Cotton Price Has Gone Mad &Nbsp; Garment Export Enterprises Have Been Hit Hard.

Cotton prices continue to rise, the biggest impact is not cotton mill, but downstream clothing enterprises, because overseas buyers can not accept price increases, the current cost pressures are borne by domestic garment enterprises.

"Cotton prices are crazy."

Xu Yanjun, director of Zhenjiang VICCO cotton spinning Co., told reporters yesterday that the price of some cotton has approached 18 thousand yuan / ton, up nearly 20% compared with the beginning of the year.

China's cotton price index shows that the price of standard cotton has risen from less than 15 thousand 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, and the cumulative increase has approached 60% since the beginning of last year.

When cotton prices have risen to more than 14 thousand yuan per ton, many cotton textile enterprises have claimed that it is difficult to sustain.

"However, the situation is not as bad as expected. In the past few months, we have continuously raised the price of cotton yarn according to the increase in cotton prices, and this year has also risen by nearly 20%.

Domestic and foreign customers are basically acceptable, plus some of our cotton is purchased last year, and we can still maintain a certain profit.

Xu Yanjun said.

This year, yarn, fabric and so on follow the price of cotton all the way up.

Zhou Xiaonan, deputy general manager of Huamei line Co., Ltd., said that the price of raw materials such as polyester and chemical fiber has increased by about 10% this year, not only because of the rising cotton prices, but also the price of the yarn has risen according to the rising price of raw materials.

Zhu Sujun, assistant president of Ningbo Shanshan Limited by Share Ltd (hereinafter referred to as "Shanshan"), told reporters yesterday that at the present stage is entering the peak production period, some fabric suppliers even appeared in short supply. This is not a strong rebound in the export market, but the peak season for the production of both domestic and overseas clothing.

"Relatively speaking, domestic sales are more optimistic than exports. Many domestic brand clothing prices have risen to varying degrees this year, while export orders are more difficult to raise prices. At present, garment exporters are under great pressure on cost, basically negotiating prices once a month with customers, making it difficult to raise prices in a timely manner."

Zhu Sujun said.

In April, domestic apparel retail sales increased by 14.6% over the same period last year.

According to our understanding, the price of clothing brands in the domestic market has generally risen by 10%~15% this year, while many export garment enterprises only adjust the price of orders 3%~5%, which is far below the increase in the cost of raw materials.

Although the domestic and foreign textile and garment markets are recovering, there are still many uncertainties in the export market compared with the steady growth of the domestic market.

According to the retail statistics released by the statistical bureau of the United States in May, the apparel retail industry in the United States declined slightly in April compared with March.

In April, sales of clothing and clothing stores in the United States amounted to $18 billion 260 million, down 1%, up 5.7% from the same period last year.

The Munich's May business climate index, which was released recently by the Economic Research Institute of Iraq, also dropped to 101.5 points from 101.6 last month.

In Europe and the United States and other consumer markets have not yet fully recovered in the case of raising prices, overseas customers are likely to pfer orders to other countries or regions.

Many jeans manufacturers told our correspondent that raw cotton is the main raw material for denim production. In recent months, the price of jeans has increased by more than 10%. The cost of a pair of jeans has increased by several yuan on average, as the price of fabrics has increased. The cost of rising jeans is mainly dependent on self digestion, and buyers will not easily accept the price increase.

Assistant Zhong Hao Sen, general manager of Guangdong textiles import and export Limited by Share Ltd, explains why many retail brands in many foreign countries have fixed retail prices for some styles, and even discount sales after the financial crisis. Under the circumstances of no obvious improvement in European and American terminal consumption market, buyers will certainly control the cost of orders, unless some new designs or fabrics can attract their eyeballs.

In the 1~4 months of this year, the export growth of Chinese textiles was much higher than that of clothing exports. Some enterprises reflected that the increase in garment orders with neighboring countries also had a certain relationship with the demand for raw materials in China.

Textile industry senior expert analysis, due to cotton production in the past year, cotton demand increased and India restricted cotton exports and other multiple reasons, it is estimated that cotton prices in the second half of the fall is limited.