For five working days broke 19800 yuan/ton, part of the "go to inventory" talked of cotton yarn as cotton production enterprises and high prices

September is 2011 cotton in advance MianJia open the door, the green. By September 7,, the domestic MianJia continuous five working days less than national publication of the cotton temporary ShouChu fixed price 19800 yuan/ton. Therefore, the national development and reform commission decided from within, opened the first 8 temporary ShouChu cotton.

MianJia "diving", originally for textile enterprise is positive, but the dongguan some textile enterprise but malaises emerge. From our correspondent yesterday interview the circumstance looks, some talked before purchase high cotton high enterprises, which is at stage, MianJia due to inventory of enterprise management, wild fluctuations caused great influence, even at a loss in production, enterprise in cotton yarn as cotton price high.

1 the pain "digest" high price of cotton procurement

Data shows, September 7,, China's cotton price index from the peak of MianJia round 31000 yuan/ton fell to 19502 yuan/ton, dropped by almost 40%, this makes the dongguan wei Po textile clothing factory (hereinafter referred to as "wei Po) general manager ZhangJinXian breathed a sigh of relief. Since the second half of last year, because since MianJia continue to rise, wei Po raw material costs rose all the way. ZhangJinXian said a sharp rise in the MianJia, once let enterprises are faced with great operating pressure.

In February this year, because of the country has issued a series of since control policy, cotton prices went way down, this month by 7, has been for five days ShouChu below national temporary price 19800 yuan/ton.

MianJia down to the lower reaches of textile enterprises should be a good news, but the dongguan also has some enterprise still struggling. According to understand, years ago round of MianJia peak ever made some small textile enterprise be eliminated. Some enterprise in order to deal with MianJia rise, have to purchase in advance a lot of cotton, many enterprises is still in time to inventory.

The garment industry association secretary-general ChenYaoHua says to the reporter, some enterprise before buying a lot of cotton, high now with the cotton prices keep falling, have had the part enterprise caused the impact, the production of cotton yarn can even out the price of cotton. "I understand the situation is now some textile enterprise order lose in do, but the capital turnover also problems." ChenYaoHua said.

In addition, according to shengtai knitting garment company director YeZhaoLiang introduction, he has a few do textile clothing business friends, all the way in the cotton price unconventional stage, stocked up on a lot of cotton, some for enterprise production, most will be used to speculate. "Some enterprise with a large amount of money to purchase cotton, then opportunists changed hands profit." YeZhaoLiang says.

With the MianJia plunged and for these enterprises paid a heavy price. Because of the cotton occupied a large amount of money to hoard, and MianJia decline, enterprise in the hands of a substantial depreciation of cotton, long life, so the money collecting capital chain could collapse at any time off.

2 improve bargaining power to deal with MianJia fluctuations

In September 2011 the annual cotton is the first of the month, then in October will be listed showed period.

ChenYaoHua analysis says in October, cotton supply can have a significant growth. At the same time, because of the economic downturn, Europe and the dongguan textile enterprise exports has been slowing trend, enterprise of cotton demand will be dropped, supply and demand in the future to cotton prices for some time won't have too big change.

This give the dongguan's textile clothing enterprise ate a sides. The MianJia sharp fluctuations in enterprise pain in the neck, ChenYaoHua once seemed to points out, compared with high MianJia, textile enterprise more worrying is actually MianJia fluctuate.

For how to avoid the risk of MianJia fluctuations in, ChenYaoHua advice is, the government level should regulate the commodities market, from the aspects of system design and operation, stable rationalization of market price, to provide the interests of the enterprise.

For companies, industry experts suggest says, should discard rely on a single raw material production, can try other recognized by the market of the raw material, advocate diversified management, so as to improve the added value of the products, improve the ability to resist risk.

And ZhangJinXian introduction, wei Po deal with MianJia fluctuation way of doing that is to insist on the zero inventory. "In negotiations with the customer, only think reasonable price will receive orders, then according to the order to buy cotton, this needs some bargaining power." ZhangJinXian explain says.

S enterprise view

Cotton ShouChu temporary is unfair

By September 7,, as the country MianJia continuous 5 working days ShouChu fixed price lower than the cotton temporary 19800 yuan/ton, the national development and reform commission issued a circular, a decision from September 8, opens up for the first time ShouChu cotton temporary. The news sent immediately turn, caused the industry theory, and quickly and heat to differentiate into two camps.

Some textile enterprise officials think, the move does not give consideration to the interests of the downstream enterprises, so the textile enterprise first appeared to rebound. ZhangJinXian says that, in MianJia era, textile enterprise high bear a huge business, and when MianJia pressure drop, now they with administrative measures, this obviously for intervention textile enterprise is unfair.

ChenYaoHua argued for the move. He thinks the government launched cotton temporary ShouChu system, in the short term to downstream of the textile enterprise will be a fair deal, but this is to guarantee a cotton farmers interests, thus ensure the supply of upstream, only supply enough to MianJia stable, so in the long run is benefit to the enterprise. He suggested that, how to balance all about the benefit of the group, relevant departments should grasp the degrees.

Source "the Chinese textile nets"

Edit: lara