It is understood that 40 to 50 Indian cotton traders and ginners attended the 2014 China Cotton Development Summit Forum. If we add some international cotton merchants and domestic Indian cotton traders who operate the Indian cotton business, There are hundreds of participating companies participating in the Indian cotton import business, which is exactly the same as the yarn and fabric exhibition held in Beijing and Shanghai in recent years. Indian spinning companies accounted for “half of the country”. In the international and Chinese imported cotton markets, Indian cotton and Australian cotton have replaced US cotton as the “backbone”, while the export of Indian cotton yarn has even more aggressively seized the international market share of Chinese companies, and even the domestic positions of Chinese cotton textile companies have also declined. . According to statistics, as of April this year, China has imported a total of 2.109 million tons of foreign cotton, a year-on-year decrease of 31.1%, of which 810,200 tons of Indian cotton and 356,600 tons of US cotton were imported, accounting for 38.4% and 16.9% of China’s total imports respectively. %, Indian cotton not only maintains a share of about 40% in the Chinese market, but also has a significant increase in price. In the 2013/14 Indian fiscal year (April 2013 to March 2014), India registered a cumulative export volume of cotton yarn of 1.4145 million tons, a year-on-year increase of 32.53%; while during the same period, China imported a total of 2.1272 million tons of foreign yarn, of which Indian yarn imports The volume reached 643,000 tons, accounting for 30.2% of the total import volume, which was 144,000 tons more than China’s total cotton yarn exports throughout the year.
With a large number of textile and clothing orders flowing to Southeast Asian countries such as India and Pakistan, the textile manufacturing center has shifted from China to India. According to statistics, Vietnam’s textile exports increased by 20% in the first quarter of this year, and the income of some garment manufacturers It increased by 50% in 2013; India’s clothing exports in April 2014 were US$1.3 billion, an increase of 14.33% compared with US$1.1 billion in the same period last year; India and Pakistan’s clothing exports accounted for 3.2% and 2% of the global market share respectively. . So what are the advantages of Indian companies over Chinese cotton textile mills? (Not discussing the cotton planting area of 130 million acres in India, cotton supply seriously exceeds demand)
1. Southeast Asian countries such as India, Malaysia, and Vietnam have joined the TPP (Trans-Pacific Partnership Agreement), significantly reducing tariffs. That is, 90% of member countries’ goods tariffs will be immediately exempted, and all product tariffs will be eliminated within 12 years. Exemption, Indian textiles and clothing have opened their “outlets” to Europe, the United States, Japan, South Korea and other ASEAN countries. Exports are like a clock that has been wound up, and the rapid upward spurt is in line with expectations (such as the TPP being signed, the United States’ exports to Vietnam, India, etc.) Import tariffs on textiles will be reduced from 17% to 32% to zero). The purpose of the TPP at the time of its establishment was “to avoid and exclude China. The TPP is a club that only prohibits China from entering.” Therefore, due to the arrogant and unreasonable behavior of the TPP countries The suppression and losses suffered by China’s textile and clothing industry in the international market due to “encirclement and interception” are gradually showing up. The Chinese government should make preparations and plans early;
2. The advantages of low cotton prices and new equipment in India are gradually taking effect, especially when the product quality in the fields of yarn, gray fabrics, clothing and other fields is “on par” with most small and medium-sized enterprises in China. From mid-May, although the Indian rupee continues to appreciate against the US dollar, the ex-factory price of S-6 at the ginning mill has risen to 92-93 cents/pound, but it is only equivalent to RMB 12,650-12,800 yuan/ton. At present, China’s The reserve price of standard-grade cotton is 17,250 yuan/ton, and the surface price difference is more than 4,500 yuan/ton (equivalent to the processing cost of domestic C32S cotton yarn). Even if calculated based on the previous bonded zone CIF 94-95 cents/pound quotation, the RMB price after customs clearance is only 15,800-16,000 yuan/ton (sliding tariff price, excluding quota transfer price), there is still a price difference of more than 1,200 yuan/ton, but both It is used to spin cotton yarn with count C40S and below. In addition, most of the equipment in Indian yarn mills is from the 1990s, which has certain advantages over some small and medium-sized textile companies in China. Although it could be compensated for by skilled technology, reasonable cotton allocation and other methods before 2012, in recent years this ” The role of “vulnerability patches” has weakened;
3. The current products of Indian yarn mills are relatively single, mainly pure cotton yarn, focusing on carded and combed cotton yarn with a count of C60S and below. The proportion of new spinning technologies such as sero spinning and compact spinning is not high, so the proportion of new spinning technologies such as siro spinning and compact spinning is not high. At present, C40S, JC40S and below cotton yarns have a greater impact on the products of Chinese textile companies. Since India has both giant spinning mills with more than 1 million spindles and numerous spinning individuals with 5,000 or even smaller spindles, its competitiveness in terms of supply capacity, cost savings, etc. is significantly higher than that of Vietnam, Pakistan, and Thailand. The products of enterprises such as OE10S-JC40S are also concentrated in OE10S-JC40S. Cotton yarns of various grades, varieties and prices can basically be produced according to orders. In terms of the grade of spinning cotton, yarn strength, dyeing, bleaching and other technologies, it is even better than the products of domestic small and medium-sized manufacturers in Shandong, Henan, Hebei, Jiangsu and Zhejiang. In addition, due to the continuous large-scale expansion of Indian cotton spinning mills (some institutions predict that the number of spinning spindles in India will reach 65-75 million at the end of 2013), the export competition of cotton mills is also very fierce;
4. With the gradual improvement of printing, dyeing, clothing and other industrial supporting facilities in Southeast Asian countries such as India and Pakistan, the competitiveness of the “one-stop” industry that Chinese enterprises in Jiangsu, Zhejiang, Guangdong and Shandong are proud of has rapidly declined; in addition, China’s cotton textile and clothing Companies going abroad to build factories abroad or set up joint ventures have also weakened the export competitiveness of their own products to a certain extent. However, domestic enterprises are facing difficulties in the shortage of cheap labor and cotton production.With the high prices of textile raw materials, the sharp appreciation of the RMB, and the “chasing and blocking” of international environments such as the TPP, it is inevitable that export competitiveness will weaken. Relevant government departments are also constantly reducing pressure on enterprises, such as selling unlimited reserves regardless of costs. For example, Henan has included cotton in the scope of input tax assessment and deduction pilots, such as increasing processing trade, sliding quasi-tariff cotton import quotas, etc., but It will take a relatively long period of time to restore the competitiveness of Chinese textile companies. After all, it is still in a stage of rapid decline and has not yet hit the bottom.
