Cotton Prices Rise, Textile Industry Suffers

With the rising cost of labor and other factors of production and the pressure of RMB appreciation, the industry is expected to become more cautious in the second half of the year.

"With the first batch of European and American markets in 5 and June

"I think the situation in the second half of this year is not optimistic, especially for the textile enterprises with high extroverts."

Zhu Yong said that some overseas orders began to turn to suppliers in Southeast Asia, even if there were orders, profits were not high, and some were also losing money. "I know that before an enterprise took orders from Decathlon, it lost about 10000000."

Data show that China in July 9th

"The impact of cotton prices on the cost of textile industry is about 20%, so the price of cotton in this round will be greatly affected."

Zhu Yong told reporters.

In the last 5 months, the price of cotton rose continuously, and the monthly increase was more than 30%. The price of raw materials such as cotton yarn and cotton cloth rose directly, and the cost of the textile industry and the garment enterprises in the middle and lower reaches of the textile industry were also affected.

Data released by the Customs General Administration on 10 may show that textile yarn, fabrics and products exported 35 billion 650 million US dollars in the first half, an increase of 32.3%, an increase of 2.6 percentage points over the first five months, and a 53 billion 230 million increase in clothing exports, an increase of 16%, an acceleration of 2.9 percentage points.

For the industry trend in the second half of the year, Zhu Yong said that the Shanghai textile holding company has made many preparations, and the processing of incoming materials is also under consideration. "This can avoid the risk of raw materials, and some larger lists should also choose to share risks with buyers."

Shanghai Textile Holding Group has two listed companies, Shenda shares and leading shares, and owns many famous brands such as "three guns" and "Queen".

"Through brand management, actively expanding domestic trade and exploring new sales models, such as Internet sales, is our strategy."

Zhu Yong said.