Some Spinning Enterprises Use New Fibers To Cope With Cotton Price Fluctuation

The near future cotton The huge fluctuation of price has brought a fatal blow to small and medium sized cotton textile enterprises, but the use of new fibers Spin The impact of business is very small. In recent years, under the backdrop of the whole industry downturn, some textile enterprises in Dezhou, Shandong province have sprung up, vigorously developing new fibers, and explored a new way for textile enterprises to use less cotton. In the past few months, the cotton textile industry is extremely difficult, the effectiveness of new fiber enterprises has steadily increased, and maintained a steady momentum of development.  
Dezhou Huayuan Textile Co., Ltd. is a new modern textile company. It has 60 thousand rings, 60 thousand compact spins, and 16 sets of eddy spinning in Murata, Japan. They have successfully developed modal new yarn, such as modal, Tencel, bamboo fiber, moisture absorption and sweat fiber, milk fiber, bingba fiber, heating fiber, nylon fiber, soybean fiber and cashmere, which are sold to various parts of the country and exported to Korea, Japan, Hongkong and other countries and regions. The fluctuation of cotton price has little effect on the enterprise. At present, production and operation are normal, and the operating rate is 100%. Lingxian County Hengfeng Textile Co., Ltd. is a large cotton spinning enterprise with 150 thousand spindles to produce pure spinning of modle, Tianzhu, Holland viscose, and Lan Jing viscose. Blending Special yarns are mainly cotton and less than 20%. At present, the company has been full load production, inventory is only 500 tons, equivalent to more than 10 days of production of enterprises, there is no problem of product backlog difficult to sell. According to statistics, at present, Lingxian County, Shandong Province, has more than 30 new fiber textile enterprises above Designated Size, with a production capacity of 1 million 200 thousand spindles, and capacity accounts for 30% of the same industry nationwide. The new fiber textile varieties have reached more than 30 series and more than 500 varieties, covering more than 90% varieties in the market. Relying on the product structure of many varieties, differentiation and new-type, Lingxian County's new fiber textile enterprises are able to stand alone in this year's textile industry predicament.  
It is understood that the profit margins of traditional cotton spinning industry are very low, the average industry is only about 4-5%, and many small and medium-sized textile enterprises with extensive management are lower to about 1%. The average profit margin of new fiber products is higher than 10%, which is 1-2 times that of pure cotton products. A large number of small and medium sized cotton spinning enterprises, with low product grades and identical product structure, are all kinds of high quality goods that have no technical content. For Lingxian County Hengfeng and other new fiber textile enterprises, cotton is not the most important raw material for production, and the fluctuation of cotton price has little effect on the efficiency of enterprises.  
According to the insiders, over the years, many textile enterprises have occupied the market with the advantage of low labor cost, rapid development, overcapacity in the domestic textile industry, and the expansion of supply and demand gap of cotton, which has provided opportunities for some hot money speculation, causing cotton prices to rise sharply and plummeted. In the next few years, domestic cotton production potential is limited, and the gap between supply and demand will exist for a long time. Textile industry must carry out structural adjustment so that products can be transformed from low-grade and extensive to high-grade and refined, and actively develop high value added non cotton fibers and reduce their dependence on cotton. At the same time, textile enterprises should strive to build their own brands, so that the brand will become the carrier of value and corporate culture.