Rising Prices Of Raw Materials Affect Zhejiang's Clothing Industry

　　 When Huzhou's Silk Reeling Enterprises are suffering for soaring cocoon prices, textile enterprises in other parts of Zhejiang are also facing the same problem of high cost. This year, the price of cotton, wool and eiderdown is soaring, no less than cocoons.

Cotton prices have soared more than doubled since September last year, and a ton of standard cotton has surged from 8000 yuan to 17000 yuan. The price of wool has stood at a high level for nearly 30 years, and the price of down has jumped from 100 thousand yuan / ton to 260 thousand yuan / ton in one year.

The soaring price of raw materials has brought enormous cost pressure to Zhejiang's textile industry. Some textile enterprises have begun to resolve the pressure by raising prices. Insiders predict that in the second half of this year, there will be a sharp increase in the price of clothing, home textiles and other end products in the domestic market.

　 Textile raw materials soaring

"The price has gone up too fast, and it can't get the goods." Mr. Lin, a purchasing manager of a large home textile enterprise in Keqiao, said. "The price of cotton yarn is almost one price per day, and the price of cotton yarn is one thousand or two thousand. The number of high counts cotton that has been ordered a few days ago has lost hundreds of thousands of dollars in the past few days." Another chief producer of fabric production said. In order to avoid losses, many fabric enterprises either increase their prices or simply choose to destroy or stop production.

Data show that cotton prices have more than doubled since last September.

"The cotton price rose last year or 2002, but the increase is not as big as it is now." Mr. Lin said that at present, there are 4 months left for the new cotton market, but the supply of goods on the market is obviously insufficient. All enterprises are racking their brains to rush to buy raw materials, which has further pushed up the price of cotton yarn. In addition to cotton, the price of wool and eiderdown is also experiencing the same surge. The price of raw wool produced by Australia has increased by 50% in one year, and the price of feather has increased even more staggering. "90% white cashmere with cashmere volume has increased more than two times in one year." Gao Bailin, general manager of the International Textile Co., Ltd., located in Xiaoshan, said.

Such a huge increase in a short period of time, so that many years of home textile high Berlin feel very incredible. Fortunately, Ai Meida home textile has signed a purchase and sale contract with the upstream down production enterprises in March and April. After paying the deposit of 30%-50%, it locked the supply price of the whole year.

  Tight supply and demand? Hot money speculation?

"In past years, we waited for cotton doors, and now we are looking for cotton at high prices." Mr. Lin said that the shortage of supply is the main reason for the rise in cotton prices this year. According to the statistics released by the National Bureau of statistics, in 2009, the cotton planting area in China was 4 million 950 thousand hectares, 800 thousand hectares less than the previous year, and 6 million 400 thousand tons of cotton output, representing a reduction of 14.6% over the previous year.

According to the China Cotton Association survey, although this year's cotton planting area steadily increased slightly, but the main cotton producing areas such as Xinjiang have been experiencing extreme weather such as Blizzard, low temperature and so on this year, the cotton output of the whole year is still not optimistic. Coupled with the fact that India, the world's second largest cotton producer, has stopped exporting cotton, analysts believe that China is facing a serious shortage of cotton. According to China cotton net, the supply and demand gap of cotton in China may reach 3 million 500 thousand tons before the new cotton market comes into the end of August, and cotton supply may still be tight next year.

Down is also facing the problem of reduced production. Last year, the low temperature lasted for a long time and the market demand for Down garments was large. This year, all manufacturers have increased the estimated volume. At the same time, from the end of 2005 to 2009, the down price of the original price of 240 yuan / kg fell to 80 yuan / kg continuously, the enthusiasm of farmers raising ducks was frustrated, many farmers reduced the number of breeding, and the growth period of ducks needed at least 3 months. The contradiction between supply and demand in the market is difficult to solve in a short time. In addition to the factors of reduced production, there are also people in the industry who believe that speculation is also likely to be another "culprit" for textile raw materials.

At the beginning of this year, the Xinjiang Zhejiang chamber of Commerce estimated that at least 10 billion yuan of Zhejiang's private capital withdrew from Shanxi coal mines and domestic real estate to Xinjiang cotton.

"Cotton prices rise, in addition to the contradiction between supply and demand, do not exclude hot money and speculators in joint speculation." Tian Xiao Quan, vice president of Doris Group Co., Ltd., located in Keqiao, said that, like soybeans, many cotton suppliers and cotton yarn dealers did not put their goods in order to fry high cotton prices, profit from them, or some of the hot money that had been withdrawn from the property market and stock market.