According to the Anhui Monitoring Station of the National Cotton Market Monitoring System, on July 30, a 20-day holiday for a small cotton spinning factory in Anhui Province has just ended. It is understood that this is the factory’s fourth holiday since the resumption of work and production this year and the holiday time The initial period is gradually extended from 5 days to 20 days.
Increasing the number of vacations and extending the vacation time is also a helpless move for many cotton spinning mills this year. Before the global COVID-19 epidemic fundamentally improves and under the influence of Sino-US trade friction, cotton spinning mills will have difficulty operating this year, with not only few orders but also meager profits. Up to now, through the investigation of many small and medium-sized cotton spinning mills in Anhui Province, the characteristics of the current off-season are more obvious, and the operations of cotton spinning enterprises are bleak. The most prominent manifestations are: first, the sales price of cotton yarn has dropped, and profit margins have been gradually compressed under the high cotton price, and many cotton spinning mills have fallen into loss-making operations; second, it has become increasingly difficult to sell cotton yarn, and cotton yarn inventories have gradually increased, and enterprises Financial pressure is highlighted.
According to the person in charge of a 100,000-spindle open-end cotton spinning factory, although they have already adjusted their cotton yarn product structure according to market demand, they no longer produce high-count yarns of 40 counts and above, but produce 32-count yarns with better sales. Low count yarns and below. However, after entering the off-season in July, the “sales price” and “sales volume” of cotton yarn did not improve significantly. The current sales price of 32-count open-end pure cotton yarn is 17,000 yuan/ton, and it has been reduced by 200-300 yuan/ton within a month. The person in charge said that since the company currently does not have sufficient funds, raw material procurement mainly comes from low-priced Indian cotton and American cotton purchased on the market to ensure the normal operation of the company. However, the recent sales of low-count yarns have also replicated the previous difficulty in shipping high-count yarns. Daily cotton yarn sales only account for 2/3 of production, and there is still 1/3 in inventory, which puts increasing pressure on enterprises.
Faced with the current difficulties, cotton spinning mills have taken measures to “reduce costs and reduce production capacity” to maintain the normal operation of the enterprise. Cost reduction means adopting appropriate ways to purchase raw cotton to reduce the cost of purchasing cotton to ensure no or less losses. Production capacity reduction means controlling production capacity by increasing the number of holidays and extending holiday time while continuing to implement measures to reduce shifts. </p