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Recently, cotton futures and spot prices fell to the lowest point of the year, and the domestic and foreign cotton spreads remained high. On June 12, the China Cotton Index (CC Index) released by China Cotton Information Network was 18421, down 46 points. The weighted average price of 328 cottons nationwide was 18,421 yuan / ton. Cotton prices soared in the recent two years: From September 2010 onwards, the price of cotton has climbed into a "roller coaster" and skyrocketed from 18,000 yuan / ton to 30,000 yuan / ton and the highest point reached 34,000 yuan / tonne. However, From September 2011 onwards, cotton prices continued to plunge, plunging from 34,000 yuan / ton all the way to December 2011 19,000 yuan / ton. The current price of cotton from the highest point, a decline of up to 45.8%, close to cut. Cotton prices plunged into a textile company can not afford the pain. Cotton prices, "big diving" textile enterprises are equally bad relative to the skyrocketing cotton prices, falling cotton prices for downstream textile industry seems to be good news, but some textile enterprises in Lanxi still in a dilemma. Due to the drastic fluctuations in cotton prices, cotton prices led to lower prices of cotton yarn and gray cloth products, business risk is exacerbated, orders are also continuing to shrink. "Perhaps many people think cotton cheap hurt agricultural and cotton expensive injury enterprises, cotton prices are good for textile enterprises, but lower cotton prices to the enterprise to bring a lot of risks." Cotton yarn wholesale is the main business of Lanxi City Great Textile Co., Ltd. , Wu Shaohui, general manager of the company believes that the drop in cotton prices will inevitably be transmitted to the downstream production of cotton yarn, fabric and apparel textile enterprises, out of "buy up or not buy down" mentality of the masses, the textile enterprises will reduce the order, thereby reducing the cotton demand, The demand for cotton to reduce, cotton prices continue to fall, resulting in a cycle of decline in prices, downstream businesses wait and see mood further intensified. Wu Shaohui introduction, due to the hindered exports of textiles, domestic sales are not enough, from the textile business procurement point of view, the demand for cotton yarn in recent stages obviously not flourishing. In accordance with the laws of previous years, in June, cotton yarn sales entered the off-season, business is more difficult to do. 330 State Road, Lanxi City, Yongchang Street section, gathered hundreds of cotton yarn factory from across the country set up offices throughout the country, a steady stream of cotton arrived here. Gold Friends of cotton yarn dealer told reporters that cotton prices are still declining, the current purchase of cotton yarn Lanxi mostly take with the purchase of cotton with the approach, not stock. Due to the limited demand for cotton yarn, these cotton yarn factory clerks are now busy selling cotton yarn. Lanxi 1300 textile companies, most of the production of gray cloth, the production of finished fabrics and clothing businesses. Lanxi, a white cloth-producing textile mill official said cotton prices fell so that they feel flustered. Cotton prices decline, the customer will have the wait-and-see mood, but also makes the customer an excuse for the product prices, textile sales situation is not optimistic. He said that cotton, raw materials, labor, capital and other factors of production fluctuating, small and medium-sized textile enterprises in the future will be under greater pressure, the days will not be too good. Cotton prices upside down domestic and foreign weakening competitiveness of textile enterprises "Cotton prices for the textile industry, the most important or from domestic and foreign cotton prices upside down, which undoubtedly weakened the competitive advantage of export enterprises." Lanxi Textile Association Deputy Secretary-General Sun Jianhua said . The industry believes that the current domestic cotton prices higher than the international cotton price 45,000 yuan per ton, the international cotton, cotton yarn and gray cloth and other products prices significantly lower than the domestic market, the huge difference in the cost of cotton is weakening the domestic textile and apparel exports The international competitiveness of goods, which led to lower export growth, the loss of foreign orders worsened. China National Textile and Apparel Council said that compared with previous years, the economic indicators of this year, a significant downward trend, the industry continued to increase pressure on the operation, the sharp decline in trade volume and meager profit margins, some companies are facing tremendous pressure to survive. September 