Raw Materials Skyrocketing And Erosion Profits &Nbsp; Textile Industry Is Experiencing A "Cold Spell".

At present, the textile industry has four main raw materials for production of cotton, chemical fiber and wool.

In the face of rising prices of textile raw materials, textile enterprises can be said to bear the brunt, and the reaction is strongest.

It is true that the soaring price of raw materials has directly increased the production cost of textile enterprises, reduced the profit margins of enterprises, and coupled with the relatively weak clothing consumption market which has been seriously affected by the economic crisis for a long time, many textile enterprises are in a dilemma, and the development of enterprises is difficult.

In terms of the development of textile industry in Zhengzhou market, entering the June, the summer market of imitation linen fabrics has been popular in the summer market, becoming the highlight of sales in June, creating a gratifying situation for the textile market which is selling off-season, and also brings signs of "warming up" to the textile industry after the impact of the economic crisis.

However, in recent days, the four textile materials are competing for a surge of price, which seems to bring a "back gun" to the textile industry. Therefore, many textile enterprises are in a fog and do not know what to do. In the face of this situation, recently, the reporter visited Zhengzhou textile raw material market and some textile enterprises, and interviewed professionals in the industry, thus revealing the mysterious veil of textile raw materials competing for price increase, and making suggestions for the development of textile enterprises.

[status quo]

As we all know, China's cotton began to increase reserves at the end of 2008, and the new cotton shortage in 2009 and other reasons, starting from October last year, cotton prices soared all the way to the textile raw materials market, especially the high-end cotton prices rose faster, such as the high staple cotton market price has reached 24000 yuan / ton, up 41.2% over the same period.

According to Mr. Liu, a textile distributor in Zhengzhou textile world, the price of raw materials for knitting textiles has increased by about 28%, and cotton yarn prices have risen by about 37%. Most of the orders before June will be lost.

"According to the market situation of the past two years, the proper price rise of textile materials, especially the increase of raw material prices of cotton products, is a normal phenomenon.

However, in addition to the rising price of raw materials for cotton products, the prices of three textile raw materials such as chemical fiber, wool, cocoon and silk have gone up crazily, and the prices have gone too far. This is a very unusual phenomenon. Many of our dealers can not afford to eat, and some can lose hundreds of thousands of dollars a day.

Mr. Liu said that before the price of cotton yarn has gone up, they will adjust the proportion of textile raw materials according to the market situation. For example, the cotton price is not high enough to earn profits. They will increase the proportion of the purchase of chemical fiber and wool so as to ensure the company's operating profit.

However, the textile raw materials are now increasing in price, and the increase is greater. In the face of this market, many textile materials dealers are particularly passive, and for a while, they do not know where to go.

"Now the business of this industry is not worse than ever.

I have been engaged in the textile industry for more than thirty years. This is the most rare price hike. A lot of raw materials are just one price per day, and some of them are rising thousands of times.

Turning to the sale of textile raw materials, Hu Lin, manager of Zhengzhou Jinhua Textile Trade Co., Ltd. told a reporter with a worried look. "According to the market situation, if I increase the price for textile enterprises, they will choose to cancel the order on the spot when they look at the high price. That is why I have lost several large lists recently.

If I do not raise the price, I understand that I want to lose money, because the price is very high.

And several export lists have been signed before, because I have already set prices, and now I have to fulfill the order contract, not only can not earn money, but also to pay for it.

It is understood that Jinhua company lost nearly three hundred thousand yuan last week because of cotton spinning price increase.

Yesterday, reporters learned from the Zhengzhou commodity exchange, the current cotton contract (1009) price rose from the original 10650 yuan / ton to the current 17335 yuan / ton, or nearly 70%; wool raw material prices rose to the highest level in 30 years, such as Australian wool prices, has risen from 45000 yuan / ton in June last year to 80000 yuan / ton, or nearly 50%; the price of cocoon and silk raw materials has also risen the highest in 15 years, such as the price of white silk, 170 thousand yuan per ton in October last year, has now risen to 250 thousand yuan per ton, or more than 250 thousand.

[result] textile enterprises bear the brunt of their dilemma.

"Now there are more than 4 months to go out of the new cotton market, but as early as March, there was obviously a shortage of supply. Many textile companies are now racking their brains and trying every means to snap up raw materials, so the price is getting higher and higher, which is the biggest stumbling block for our textile and garment production enterprises."

Zhang Wei, purchasing manager of Henan Hongyuan garment limited liability company, told reporters that facing the current market situation of soaring prices of textile raw materials, Hongyuan garment manufacturing company and many textile enterprises are in an awkward position and are in a dilemma. The development of enterprises can be said to be difficult.

"According to the value rule of market economy development, the price of commodities is affected by the supply and demand of the market, fluctuating around the value. When the commodity supply is less than the demand, the commodity price will rise, and the specific increase will depend on the size of the difference between supply and demand.

However, how to fluctuate prices should be centered on value, and the actual price of textile materials far exceeds the value of the commodity itself. This is a very unusual phenomenon of competing price, and the most direct victim of this phenomenon is our textile and garment production enterprises.

Zhang Wei said that although overall, the soaring price of textile raw materials has a certain negative impact on the whole industry, but it has the greatest impact on textile production enterprises. At present, many enterprises are facing a dilemma.

Entry means that garment enterprises will be faced with the pressure of increasing production costs, and enterprises may lose money. Retreat means stopping production, and if they fail to turn the line, enterprises will be faced with the risk of bankruptcy.

Therefore, on behalf of many textile enterprises, Zhang Wei hopes that the government can strengthen macro-control and curb the occurrence of vicious competition, and provide a healthy and orderly development environment for enterprises.