Yuncheng, Shandong: Spinning Enterprises Are Running Poorly, Spinning Profits Fell To 1000 Yuan / Ton

Recently, China's cotton net workers came to Yuncheng, a textile County in southwest Shandong, to investigate the textile market situation. Through communication with the head of the local textile association, we know that there are nearly 200 large and small textile enterprises in Yuncheng County, 3 million spindles in the whole county, and 300 thousand tons in the county each year. 90% enterprises are mainly spun pure cotton yarn 32 and 40, and the products are mainly exported to Guangdong, Fujian and Jiangsu Nantong.

By visiting 4-5 local enterprises, we learned that before October 2018, the spinning profit of enterprises was still around 2000 yuan / ton, but it began to be affected by the Sino US trade dispute in October last year, and the market situation was weakening. Spinning profits gradually dropped to 1000 yuan / ton. With the escalation of Sino US trade disputes, the spot price of cotton futures began to fall sharply in 2019. As of now, the spinning profit of the enterprises is basically zero. Local enterprises generally reflect that the downstream textile market is difficult to operate, the export is not smooth and the orders are reduced, which has led to further backlog of the products of the spinning enterprises.

The head of a local enterprise said that it will also actively respond to the current market changes and reduce costs by seeking countermeasures and practicing internal strength, so as to reduce costs. But if the price of cotton market continues to fall sharply in the future, enterprises will also have the possibility of limiting production and shutting down production. The company calls for relevant departments to introduce relevant policies as soon as possible, so as to ensure the stability of cotton prices.