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    Cotton Rose By Nearly 60%&Nbsp, And Cash Providers Queued For Cash.

    2010/6/3 10:12:00 23

    Cotton

    "Really can not be cheaper, and now cotton (16370, -90.00, -0.55%) cotton prices have gone up."

    Zhang Zi-zhong, a boss of a foreign trade clothing store, keeps repeating when he meets customers' prices.


    Cotton prices have been rising since the end of last year, and prices have been renovated every week.

    The direct consequence of the rise in cotton prices is the rise in prices of the most important raw materials, such as cotton yarn and cotton cloth, and all enterprises in the textile industry are affected, and the consumers who ultimately pay the bill are consumers.

    In the second half of this year, you will have to pay more money when you buy autumn and winter clothes, all of which are caused by the rise in cotton prices.


    Cotton rose by nearly 60%


    Since the end of last year, the price of international cotton has been on the rise, and the rising tide of cotton has rapidly spread to all the raw materials, processing and consumption terminals of the textile industry.


    The abrupt rise in cotton prices began in 2009 and rose sharply in 2010.

    Starting in December last year, cotton rose by more than 30% over the past 5 months.

    China's cotton price index shows that the price of standard cotton has risen from less than 15000 yuan / ton in February to 17289 yuan / ton in May, while the price of standard cotton was only 10966 yuan / ton at the beginning of last year.

    That is to say, from the beginning of last year, the cumulative increase of cotton has approached 60%.


    "Cotton production in Xinjiang, which accounts for 1/3 of the total cotton planting area last year, has been reduced, and this year's cotton harvest is also not optimistic due to disasters such as rain and snow and hail."

    Analysts pointed out.

    In addition, due to the control of exports by major cotton exporters such as India and the reduction of cotton spot in the US, West Africa and Central Asia, the global cotton prices have been strong, resulting in a tight supply and demand relationship between cotton.


    "Every purchase is going up."


    The rise in cotton prices has directly led to the rising price of the most important raw materials, such as cotton yarn and cotton cloth. At present, the "rising price trend" has almost extended to all the raw materials and processing fields of the textile industry.


    Yun Xing Long Xiang Beijing

    cotton

    Zhang Fang, director of wholesale fabric business, told the Beijing Morning Post reporter that the price of ordinary cotton cloth rose from 7 yuan to 8 yuan per meter, or nearly 15%.

    According to the introduction of a Yiwu cloth dealer, each time they purchase the germ cloth almost will encounter the embarrassment of the price increase, and the reason for the price explanation explained by the manufacturer is no exception that the cotton price rises.

    Because

    cotton

    Prices did not fall back, and many cotton traders appeared to be reluctant to sell.

    An industry insider said that in Yiwu, some cloth dealers were queued up with cash in order to get in.


    Garment factory price rises at least 15%


    "This round of textile industry cost increase is the biggest in recent years."

    Insiders pointed out that domestic and foreign cotton production decreased and supplied

    shortage

    And the high price makes the textile industry face the predicament of production and operation.


    Many enterprises said that the price of cotton yarn increased and the cost of clothing increased. The increase in garment prices in the second half of the year was at least 15%.

    Fujian, a company that produces casual men's clothing, is expected to raise about 10% of its autumn winter clothing because of rising costs.

    Compared with brand clothing, some small and medium-sized garment enterprises are having a hard time, and raw materials are rising to a dilemma. "Raising prices is a fear of scare away customers, and it is difficult to digest the cost pressure of raw materials rising without raising prices."


    Compared with garment enterprises can easily shift the cost pressure, the survival of downstream factories is obviously more difficult.

    Insiders pointed out that although the price of grey cloth has increased over the years, the increase is obviously smaller than that of cotton and yarn.

    The survey of China Textile Industry Association shows that since March this year, as cotton prices continue to rise, some smaller and less capital enterprises have stopped taking orders, and many looms have been stopping one after another, and the operating rate is decreasing.


    "At present, the inventory level of most large textile enterprises has risen to about 2 months."

    Insiders pointed out that the rise in cotton prices ultimately reflected that the downstream products generally take about half a year, so that the impact of cotton prices on clothing enterprises will break out in the second half of the year.

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