Cancel the temporary storage "iron rice bowl"

Here the editor of the world clothing, shoes, hats and nets to introduce to everyone is the temporary "iron rice bowl" was canceled, cotton enterprises face ** difficult.

In 2014, with the conclusion of the country’s temporary cotton purchasing and storage policy, China’s cotton prices have entered a downward channel and gradually become in line with international standards. Cotton processing companies will sell cotton at market prices. This move is conducive to China's textile enterprises to reduce raw material costs and help the textile industry out of the predicament, but for the cotton acquisition and processing enterprises, due to the cancellation of the “China Iron and Steel Bowl” policy of the State Cotton Reserve, the company will face the market, **, etc. problem.

Due to the fact that the state has collected deposits for the past few years and the market risk of the enterprise is relatively small, commercial banks, especially small-share-based banks, have actively marketed cotton enterprises. Although the interest rate is high, it is relatively easy. In addition to the dominated agricultural distribution, there are 2 to 3 joint-stock banks with different quotas. However, with the end of the country’s temporary cotton purchasing and storage policy, the cotton processing enterprises no longer enjoy the guarantee of the State’s temporary “iron rice bowl” and the company’s market risk has increased. The willingness of joint-stock banks that have always been very cautious with regard to business risks has great intent to intervene. Certainty. The boss of a cotton processing company stated that at present there is no joint-stock bank to dock with the company, but at this time in previous years, the client manager had already reached the company. In addition, due to the increase in market risk this year, the requirements of the second repayment source will also be much more stringent than in previous years, while the cotton acquisition company’s own assets are relatively small, the external guarantee ability is weak, and it is unable to give itself to others. Enterprises provide guarantees, so it is difficult to find companies with stronger guarantees to guarantee themselves. Guarantees are difficult to implement and will become a major obstacle to this year's cotton acquisition business.

In addition, the three-year national temporary storage and storage policy has led many cotton processing companies to adapt to the objective benefits and convenience brought by the deposits, so that the cotton purchasing companies concentrate on resolving the deposits and give up the maintenance of downstream customer relations. . Now suddenly they will be brought to the market, fully market operation, cotton enterprises face the most important issue is the sales of lint. The original textile customers have not had a supply relationship for 3 years, and cotton textile companies have also adjusted their product positioning due to the market demand. Do not know what kind of textile companies can adapt to the needs of their own processing lint, so cotton enterprises to adapt to new market needs, and re-build their own sales channels to ensure that the processing of lint sales, the benefits.

When the state collects and stores, the target price has been determined, cotton processing enterprises only need to push back the price of seed cotton in accordance with the state's cotton purchase and storage prices, and lock out certain profitable space for acquisition in accordance with the prices introduced in advance, so that the quality of acquisition and processing can be eliminated. After the cotton purchase and storage ceased, the lint price was determined by the market. At the same time, there was no target price of the national deposit and the price guidance of downstream customers. The seed cotton purchase price was also difficult to determine. The cotton farmers have adapted to the prices at the time of national collection and storage. If the price of seed cotton is low, the cotton farmers will certainly not sell them, the seed cotton will be priced too high, and the lint sales will face losses when they do not go out. Therefore, the market risk increases. On the other hand, in recent years, in order to achieve the storage standards and meet the new level inspection standards, the 400-type processing enterprises with qualifications have updated and added some new equipment. With the increase in production capacity and quality, the lint processing costs are also increasing. Then increase. After the cancellation of storage, the cotton orientation of cotton textile companies is likely to change, and price factors will dominate, while 200-type processing companies that do not have the qualifications to submit deposits will seize part of the market due to low processing costs, and market competition will further intensify. .