Low yarn import or cotton spinning enterprise normalization in the short term will be under pressure

Release time：2016-6-20 9:13:57        Click times：874

Recently, according to the General Administration of Customs recently statistics show that in 2015 1~3 months, China's total imports of cotton yarn, an increase of 15.26%. In contrast, imports of cotton showed a monthly decline trend. The data show that 1~3 months of this year, imports of cotton, cotton, cotton imports in March was only tons of cotton, compared to the same period, the chain fell 42.4% and 19.5% respectively.
In this regard, there are people in the industry, the relevant government departments should pay attention and concern, as soon as possible measures to limit, regulation of yarn imports, and points out that if we don't carry out regulation by a heavy blow to the is not only small and medium-sized cotton textile enterprises, middlemen, more of the cotton farmers of cotton product polarity, stabilizing cotton growing area of great harm.
The textile and apparel magazine reporter in the interview to understand, in fact, the cotton yarn imports began the phenomenon of incremental as early as the end of 2012 is already beginning to show, explore the reasons, the majority of respondents thought is that the result of the State Reserve high cotton prices. But now influence on domestic cotton spinning enterprises, a lot of people think cotton yarn imports may has a big squeeze and impact of domestic low yarn production enterprises, but small effect on high count yarn market.
Import of cotton yarn normalization irreversible
As is known to all, our country has the quota limitation to the cotton import, the foreign cotton is difficult to flow into the country. A few years ago, even if there are foreign cotton port shore, but rarely to port. And different is that cotton import and no quota restrictions, so far, as long as the inside and outside mianjia difference narrowed, cotton still a large number of imports.
In September 2011, China began to implement the policy of temporary storage of cotton and abroad has been according to market supply and demand relations run cotton prices, which led to in in recent years, domestic cotton prices upside down phenomenon. For example, in 2012, the national cotton reserve price is 20400 yuan / ton, 2013 is 20400 yuan / ton, while imports over the same period cotton prices even lower than the domestic price of cotton. During this period, domestic and international spread of cotton at the most can reach 6000 ~ 6500 yuan / ton. In this regard, some domestic production enterprises and trading companies began to purchase imported cotton yarn, yarn business in India, Pakistan and other countries is aimed at the Chinese market, make every effort to sell their cotton last year, Indonesia also began to enter the Chinese cotton market.
In order to allow domestic cotton prices gradually return to the market, 2014 countries have abolished a temporary policy for purchasing and stockpiling cotton, and implements the target price of cotton pilot reform in Xinjiang, target price of cotton in 2014 for 19800 yuan / ton, market price of less than 19800 yuan / ton, the government of farmers were the corresponding subsidy.
However, the inauguration in Ji Liuyan of Hangzhou, a textile enterprises in the textile and apparel magazine reporter interview said: "in the future, the station at any point in time, amount of yarn imports more than cotton will be an inevitable trend."
For this kind of judgment, he also gives detailed analysis: "at present, domestic cotton farmers grow cotton enthusiasm is not very high, in the middle and lower reaches of the Yangtze River, Yellow River Basin cotton producing regions are shrinking, Xinjiang is also shrinking, a lot of land is the industrialization and market, because of the 'and food fight' this argument is proposed, in 2014, the government level has passed relevant policies to protect farmers in Xinjiang region, but the mainland has realized the greenhouse flowers, vegetables benefit to much better than that of cotton, so government and not too much intervention." He believes that the future domestic cotton may be as long as there is enough military strategic reserves can be, especially with the development of chemical fiber industry and some Imitation cotton even super Imitation cotton products, civilian areas with cotton may is completely replaced by the cotton imitation products.
Indeed, actually in 2010 / 2011 cotton prices soared, the majority of spinning enterprises reduces the proportion of the use of cotton, in favor of the polyester. And, with the spread of cotton spinning enterprises gradually widened, with polyester volume also gradually rise.
When it comes to yarn imports for domestic enterprises in the cotton, China Cotton Textile Information Network Analyst He Xiaosi in the textile and apparel magazine reporter interview said import yarn has a direct impact on the domestic market is by the impact of domestic low yarn products, according to statistics, affected by the impact of export yarn, at present domestic C32s yarn production only accounted for about 25% of total output.
According to customs statistics, in 2014 the whole year China's total imports of cotton yarn. According to industry analysts, China's annual output of cotton yarn in about about 6000000 tons, the proportion of imports of cotton yarn of nearly 1/4. Cotton imports in the first quarter of this year, it has been close to 600 thousand tons, if this projection, the annual import volume may exceed last year.

He Xiaosi, the analysis believes that the first quarter of nearly 600 thousand tons of cotton yarn imports or will directly lead to the whole year to reduce by more than 2 million 300 thousand tons of domestic cotton. And with the number of cotton import record high and low yarn imports will also steadily higher, or it will in a certain extent curb domestic cotton consumption.

