The textile industry affected by cotton prices
In Henan, companies such as Xinye Textile, Wugang Yinlong, Jiaozuo Haihua, Tongtai Textile, Nanyang Textile, Xiayi Hengtian Yongan and other enterprises have formed The huge production capacity allows Henan spinning to occupy an important position in the country.
In March this year, these large textile companies felt the market turmoil caused by the roller coaster price of cotton. Since the second half of last year, global cotton prices have gradually risen, rising from 12,000 yuan/ton. By the end of February and early March this year, they were once as high as 17,000 yuan/ton. But at the end of March, H&M’s refusal to use Xinjiang cotton caused a stir. From the beginning of March to the end of March, the main cotton futures contract on the Zhengzhou Commodity Exchange dropped from nearly 17,000 yuan/ton to 14,200 yuan/ton, a drop of more than 2,000 yuan/ton.
“After the price of cotton fell, the market mentality of buying up rather than buying down became serious, orders decreased, and cotton spinning mill inventories increased, which in turn affected the yarn price in the industry chain.” Dance in Henan Province Zhou Quantao, Party Secretary and General Manager of Steel City Yinlong Group Company, said that the textile industry has been known as “Gold, Three, Silver and Four” over the years, and the entire chain is rushing to produce. However, in late March this year, the yarn production and sales of Wugang Yinlong The rate is less than 50%, the yarn inventory reaches 15 to 20 days, and the inventory days are twice as long as in normal years.
It is understood that Wugang Yinlong Group Co., Ltd. is a large-scale textile enterprise integrating textile, plastic weaving and import and export operations. The number of yarn spindles reaches 600,000, and the annual More than 70,000 tons of cotton are needed, and the annual output of high-grade cotton yarn is about 60,000 tons.
According to Zhou Quantao, according to previous years, March is the time for zero inventory. Because business is good at this time, there are many orders, and market demand is large, the inventory production schedule must be arranged to 4 The month has gone.
Henan Tongtai Textile has also felt the impact of this roller coaster price.
Tongtai Textile is also a large consumer of cotton, using 40,000 tons of cotton every year, of which Xinjiang cotton procurement accounts for about 85%. Li Yangguang, chairman of the company, told reporters that the company is currently in a state of zero inventory because it is still producing orders before the Spring Festival. But as cotton prices fell, the textile market cooled significantly. Judging from the new orders received later, the order volume has dropped by about 35%. Downstream customers, whether they are foreign trade companies or domestic trade companies, have seen a decline in orders, and the wait-and-see mood is obvious.
The impact of cotton prices on the textile industry is global
We feel that weaving factories, With the changes in orders at the garment manufacturing side, textile companies are also actively expanding their channels. The market generally believes that “stability” may be the main theme of the textile industry in recent times.
Jiaozuo Haihua Textile is an old textile company that has been deeply involved in the textile industry for 50 years. It was also a member company of BCI (Swiss Better Cotton Development Association). More than 90% of its raw materials are purchased from It is Xinjiang cotton, and nearly 50% of its customers are processing companies for overseas clothing brands.
After H&M refused to use Xinjiang cotton, the company decisively decided to withdraw from BCI. According to the company’s general manager Cao Ming, as early as last year, overseas brands’ prejudice against Xinjiang cotton had been shown intermittently. Many of the company’s foreign customers have successively sent letters to Haihua Textile, requesting that the yarn provided does not involve Xinjiang cotton. Against this background, foreign orders have stalled for a time.
According to Cao Ming, since last year, the company has begun to adjust its sales structure and prefer domestic sales. After a year of adjustments, the company’s products are now basically supplied for domestic sales. Judging from current operations, although sales have dropped slightly, they are not bad. There is almost zero inventory of yarn, and orders have been received for June.
Li Yangguang said that from the perspective of the global textile market, the market is inseparable from Xinjiang cotton. The European and American markets have become dependent on China. The cotton market is currently only affected in the short term and will soon be affected. recover.
After the twists and turns at the end of March, Wugang Yinlong has also felt that the market is developing stably. According to Zhou Quantao, orders from downstream weaving factories have remained normal, especially the demand for domestic orders is improving.
Enterprises must cultivate their own brands
“Henan is not only a major textile province in the country, but also a strong textile industry. Province.” Yuan Jianlong, executive chairman of the Henan Textile Industry Association, said that taking Anyang alone as an example, there are more than 4,000 textile companies, and “going to the mountains and rural areas” (Pingdingshan and Xinxiang) are two areas with very complete textile industry chains. .
A set of data can provide a glimpse of the strength of the Central Plains textile province: Henan has 20 million spindles, ranking first in the country; yarn output is 3.23 million tons, ranking fourth in the country ; The pure cotton yarn output is 2.99 million tons, ranking first in the country; the cloth output is 1.3 billion meters, ranking the ninth in the country; the chemical fiber output is 558,000 tons, ranking the tenth in the country; the annual clothing output is 1.1 billion pieces, ranking eighth in the country There are 1,519 cotton textile enterprises above designated size, occupying the highland of cotton textile in the country.
The main purchasing area for cotton required by textile companies in Henan is Xinjiang. Currently, more than ten companies in Henan have cotton processing plants and ginning plants in Xinjiang. Only Xinye Textile in �There are multiple factory areas in Xinjiang.
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