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The world economy is recovering. The linen textile industry in our country is gradually feeling the warmth of this recovery. In the first quarter of this year, the overall economic performance of the hemp-spun yarn industry was generally favorable. In the first two months of the start of the year, not only the volume of import and export trade doubled, but also the quality and efficiency of the industry's operation also rose markedly. However, the export unit price of flax yarn and linen fabrics dropped by 11.11% in the case of obvious growth of total exports. Price drop is not a problem this year. In recent years, the selling prices of flax textiles have been generally low. In particular, due to the impact of the international financial crisis in 2009, prices have dropped sharply. According to statistics from China Hemp Industry Association, in September 2007, the price of 15 flax yarn was 385,000 yuan per tonne, down from 362,000 yuan per ton in September 2009, an average of 5.6 percentage points lower. According to statistics, the sales prices of the same kind of products in many enterprises vary greatly. Enterprises have long been in a state of competition in low-level sales prices. In the increasingly fierce market competition circumstances, this competition is no longer the extrusion of corporate profits, but the living space of enterprises. China Hemp Industry Association hopes to establish a more reasonable price mechanism by changing market sales statistics and intra-industry exchanges, changing the current pricing system in hemp industry and providing enterprises with reference to market-oriented prices. Recently organized in Shanghai, linen business forum, linen Association of China Ma Textile Association, Ma Xiaolu read the Secretary-General on the establishment of the main products sales guidance price of linen initiative. Price increases, the issue is once again placed on the desktop. The collapse of the minimum price discussion on raising the price of flax products is by no means the first and probably the last. "The discussion is of no use, and finally the market has the final say." Zhao Zhigang, chairman of Beijing Tianye Industry and Trade Co., Ltd. said. Although many companies find it impos- tant to guide prices, everyone can not help but say more about the price of linen when it comes to the discussion. "Our original intention is to set a guide price to ensure profits, and we expect such guidance should be strongly supported by the enterprise.When we got to the meeting, we found that there are many areas for improvement." China's linen industry Association Secretary-General Dong Chun-Hsing said. The actual situation is that enterprises holding guide price of the discussion draft, but talking about the issue of the lowest price. "Some enterprises make the prices too low, especially for southern enterprises whose transportation costs are lower than ours and whose production efficiency is higher than ours, so the prices they report to clients can only be made up against the loss. Situation, let's mind, set a price, let us earn, you can make more, why not? "From a flax company CEO said. Although he said the truth we all understand, it is not easy to operate. In such an era of market economy, the situation of various enterprises, coupled with the price of each seller holding the seller everywhere, to achieve the ideal of raising prices so difficult! Flax market in the first two years of downturn, many linen companies jointly held a flax summit, we work together to make a minimum price guarantee. At that time, the minimum price guarantee was very formal, and each business representative participating in the summit should sign the agreement. However, the bottom line of that price is still unbreakable. Because in the case of ordinary linen products, who want to give priority to selling their products. After many iterations, we finally reached a consensus that there is no practical significance for the minimum price. There is no binding force, no coercive measures, no limit price and no penalty. Under such circumstances, the minimum price can only become a dead letter. If the minimum price is binding and imposing measures are impractical, the discussion on the minimum price will not come to an end. Guiding Price Prospects "Our guidance price should be meaningful. According to market sales statistics and internal trade exchanges, with special reference to the benchmarking firm's data, to provide a reference for the enterprise price.If the price is mature, get Buyers recognized, that time can properly guide the price of linen products on the mention. "China Hemp Textile Association Xu Jixiang said. In the "Proposal of Establishing the Price for Guiding Sales of Main Products of Linen," there is a passage like this: At present, China's hemp and textile enterprises are gradually out of the shadow of the world financial crisis. The market picks up, orders increase and the production situation is getting better. In the face of increasing demand, enterprises hope to raise the profitability of enterprises while increasing the sales volume so as to better meet the cost pressure brought by the enterprises in energy, environmental protection, employment and exchange rate changes, and ensure their healthy and sustainable development. Therefore, China Linen Textile Industry Association proposed to strengthen the production cost accounting based on strengthening self-discipline of the industry, through the exchange of information within the industry, negotiate and establish a more reasonable price mechanism. "The establishment of a reasonable price guidance mechanism can guide the industry to a sustained healthy and stable development." Dong Chunxing said: "The guide price should be able to guarantee a reasonable profit for the enterprise and play a role in preventing the vicious competition." The original intention of the guide price was good, However, there are obviously many problems during the specific operation. According to Li Haikang, deputy general manager of Shin Shin Group, he saw a bit surprised after seeing the prices of certain products in the statistics of China Hemp Association. Not sure whether the company is a false positive or a statistical method, he feels that some data should differ greatly from the actual situation. Relevant persons from China Hemp Association listened to such opinions and decided to hold a statistical working conference. They hope to be able to define the statistical standards for various products at the meeting. At present, all the work on formulating guiding prices is still under way. Whether it can evade the price ceiling and successfully guide enterprises in raising prices and going out of the dilemma, we will wait and see.
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