Textile Enterprises Do Not Have Courage.

"This year, it is estimated that the whole

Domestic sales: cotton prices fluctuate large enterprises do not dare to pick up

"The price of cotton is like a roller coaster", Chen Yong Zhong, director of Foshan Tai Lin Textile Co., Ltd., a domestic manufacturer of textile products.

It is understood that from September to the beginning of November last year, cotton prices rose by more than 67% and were ridiculed by insiders as "cotton eldest".

And in February this year, cotton prices rose to 30 thousand yuan per ton, then began to decline, all the way to a minimum of 19800 yuan / ton, a month later, the domestic and foreign cotton price gap was as high as 6000~7000 yuan / ton.

The instability of cotton prices has caused enterprises to fall into the awkward situation of long, single and single dare.

The reporter understands that textile enterprises usually have stock of raw materials.

Because the production cycle is longer, it usually takes more than one month or even two months to buy the next quarter.

"Now everyone is out of stock."

Chen Yongzhong explained, because the price fluctuation is too big, the production enterprise has been watching, dare not easily purchase, and the result is no inventory, so that the enterprise has large orders and long time orders do not dare to pick up easily, want to pick up the time without raw materials.

In the past year, after the Spring Festival, the price of raw materials will rise, but this year, cotton prices just started to drop after a small increase. "Inventory enterprises immediately suffered, and the goods were slow, absolutely losing money."

The rise in labor costs and the lack of power supply also made Chen Yongzhong feel puzzled. Chen Yongzhong's business has dropped 40% year-on-year this year.

Export: orders lost to other countries

More than 60% of Foshan East Asian Limited by Share Ltd, which provide raw materials for H&M and other international brand foundry enterprises, come from exports. This kind of sales model of "Big Bang" does not seem to completely protect them from "cold winter" attacks.

East Asian Company's sales volume has dropped by at least 5% over the past year.

"Now the gross margin is only 6%~7%."

Liang Xuedong, general manager of East Asia, believes that the explosive growth of the entire textile industry last year due to the financial tsunami of 2008.

According to the data provided by Foshan Textile Industry Association, Foshan textile industry in 2010

However, this warming last year has become a "fever" in essence.

"Last year's excessive explosion has created a certain amount of inventory pressure to curb the entire demand."

Liang Xuedong said that their downstream customers H&M orders decreased significantly compared with last year.

In addition, part of the raw materials category rose from 28 thousand yuan per ton to 50 thousand yuan per ton.

The instability of prices has prompted buyers to turn to global sourcing.

"Many orders have been lost to Vietnam and India."

Forecast: the textile industry will continue to slump in the second half of the year.

"Some foreign manufacturers have directly locked the supply of goods in their own markets."

A business owner said.

Chen Yongzhong also believes that, according to this year's situation, at least 10% of enterprises will struggle on the brink of life and death.

"This is all the sequelae of fever last year," Chen Shubin said. In the second half of the year, the textile industry is likely to continue to be depressed. Many problems can not be solved in the short term, such as electricity supply.

Because of the long revolving period of capital, many small and medium-sized textile enterprises have tight capital chain. "The collapse of cowboy like before is a small scale enterprise". Affected by the decline of the whole market, this type of enterprises with poor risk tolerance will easily evaporate in an instant.