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Small-scale business sales stable
According to the survey, Jiangsu is dominated by small and medium-sized enterprises with a concentration of 1-2000 spindles. Its demand for cotton is not as high as that of Henan and Shandong. Part of the corporate yarn products for weaving, some sold to the South. Among the several enterprises visited, although they all set up cloth factories, they made attempts in deep processing. As a result of the pressure of downstream prices, the overall profitability is not satisfactory. After research, the characteristics of the enterprises in the region are perennial started production, product quality, price to meet customer needs, orders remained stable, did not show ups and downs, of course, due to poor management of individual businesses closed down phenomenon. Several enterprises visited the cotton yarn basically no inventory, sales in good condition, even if the profit is not high, still able to maintain normal operation.
Period is combined with point price procurement
In order to ensure that they have their own place in the market, the enterprise can be described as painstaking, and some improvements and upgrades, transformation of pure chemical fiber products, chemical fiber prices, the quality of cotton relative stability, gave them some confidence. Some enterprises are to improve quality, strictly control the cost of cotton procurement. This far companies have made a good attempt. The head of Saiyuan Company said that the basic inventory of enterprises is mainly based on reserve cotton. Due to the low yarn count and the limited price adjustment space, in order to provide the best cost-effective products, the enterprises did not hesitate to purchase the "double 29" standard cotton from Xinjiang cotton. In addition, in terms of spot prices, the enterprises conducted in-depth analysis of the price, quality and basis of cotton provided by traders, selected the best cost-effective materials for spot prices, and effectively controlled the production costs and quality.
Purchasing demand is weak
There is a month away from the Spring Festival, the local stock of basic raw materials in 1-2 months, the recent large-scale procurement of cotton will have very low. In the basic stability of orders and sales under the premise of textile enterprises are rational, not blindly purchasing. Moreover, the lower reaches of the cloth factory, apparel factory prices, they only meet the price, the quality of cotton when the price will be bargain-hunting, and because not rush to replenish the library, the price is often lower than the pressure. At present, most of the local businesses are ready to give up this year's reserve cotton production. As 2017 has tasted the sweetness, this year it is prepared to continue actively bidding.
Soaring profits are squeezed
After investigation, Nantong's production costs continue to rise, profits continue to be compressed. In terms of electricity prices, the local peak electricity price is about 1.2 yuan / kWh, the peak electricity consumption is less than 0.4 yuan / kWh, and the electricity cost is 0.8 yuan / kWh. In terms of manpower, the level of wage in textile industry is between RMB5,000 and RMB6,000 per month, higher than that in Henan and Shandong. The wage rate rising year by year has caused a lot of pressure on enterprises. Even under such wage levels, enterprises are still facing recruitment Difficult predicament. Raw materials, despite falling cotton prices, procurement costs decline, but due to the downstream customers are constantly under pressure, corporate yarn product profits generally lower than 1,000 yuan / ton. Comprehensive accounting, the local cost of raw materials per ton of cotton accounted for more than 70% of the cost of artificial electricity costs accounted for about 20%, after removing equipment depreciation, financial costs, corporate profits are limited.
Textile enterprises in 2018 still face a lot of uncertainties, but the steady production and orders in the whole year have also injected a tonic into this market.