suggestions to the government: First, subsidize the electricity used by enterprises. The peak electricity price used by local enterprises is higher than 1.0 yuan/kWh, and the low valley electricity price has reached more than 0.4 yuan/kWh, which puts great pressure on the production costs of enterprises. When the profit of the product is high, the enterprise can still bear it. When there is no profit or even loss in spinning, the electricity bill has become a big burden for the enterprise. At present, the electricity bill of the enterprise is more than 3 million yuan a month, which is tens of millions yuan a year. .
Secondly, it is recommended that the government subsidize part of social security. According to the current regulations, my country’s pension insurance units and individuals bear 20% and 8% respectively, which is the highest among the five social insurance payment proportions. It is recommended that the government can provide some subsidies to the pension insurance part borne by enterprises within a one-year period to reduce the cost of enterprises. tax burden.
The last step is to reduce land taxes and fees. According to the reporter’s review, my country’s land use tax is a tax levied on units and individuals that use state-owned land based on the land area used. Land use tax = actual occupied area of taxable land × applicable unit tax. Generally, the annual tax per square meter is 1.5 yuan to 30 yuan in large cities; 1.2 yuan to 24 yuan in medium-sized cities; 0.9 yuan to 18 yuan in small cities; and 0.6 yuan to 12 yuan in counties, organized towns, and industrial and mining areas. For an enterprise covering an area of hundreds of acres, if a certain amount of land use fees can be reduced or exempted every year, it will also reduce the operating pressure of the enterprise.
In addition to hoping that the government can alleviate certain tax pressures, the company has also taken cost reduction measures. First, it is canceling day shift operations and only operating night shifts to avoid peak electricity bills. Second, it is lowering the operating rate to reduce raw materials, product inventory and Worker wage costs.
The measures taken by the above enterprises to save themselves are to treat the symptoms rather than the root cause. The fundamental method is to promote market consumption and restore the confidence of enterprises. Therefore, under the current situation of stable supply, the recovery of consumption determines the future direction of the cotton market.
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