Prices Of Raw Materials Such As Cotton And Chemical Fiber Have Plummeted.

Recently, under the background of a sharp decline in international crude oil prices, textile raw material prices have seen a new low. Quanzhou textile industry is expected to achieve low cost and low profit operation.

Cotton and chemical fiber are the main raw materials of textiles. "After substantial price cuts last year, prices of textile raw materials have dropped to the bottom." Yuming Sheng, general manager of Quanzhou Sales Department of Ruida futures, analyzed the price of textile raw materials such as wool, viscose and cotton yarn in a downward trend since the second half of last year.

The reduction of raw material prices will trigger a chain reaction in the industrial chain. Li Yong, deputy general manager of Quanzhou Gang Sheng Clothing Co., Ltd. believes that the price reduction of textile raw materials is good news for the whole industry.

He said: "the price reduction of raw materials has relieved the enterprises. The original enterprises carried out the burden of the plateau material price and made a heavy burden. For some high cost orders, because the raw materials are expensive, the profit margins are limited, the enterprises sometimes dare not accept them, which also makes the enterprises lose some customers. Now, the price of raw materials has declined, the cost of enterprises has also declined, the profit margins have been enlarged, so that enterprises dare to meet those relatively high cost orders.

He believes that the impact of the decline in raw material prices on the industrial chain is quite far-reaching. "For the upstream buyers, the drop in prices is of great benefit to them. They are between raw material producers and enterprises, and they will be more active after the price of raw materials decreases. He said.

He said: "the price reduction of raw materials has alleviated the current employment pressure to a certain extent. The order of enterprises has increased. In this way, the workers will be able to work and the chance of unemployment will be reduced accordingly. So this has a certain effect on relieving employment pressure.

Reporters learned that, from the entire textile and garment industry chain situation, downstream clothing production and circulation did not appear to reduce the price trend. Yuming Sheng believes that in the short term, the price of textile raw materials has little impact on the clothing industry in Quanzhou. He said: "there are many brands of clothing in Quanzhou, and the textile industry has a very long industrial chain. From cotton, PTA to garments, there are many chains, and the reaction is slow. The impact is not obvious in the short term."

Luo Ruihua, director of human resources administration of sporting goods limited, said: "the revitalization of textile and garment enterprises is hard to achieve only by reducing the price of raw materials. The price reduction of textile materials can only reduce the burden of production cost to a certain extent. But it is very important for enterprises to "save themselves". First of all, we should improve the efficiency of labor production.

Mr. Huang Qingfa, deputy general manager of Quanzhou Tianyu chemical fiber company, expressed some anxiety. "If the price of raw materials is cut too fast, it will bring great losses to enterprises with stock of raw materials." For example, he said, if the original 20000 yuan / ton of chemical fiber raw materials, now may be as long as 15000 yuan / ton, the more inventory, the greater the loss.

In addition, he raised another worry that is the problem of market demand. He said: "the market demand for enterprise products has not recovered for a day, and the enterprise has been in a predicament. The products produced by the enterprise can not be sold. Raw materials are useless even if they do not spend money."

Editor in chief: Xu Qiyun