Interview With Chen Qinfeng, Chairman Of Cathay Pacific Company

Shenzhen Guo Tai Hua Textile Co., Ltd. is one of the earliest importing yarn trade enterprises in the industry. It has rich experience and resources, and has established good cooperation relationship with 50% manufacturers in India and Pakistan. The reporter interviewed the chairman of Shenzhen Guotai Hua Textile Co., Ltd. on the issue of yarn import. Chen Qin Feng 。

Reporter: Guotai Hua company is an early importing yarn trade enterprise in China. It knows a lot about Pakistan market. Please introduce Pakistan yarn industry.

Chen Qinfeng: there are more than 500 spinning factories in Pakistan. The largest production reaches 20 million spindles. 5 million 500 thousand tons of yarn exported and 2 billion meters per year are exported to China, Turkey, Portugal, Bangladesh, Korea and other countries.

Many textile enterprises in Pakistan have been the managers of the third and fourth generation after decades of inheritance. They are more aware of good equipment and good management to produce good products, so more than 80% of Pakistan's spinning equipment is imported from Europe and Japan. Most of the managers are well educated.

The superior product of Pakistan cotton yarn is 7S~32S product. The yarn has the characteristics of high cotton distribution, good strip quality, standard weight and less loss, and easy to absorb color, especially in medium light color and dark color. After dyeing, the handle is soft and gloss is good. The grey cloth of Pakistan is not only high in cotton, but also in weight, and it is mostly woven by air-jet looms. The most prominent thing is that its raw materials and production costs are low. This year, the price difference between Pakistan grade 3 cotton and China grade 328 lint has been over 8000 yuan / ton. From the second half of last year to this year, the price of 20S cotton yarn in Pakistan has been lower than that of Chinese 20S cotton yarn. The difference is 10000 yuan / ton at the highest.

The cotton yarn produced in Pakistan is suitable for weaving shallow, medium and dark cloth, and is not recommended for dyeing and dyeing white cloth. If there are special requirements for cotton yarn dyeing and dyeing, it is recommended to use the cotton yarn of American cotton, Australian cotton or Brazil cotton. The yarn rods below 32S in Pakistan are better, but the white foreign fibers such as NLP can exceed the standard. This is due to the fact that Pakistan is still collecting cotton and picking "three silk" manually, resulting in more impurities in cotton yarn.

Reporter: recently imported yarn prices show a rising trend. What is the future trend?

Chen Qinfeng: the price of imported yarn is affected by weather, economic situation and other factors, especially the cotton price. After the fluctuation of the market in the past three years, the international cotton price has returned to the level of 3 years ago. We believe that in the next one or two years, the fluctuation of world cotton prices will be greatly reduced. How much more can a commodity price fall from its highest point by 70%? And the cost of cotton planting is rising every year.

At present, the mentality of manufacturers and businessmen is particularly obvious. Therefore, the phenomenon of market speculation by hoarding goods will be greatly reduced. It is foreseeable that the price of imported yarn will stabilize.

Reporter: in the month of 1~5 this year, China's imports of pure cotton yarn from Pakistan increased by 82.55% over the same period last year. What do you think is the reason for the surge in imports? Will this trend continue in the future?

Chen Qinfeng: like the previous analysis, Pakistan cotton yarn has many advantages and obvious cost advantages. In addition, the growth of imported yarn has a deeper reason.

First, the need for structural adjustment. Because the quality of cotton in India and Pakistan determines that local enterprises are mainly spinning below 40S yarns. For China, after 30 years of rapid development, all kinds of manufacturing costs have reached a certain height. The government is also calling for a higher and better product market. We should gradually eliminate some backward production capacity and carry out structural adjustment. At present, China is still in the lead in the field of high count yarn. The products of India and Pakistan have just made up for China's withdrawal. This is also one of the main reasons for the massive entry of India and Pakistan products into China in recent years. In the next two years, we believe that we will continue to grow rapidly and enter the stage of rapid development.

Secondly, China's trade with the world needs to be balanced, and the textile industry should bear the brunt. China's textile industry has reached its peak. Due to various reasons, it is difficult to develop at high speed. China's textile imports will only grow more and more. This is the trend of the times. In the next 5~10 years, China's yarn imports will reach the 20%~30% share of the total market volume, which means that imported yarn will have room for growth of 5~8 times.

Reporter: now many companies are paying attention to imported yarn, but they lack knowledge of India and Pakistan suppliers. If an enterprise tries to import yarn, how should it operate?

Chen Qinfeng: there are many spinning enterprises in Pakistan and India, and the quality of their products varies greatly. Therefore, yarn enterprises should find matching suppliers according to their own positioning. Enterprises that first set foot in this field may wish to import through agents, and then cooperate directly with manufacturers after accumulating experience.

At present, imported yarn, cloth There are two modes of operation, one is spot mode, the other is shipping mode. The delivery time of cargo is 30~80 days. We must choose a company with good reputation, strong strength and operating experience. Otherwise, the delivery date will be difficult to guarantee. It is suggested that enterprises who first set foot in this field should first adopt spot mode.

Reporter: what risks exist in import yarn trade? How should enterprises avoid risks?

Chen Qinfeng: Generally speaking, the import spot trade is faced with a time lag of 2 months or so between the order period and the delivery date. Under the background of finance, the price fluctuation frequency and amplitude of cotton yarn have been enlarged and uncontrollable. If the timing of purchase is not good enough, there may be a risk of high and low risk. In addition, poor space also makes imported yarn trade more difficult. The import of cotton yarn basically depends on seaborne. The stability and continuity of shipping depend on the stability of the political situation. If the key sea area is blocked, the import of cotton yarn will also be affected.

The management philosophy and strength of an enterprise determine its endurance to market risks. Imported yarn is an adventure when conditions are inadequate. Enterprises should carefully consider the market situation before making sensible purchasing decisions. While choosing a reputable company with strong experience and strong experience, you must abide by the contract.

Reporter: what advantages do Cathay China have, and what help can it provide for the enterprises to import yarn and cloth?

Chen Qinfeng: Cathay China group was founded in 1994. Its business scope covers financial investment, industrial investment and international trade. It is a group company that combines financial capital with industrial operation. It has the advantages of flexible and efficient operation mechanism of private enterprises, has a scientific management system and mature management capabilities, has accumulated rich experience in investment and operation, and has a broad resource integration platform and a high-quality and professional management team.

Cathay Pacific has been involved in the import of yarn and cloth business for 7 years, and has established good cooperative relations with 50% manufacturers in India and Pakistan. In the development process of challenges and opportunities, Cathay China Group adheres to the core values of "success comes from innovation and gains from pleasure", relying on strong industry resources, following the principles of market operation, and adhering to the business philosophy of "honesty and value". With successful experience and resource advantages, we have entered into a strategic partnership based on mutual support, common development and win-win cooperation with the vast number of partners. I believe that with our experience and resource advantages, we will surely bring market opportunities and new profit growth points for upstream and downstream businesses and users.