The cotton spinning industry is affected by the fluctuation of raw material prices

According to a related person in the China National Textile and Apparel Council, due to the concentration of external unfavorable factors, the development pressure of cotton textile enterprises was too great. In the first half of this year, the overall benefit of the textile industry fell compared with the same period of last year. The total profit of textile enterprises above designated size decreased by 1.9% year-on-year, the enterprise's loss rate reached 18.4%, and the loss of loss-making enterprises increased by 124.1% year-on-year.

As an important branch of the textile industry, the cotton spinning industry is affected by the fluctuation of raw material prices, and the industry profits show a negative growth trend. The profits of 105 cotton textile backbone enterprises fell by 52.1%.

From the survey conducted by the China Cotton Textile Industry Association on 100 backbone cotton spinning companies, at least 30% of the above-scale enterprises have already restricted production, and more than half of the SMEs have stopped production due to the high cost of cotton, and most companies have produced one. The loss of tons of pure cotton yarn exceeds 2,000 yuan.

The semi-annual report of several listed companies showed a decline or loss of profits: The semi-annual report released by Weiqiao Textile, the largest cotton textile company in China, showed that as of mid-August, the company’s revenue for the first half of this year was approximately 7.71 billion yuan. Yuan, a decrease of approximately 4.0% from the same period in 2011; net profit of its parent company's shareholders for the first half of the year decreased by 90% from the same period last year to only 54 million yuan***. Huafang Textile Co., Ltd. was in a loss-making quagmire in the first half of 2012. The company achieved a total operating income of 733 million yuan, an increase of 2.28% year-on-year; but its total operating cost was as high as 788 million yuan, and the company's net profit attributable to shareholders of listed companies was -33.76 million yuan. . The net profit of Changshan shares in the first half of the year was forecast to be around 40 million yuan, down 318.18% year-on-year.

Regarding the argument that the huge difference in domestic and foreign prices has led to a loss in the textile industry, Zhang Xianbin, head of the Department of Economic Affairs of the National Development and Reform Commission, said that the impact of the difference between cotton prices inside and outside the country on the textile industry is limited, not the most important factor causing its difficulties. The country is also taking measures to reduce the spread. . In fact, exports such as India and Pakistan, which have raw material price advantages, also show a downward trend.

Zhang Xianbin pointed out that the main impact of cotton price difference between inside and outside is reflected in the spinning process. The cost of raw materials for spinning accounts for more than 70% of the total, and export-oriented and medium-low yarns have the greatest impact. In China's textile and apparel exports, the proportion of cotton yarn exports is only 0.9%. Export yarns are neither goals nor strengths, and there are also supplementary cotton quotas, so the impact is limited.