8, 2011, the state issued a policy of purchasing and storing cotton, the domestic cotton prices bottom, stabilizing the domestic cotton price. The policy of purchasing and storing cotton has stabilized the cotton price, but at the same time, it has also caused the domestic cotton price to reverse upside down. The "Proposal for Temporarily Receiving and Sending Cotton for 2012" was released on March 1, and the temporary cotton storage and purchase price for 2012 was 20,400 yuan / ton, up 600 yuan from the previous year. The implementation of the temporary cotton reserve plan for 2012 will be implemented from September 1, 2012 to March 31, 2013. The price of domestic cotton storage and storage is becoming a "high price" in the global cotton market. This year, the cotton market has become the focus of attention since the state stopped collecting and storing cotton at the beginning of April and the national inventory of 3 million tons of cotton, focus. At the same time, China's cotton yarn imports have risen sharply. From January to March this year, the cumulative import volume of cotton yarn in our country increased by 32% over the same period of last year. The cotton price difference at home and abroad is the direct reason for the increase in the quantity of imported cotton yarn. According to the statistics of the Customs, from September 2011 to April 2012, China imported a total of 3,751,000 tons of cotton, an increase of 1,880,800 tons or 92.74% from the same period of last year, setting the highest record in history. However, a large amount of imported cotton to Hong Kong faces the predicament of "getting in and going out easily". As imported cotton has to apply for quotas, many enterprises are waiting for the sliding allowance tax (an import duty imposed on the same commodity in different import tariffs according to their market price), resulting in some Bonded port warehouse "overcrowding." Chairman of Lanxi Textile Association and head of Zhejiang Yunshan Textile Co., Ltd., said that the cost of cotton used by domestic textile enterprises is higher than that of foreign textile enterprises while the prices of exported textile products keep the same prices with foreign products, which makes the domestic cotton spinning enterprises in the international market Further weakened the competitiveness of orders reduced. It is understood that the company developed high-density high-density apparel fabrics mainly for export, orders received in the past year to ensure that enterprises operating at full capacity until the end of July, but this year can only be produced until the end of May, compared with previous years orders, This year less than two months of production. The company relies on its own structural adjustment and transformation and upgrading, to the high-end industrial chain, enhance product core competitiveness. Why the price of clothing does not fall? As the main raw material of cotton clothing prices plunged, the price of men and women will be cut? Reporters visited the downtown area several major shopping malls found that, in addition to seasonal clothing discount promotions greater, this year's clothing prices compared with previous years there is a certain extent. Since the price of cotton has dropped, why the price of clothing does not fall? "Although the price of cotton has dropped a lot, but the impact on the price of apparel is not obvious." Zhu, a city brand apparel agents frankly, now fabric has greatly improved than in the past, the market 100% cotton clothes Not rare, most of the clothing used nylon, spandex, hemp, all kinds of fiber and other materials as raw materials. In addition, rising labor costs, higher sales channel costs are also pushing up one of the reasons for rising clothing prices. "It is unrealistic to assume that the price of apparel will fall as long as cotton prices fall." Mr Chu said. Ms. Sun, who runs a clothing store in Lanxi Street in the urban area, said the cost of labor, logistics, warehousing and shop rentals are now rising. The rigid cost of opening clothing stores is rising. Although cotton prices have fallen, they are not enough Let the clothing sales price down. The face of the cotton market full of variables in the market, the textile industry this year, there have been some new changes, such as cotton with cotton ratio is declining, the amount of alternative products such as polyester is on the rise. Some textile companies have also made corresponding adjustments to their product mix. For example, they should increase the proportion of chemical fiber fabrics, adopt less and more cotton, use less cotton, use more fiber to blend, reduce coarse yarn products and increase the proportion of fine yarn products. The picture shows a textile company in Lanxi City workers are in production line.