Some Small And Medium-Sized Textile Enterprises In Shandong Prefer To Stop Production Or Purchase Cotton.

Cotton prices continue to skyrocket.

The reporter was informed that at present, hundreds of small and medium-sized textile enterprises in the "China's famous textile city" in Gaomi City, hundreds of enterprises due to the rise in cotton prices led to the rise in costs, into production or downtime.

At the same time, enterprises can only rely on their own digestion of the rise in costs.

Ning stops production but not supplies.

Entering the textile industry for nearly ten years

On the 27 th of this month, the cotton price B index (grade 328), representing the domestic cotton price level, reached 22032 yuan / ton, the highest in 10 years.

In the futures market, Zheng cotton rose to a record high of 22 thousand yuan / ton on the 27 day after breaking through 18 thousand yuan / ton in early September, rising 20% in January.

Dan Baocheng told reporters 27 days ago that many small textile enterprises now prefer not to produce or buy goods. "The price is high and the risk is great," he said.

Gaomi City SME Bureau responsible person told reporters 28 days, at present, nearly 1000 small and medium-sized textile enterprises in Gaomi City, hundreds of enterprises because of cotton prices soaring, the appreciation of the renminbi and other unfavorable factors, is in a state of production or downtime.

"Let alone the small and medium-sized enterprises, that is, if large textile enterprises purchase goods according to the current cotton prices, there is no profit whatsoever."

The head of Limited by Share Ltd Import Department of Fu Shi group said.

Fu Shi home textile is currently used for pre storage.

"We expect cotton prices to rise by 1000 yuan / tonne over the same period, and now it has risen by more than 5000 yuan / ton.

At that price, which company dare to take orders?

Worries about foreign trade

Dan Baocheng also said that some foreign businessmen even asked the domestic textile enterprises to use imported cotton, the reason is that there are some problems in the quality of domestic cotton.

"Therefore, enterprises will lose their pricing power on two aspects of cost and product."

Dan Bao Cheng said that enterprises should pfer the cost of rising cotton prices to products, but because of the dependence on foreign markets, once the price is raised, orders may flow to India, Pakistan and Vietnam. Therefore, domestic enterprises can only reduce their costs by compressing their own profits.

It is reported that in this round of cotton price rising process, some speculative funds have been stockpiling goods in the spot market or in the two markets of China and the United States, which have a certain impact on the market by placing orders through stock orders.

At the same time, there is no shortage of foreign enterprises behind the domestic cotton price speculation.

It is understood that at present, many large foreign cotton traders such as Louis Da Fu have obtained the license to participate in the acquisition, processing and operation of cotton in China.

Nowadays, textile enterprises are most worried about how long this unreasonable high price of cotton will last.