As the largest supplier of fabrics and textile industry leader, Ruyi Group did not feel the pressure on raw material prices.
Every day, wishful property group deputy general manager Zhang Wei will look at ICE agricultural futures prices and domestic cotton futures prices. In addition, the textile and apparel industry market price changes, export orders, cotton global supply and demand, China supply and demand, exchange rate fluctuations and other cotton production situation, the national policy changes is his close attention
Ruyi Property Group is specifically reserved for the sale of bulk raw material procurement. Ruyi cotton industry demand for cotton industry in 300,000 tons. Last year in October the new cotton market price is not high, about 14,800 yuan per ton. Ruyi concentrated procurement of 120,000 tons of Bingtian cotton, but also to do cotton trade. "Only the combination of trade and industry in order to seize the market opportunities, and truly reduce the cost of cotton procurement." Zhang said.
Zhang said that to November 11 last year, cotton futures prices have jumped to about 17,000 yuan per ton, but also one after another callback. Until now, the spot price of Xinjiang cotton per ton at 16,600 yuan.
Because wishful purchase list is very big. Over the years, wishful and Xinjiang Construction Corps to maintain a good relationship. "In the resource constraints, wishful can get the goods, to lock the price, can use the supply chain procurement model, the resources moved to wish their own factory warehouse." Zhang said.
Because the order is not the same, need to use imported cotton processing, each year, wishful domestic cotton purchases accounted for two-thirds of the total purchase volume, the rest from the United States and Australia. Now, the price of cotton in Australia and the United States has been rising.
In 2013, wishfully acquired the Australian Kabi cotton field, now, wishfully in Australia has its own cotton production base. Through this cross-border resource allocation, increase the control of the upstream raw material resources.
From September last year to now, wish to purchase about 100,000 tons of imported cotton, the US cotton has been to rise from 60 cents per pound has been rose to seventy or eight cents, then callback, or very large.
Zhang said that based on the market to judge, if the cotton futures than the spot price is high, then the use of hedging the way to protect the price of resources at hand.
From the international market point of view, this year the global cotton gap in 200 million tons. China's cotton exports by tariffs and quota restrictions, the domestic cotton supply is relatively more adequate, the current domestic cotton commodity inventory is 1.5 million tons -200 million tons.
Zhang Wei frankly, at present, from the yarn, to the fabric, to the clothing, the price is up, one after another conduction. Ruyi is the whole industry chain operation, so, in this trend of price increases is the benefit. Small and medium enterprises are difficult to resist the risk of raw material prices, because they are in the cotton prices in the doldrums when there is no funds to store cotton, in addition, some new business model can not be carried out, such as just pay the deposit, the supplier will be able to cotton Sent to the factory, only wishful that such enterprises can get this credit.
However, in Zhang Wei view, this round of cotton prices will soon be able to quell the wave, because there are 8 million tons of reserve cotton will soon put on the market, this batch of cotton will continue to put in August, the domestic cotton supply is relatively adequate The
Wish now on hand there are about 100,000 tons of cotton reserves, to support 3-4 months of production, Zhang said that will not blindly a lot of reserves, because the back immediately to the national reserves.