Textile companies: yarn imports will continue to grow

Yarn imports will continue to grow

——Interview with Chen Qinfeng, Chairman of Shenzhen Guotaihua Textile Co., Ltd.

Chen Qinfeng, chairman of Shenzhen Guotaihua Textile Co., Ltd., analyzed the yarn import situation at the “2012 Imported Yarn Forum”.

Editor's note: The "2012 Imported Yarn Forum" has ended, but the flames of yarn imports are still continuing. Why is imported yarn so popular? What is the future development situation? What kind of attitude does the company hold for imported yarn? In this regard, we will take a special report to find out.

Shenzhen Guotaihua Textile Co., Ltd. is one of the earlier companies engaged in the import yarn trade. It has rich experience and resources, and has established good cooperative relations with 50% of manufacturers in India and Pakistan. Regarding the issue of yarn import that is currently widely concerned, the reporter interviewed Chen Qinfeng, chairman of Shenzhen Guotaihua Textile Co., Ltd.

Reporter: Guotai Hua Company is an enterprise that was engaged in the import of yarns earlier in the country and is very familiar with the Pakistani market. Please tell us about the Pakistani yarn industry.

Chen Qinfeng: There are more than 500 spinning mills in Pakistan, and the largest production scale reaches 20 million spindles. The annual export of yarns is 5.5 million tons, and cloth is 2 billion meters. It is mainly exported to China, Turkey, Portugal, Bangladesh, South Korea and other countries.

After decades of inheritance, many Pakistani textile companies have been the third and fourth generation managers. They are more aware of the good equipment and good management to produce good products. Therefore, 80% of Pakistan's spinning equipment The above is imported from Europe, Japan and other countries. Most managers are well educated.

The advantages of Pakistani cotton yarn products are 7S~32S products. The yarns have the advantages of high cotton blending, good drying, low weight loss, easy to absorb color and other characteristics, especially in the light and dark colors, and have soft hand feeling and good gloss after dyeing. Pakistan's grey cloth is not only high in cotton, but also heavy in weight. It is mostly made by air-jet weaving machines. It has good color and good cloth effect. The most prominent is that its raw materials and production costs are low. Since the beginning of this year, the spread between Pakistan's Grade 3 cotton and China's Grade 328 lint has been above 8,000 yuan/ton. From the second half of last year to this year, Pakistan's 20S cotton yarn prices have been lower than China's 20S cotton yarn prices, the highest difference of 10,000 yuan / ton.

The cotton yarns produced in Pakistan are suitable for weaving light, medium and dark fabrics and are not recommended for weaving white fabrics. If there are special requirements for cotton yarn dyed white fabrics, it is recommended to use US cotton, Australian cotton or Brazilian cotton spinning. The yarns below 32S produced by Pakistan are better, but white foreign fibers such as Nylon may exceed the standard. This is because Pakistan still collects cotton by hand and picks "three wires," causing relatively more impurities in cotton yarn.

Reporter: Recently imported yarn prices have shown a rising trend. How will the future trend be?

Chen Qinfeng: Imported yarn prices are affected by weather, economic conditions, and other factors, and are particularly affected by cotton prices. After experiencing the ups and downs of the market in the first three years, international cotton prices have now returned to levels three years ago. We believe that in the next one to two years, the world cotton price will be greatly reduced. When the price of a commodity has fallen by 70% from its highest point, how much can it fall? Moreover, the cost of cotton cultivation is still rising every year.

Now that manufacturers and merchants are particularly clear about the stability of their opinions, the phenomenon of market hoarding of hoarding supplies will be greatly reduced. It can be predicted that the price of imported yarn will tend to be stable.

Reporter: From January to May this year, China's imports of pure cotton yarn from Pakistan increased by 82.55%. What do you think is the reason for the surge in imports? Will this momentum continue in the future?

