Cotton price crisis forced Henan textile enterprises to close down

According to the person in charge of the Cotton Production Management Office of the Shangqiu Agriculture Bureau, the purchase price of seed cotton in the city was around 4.6 yuan/kg in 2009, and this year it soared to around 11 yuan/kg; last year, the purchase price of lint was around 15,000 yuan/ton. This year amounts to 25,000 yuan/ton. From these two figures, we can see that the cotton price in the city doubled from last year and reached a record high. According to the person in charge of the city's Mulan Textile Company, the purchase price of lint at the end of last year was less than 20,000 yuan, and the current price has reached 30,000 yuan.

According to media reports, on September 27 this year, the cotton contract on the Zhengzhou Commodity Exchange hit a record high. As of the close, the CF105 closed at 21,635 yuan per ton, up 380 yuan. On November 8, Zhengzhou Commodity Exchange cotton ** contract easily created the price of cotton ** listed on June 1, 2004. CF105 saw a maximum of 33,295 yuan per ton, and it closed at 32,970 yuan per ton. It rose by 1950 yuan. According to statistics, cotton ** increased by as much as 106% from 16,000 yuan per ton at the beginning of the year to 33,000 yuan per ton in the same day.

The same is true of the cotton spot market. On November 8, China's cotton price index rose by 733 yuan to 28,891 yuan per ton. At the beginning of this year, China's cotton price index was 15,000 yuan per ton, or an increase of more than 90%.

The company is miserable that Zhumadian Kangmao Arts & Crafts Co., Ltd. is an export-oriented private enterprise, mainly engaged in cotton cloth, non-woven shopping bags, composite fabrics and other products, and is exported to 30 countries such as Western Europe, Japan, and the United States. area. Director Chen of Kangmao Company Office told the author that the company’s cotton cloth accounted for 30% of the total product. Since the rise of domestic cotton price, the company’s production has been severely affected. Recently, the company has stopped accepting cotton business orders. The company barely maintains production of non-woven fabrics, composite fabrics and other products.

He said that although seven ministries and commissions have jointly issued relevant measures, the effect is still unknown and not optimistic. For foreign trade companies, the recent foreign trade situation is rather severe and even harder than last year. At present, most of the orders in the industry have already flowed to Vietnam, Pakistan, and other places. The labor costs in these areas are low, and the raw material prices are relatively stable, which has already captured our market.

Zhengzhou Clothing Company, the brand of Zhengzhou pants brand, reflects that more than 500 clothing enterprises above designated size are present in Zhengzhou City. At present, some garment enterprises are hesitant to face overseas orders. Because the contract is signed according to the current price, the actual production is equivalent to increase the cost, and the profit space may even shrink.