In the short term will be confined to cotton spinning enterprises
"Currently, yarn imports mainly concentrated in the 40s, especially 32S below the main products. As a matter of fact, after the Spring Festival this year, domestic 32S following products have not rebounded, air spinning, siro spinning products has been weak sluggish, up to now are not bottomed signs."
He Xiaosi said that at present domestic cotton spinning enterprises still do not feel to this "warm boiled frog like lukewarm situation, if the government of the cotton market not completely liberalized, 3 to 5 years, domestic and international cotton prices hang upside down is difficult to reverse and cotton yarn imports trend is irreversible, in the future, cotton yarn imports will become normalized, can change only incremental annual imports growth rate.
Actually, a lot of from my junior high school in the East and southeast of China, cotton yarn factory enterprises believe they due to imports of cotton yarn on the price has certain advantages, so more in small weaving factory, printing and dyeing factory and garment factory will "give up domestic, buy imports, reducing capacity, enough to be seen using imported cotton yarn, has become a trend.
Light industry researcher Zhu Qinghua investment consultants in the textile and apparel magazine reporter interview said, cotton yarn imports in recent years more than cotton imports, mainly due to foreign cotton price competitiveness has been further enhanced. On the one hand, the raw materials, labor and rental costs of foreign cotton production are relatively low; on the other hand, the cost of production of cotton yarn in China is gradually increasing, and the gap between the quality of cotton yarn and the quality of cotton yarn is not very large.
Zhu Qinghua, cotton yarn imports larger, to cotton spinning enterprises and farmers will bring greater impact, is not conducive to the development of China's textile market, but this is the choice of the market. He said: "in the low-end cotton yarn imports more than imports of cotton is the result of market competition, although in a certain period of time will cause pressure to the cotton textile enterprises in China, but also can forced the rapid reform."
For imported cotton yarn, the attitude of the domestic related enterprises are not the same, some companies believe that the impact of imported cotton yarn; but some companies believe that domestic enterprises have gradually to the low yarn Market abroad. However, the current and domestic low cotton yarn is very different situation weakened, continued selling domestic more than 40s yarn products, even some bleach kits yarn also appeared in the stockout situation. We can see that the domestic yarn advantage above 50s, especially large textile enterprises with high counts yarn and lower yarn less production, reflecting the trend of textile of our country from low-end to high-end transfer.
He Xiaosi pointed out: "32S currently international prices at around 20500 yuan, and before the Spring Festival this year than fell three or four points, per ton price fell nearly 600 to 800 yuan / ton, but more than 40s yarn, after the Spring Festival rose 500 to 1000 yuan / ton, is slightly affected by the imported yarn."
Forced to force the domestic cotton yarn count
Ji Liuyan think cotton spinning enterprise is confronted with at present is a kind of market forced, "like the people's Bank of China Governor Zhou Xiaochuan said at the Boao Forum, some traditional industries may will be a lot of troubles and problems in the future, some products may will be eliminated." He thinks that exist for a long time will forced yarn to make two kinds of actions: a strong capital and technology enterprises going out, another is to remain in the domestic enterprises, had to do low-end yarn to equipment upgrades and to develop in the direction of automation production. It can not only reduce labor costs, but also can enhance the enterprise the connotation.
According to the Chinese Cotton Association statistics, in 2015 China's cotton planting area of 48 million 430 thousand acres, down 24%. Also based on the anticipation of El Nino weather extremes, preliminary estimates 2015 per unit area yield is lower than in 2014, 2015 our production will show a downward trend, preliminary estimates range is about 10%. Consumer demand is expected to improve, an increase of 1.5%~2%, tightening supply situation.
In fact, at present, with the control of cotton imports, the impact on the domestic impact of imported cotton was significantly reduced. At present, the import price of cotton within the quota 11195 yuan / ton, lower than the domestic price of cotton, imports are still dominant, but the amount of the quota is only 890 thousand tons. The first three months of imports of cotton 450 thousand tons, has accounted for half of the quota.
The substitution of imported cotton yarn for domestic cotton yarn also influences the demand of cotton. From the point of view of the situation in previous years, 5, June is cotton yarn, cotton demand relatively high season, downstream demand gradually improved, and domestic demand for cotton yarn improves, traders imported cotton enthusiasm obviously improved this year in seasonal consumption stimulation, some imported shipment of cotton yarn have been by order to six or seven months.

Zhu Qinghua this also gave the cotton spinning enterprises prescription: since more than cotton yarn imports will become a norm, the price advantage of domestic low cotton yarn will also become increasingly weak. In this regard, cotton spinning enterprises in the current situation urgently business transformation, will focus on the high-end products. Cotton spinning enterprises only continuously improve product quality, enhance product innovation, to make up for the impact of declining price advantage. If the success of the transformation and upgrading of textile industry, the future development of space is still large.
In fact, cotton spinning enterprises the ultimate way out in the final analysis is to the product from 32S, 40s mainly to the 50s and 60s yarn or combed yarn adjustment; by all cotton yarn to blended, differential fiber, new fiber (such as bamboo fiber yarn and Tencel, modal and so on); new compact spinning, the turbine spinning, siro spinning and so on equipment, and improve the yarn count, improve yarn quality.
In fact, relatively speaking, the advantages of the current domestic yarn is supply, quality and stability, business focus on reputation, after sales service has a certain guarantee, in addition, the industry chain integrity is one of the advantages. If the domestic cotton prices fell further, and cotton spreads narrowed, so domestic yarn advantage will be highlighted.

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