The “credit business model†in the industry has invaded all aspects of the textile and garment industry. The dealers pay the bills to the agents, the clothing companies pay the bills to the fabrics, and the fabric dealers pay the bills to the textile mills. This is a loop, and there is a problem in one link, which will cause the upstream and downstream resonance.
Therefore, upstream companies have tried to improve the situation. Some enterprises have come up with a preferential way to attract each other to pay early, that is, if the advance payment will give the other party a discount, this way makes the other party's psychology more acceptable and obtains the favor of some small and medium-sized enterprises. The “difficult collection†situation has been somewhat relieved. In addition, in addition to just the need, textile companies are cautious, more wait-and-see or small purchases. Some textile companies are forced to take a holiday or compress capacity due to tight capital and rising prices of downstream gauze.
According to the offices of the National Cotton Market Monitoring System, in December 2016, the smog weather in the Yellow River Basin was more, and the decline in cotton prices in December severely affected the cotton purchase progress. In addition, despite the end of the year, the enthusiasm of the textile companies to replenish the library is not high, and the financial pressure is relatively large, and the business model of credit accounts is common. Details are as follows:
In December, the smog weather in the Lulu and Henan areas was high. Every time there was severe smog, the country roads could not be seen clearly, and it was difficult to travel. The cotton purchase station closed and closed. Due to the small amount of acquisitions, the acquisition work was mostly stagnant. In addition, the influence of smog on the internal micronaire value, strength and length of cotton is not great, but the fog and dust of severe smog weather have certain influence on the color and grade of cotton.
At the end of December, the price of cotton futures market fell sharply, with a drop of more than 1,400 yuan / ton. As a result, cotton processing enterprises began to reduce prices. Since processing companies have no profit or face losses, they can only reduce the purchase price of seed cotton, or according to weather factors. Collection and stop. Some processing business owners said they are ready to switch in 2017.
In late November, the state announced in 2017 cotton reserves to round out the time, plus late December, Zheng cotton futures prices fell sharply, hit the textile industry raw material procurement initiative, enterprise each purchase quantities as small as possible, further compressing the inventory, inventory using a lint The number of days has dropped from 20-30 days to 7-10 days. Although close to the Spring Festival, but textile companies are not willing to stock up, are waiting for the March 2017 national storage cotton. At present, the most important task is to reduce raw material inventory and product inventory, and try to avoid the risk of falling cotton prices.
It is understood that Xinjiang's textile enterprises have sufficient raw material stocks, a large margin of choice, yarn sales are normal, textile enterprises operate normally, and policy subsidies make local enterprises profitable higher than the mainland, but the product structure is lower, with 32 to 40 are dominant.
According to statistics, in December 2106, Xinjiang shipped 477,000 tons (including road and rail transportation), and local cotton took a higher proportion of road transportation. Some textile enterprises in Hebei, Jiangsu, Anhui, Hubei and other places reflected that Xinjiang has been in Xinjiang since late December. The price of cotton and the amount of warehousing increased significantly, but the quotation was higher than 800-1000 yuan/ton of real estate cotton and the orders of high-yield and high-yarn yarns of JC40S and above were not good enough to make Xinjiang "double 29/ double 30" machine cotton sales and Inactive.
A textile enterprise in Shandong said that the current cotton stocks are still enough to use for about 25 days. It is expected that the contracted agricultural eight division cotton will reach 500 tons at the end of January (railway transportation is still cheaper than road transportation by 200-300 yuan/ton), plus 2 The 300 tons of US cotton delivered at the beginning of the month can fully support the reserve cotton round in early March, so plan to wait and see the market before the Spring Festival.
Guangzhou LIDONG Garment Industrial Co., Ltd. , https://www.lidongsports.com