Chen Qinfeng: Like the previous analysis, Pakistan cotton yarn has many advantages and obvious cost advantages. In addition, there are deeper reasons for the rapid growth of imported yarns.

The first is structural adjustment needs. Because of the quality of cotton in India and Pakistan, it is determined that local companies mainly spin the yarn below 40S. For China, after more than 30 years of rapid development, various manufacturing costs have reached a certain height. The government is also calling for advancement into higher and better product markets, and it is necessary to phase out some of the backward production capacity and carry out structural adjustment. At present, China still maintains a leading position in the high-yarn high-density area. The products of India and Pakistan have just made up for the areas in which China wants to withdraw. This is also one of the main reasons why India and Pakistan’s products have entered China in large quantities in recent years. In the next two years, we believe that it will continue to grow in large numbers and enter a stage of rapid development. .

Second, trade between China and the world needs to be balanced, and the textile industry should bear the brunt. China's textile industry has reached its peak and is affected by various reasons. It is difficult to develop at a high speed. China's textile imports will only become more and more, and this is a general trend. In the next 5 to 10 years, China's yarn import volume will reach 20%~30% of the total market volume, which means that imported yarns will have 5~8 times growth space on the current basis.

Reporter: Many companies are now paying attention to imported yarns, but they lack understanding of India-Pakistan suppliers. If companies want to try to import yarn, how should they operate?

Chen Qinfeng: There are numerous spinning companies in Pakistan and India. The quality of their products is also uneven. Therefore, yarn companies should find matching suppliers based on their own positioning. For the first time, companies involved in this field may wish to import through agents, and then directly cooperate with manufacturers after accumulating experience.

At present, there are two operating modes for imported yarns and cloths. One is the spot mode and the other is the mode of booking cargo. The delivery date of cargoes varies from 30 to 80 days. We must choose a company with good reputation, strong strength, and operational experience. Otherwise, the delivery date will be hard to guarantee. It is recommended that companies entering the field for the first time adopt the spot model first.

Reporter: What risks are there in the import yarn trade and how should companies avoid risks?

Chen Qinfeng: Import spot trading generally faces a time difference of about 2 months between the ordering period and the delivery period. Under the background of financialization, the frequency and amplitude of the price fluctuations of cotton yarns have been enlarged and are not controllable. If the timing of purchases is not well grasped, There may be risks of highs and lows. In addition, the spatial difference also makes it more difficult to import yarns, and the import of cotton yarn depends on shipping. The stability and continuity of shipping depends on the stability of the political situation. If there is a phenomenon in key sea areas, the import of cotton yarn will also be affected. influences.

The company's business philosophy and strength determine its ability to withstand market risks. Importing yarn is an adventure in the absence of conditions. Companies should make sensible purchasing decisions after careful consideration of market conditions. In choosing a company with good reputation, strong strength and operational experience, they must also abide by the contract.

Reporter: What advantages does Guotai Hua Company have, and what can it help companies to import yarn and cloth?

Chen Qinfeng: Guotaihua Group was founded in 1994. Its business scope covers financial investment, industrial investment, and international trade. It is a group company combining financial capital with industrial operations. It possesses the advantages of flexible and efficient operating mechanism of private enterprises and has a scientific management system. With mature management capabilities, it has accumulated rich experience in investment and operation, has a vast resource integration platform and a high-quality, professional management team.

Cathay Pacific has been involved in the import of yarns and cloths for seven years and has established a good relationship with 50% of the manufacturers in India and Pakistan. In the development process full of challenges and opportunities, Cathay Pacific Group adheres to the core values ​​of “Success is derived from innovation and rewards sharing”, relying on strong industry resources, following the laws of market operation, and adhering to the business philosophy of “Integrity Creates Value”. . With successful experience and resource advantages, we have established strategic partnerships with the vast majority of our partners in mutual support, common development, and win-win cooperation. We believe that with our experience and resource advantages, we can certainly bring upstream and downstream merchants and users with market opportunities and new profit growth points.