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The Frenzied Rise In Cotton Prices Has Led To "Tension" In Downstream Enterprises.

2010/7/17 10:06:00 41

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Cotton prices have surged to new heights in recent years, and this wave of price surges is constantly being carried out to downstream industries such as weaving, printing and dyeing, clothing and so on. The first textile net report predicts that the terminal price increase will be over 10% in the second half of the year, and the export situation in the second half of this year is worrying.

Due to rising raw material costs, uncertain global economic prospects and RMB appreciation, the overall trend of textile and clothing exports this year will show a trend of first high and low. The growth rate of textile and garment exports in the second half of this year is expected to fluctuate around 10%.

Cloth up 30%

Since last October, cotton has been

Price

All the way up and down, each ton rose by more than 50%, a record high in 10 years.

According to the first textile net raw material market price monitoring system, yesterday, the domestic 328 grade cotton spot price was 18398 yuan / ton.

At the same time, the price rise of raw materials in the upstream of this year has led to a sharp rise in the prices of textiles such as yarns and fabrics. This has led to the growth of textile exports in China faster than the growth rate of clothing. This situation has lasted for 7 months.

In May, the export volume of textiles increased by 41.11%, and the amount of clothing exports increased by 27.63%.

Zhong Haosen, assistant general manager of Guangdong textile import and export Limited by Share Ltd, told an interview with our reporter that raw material price growth is now the most influential factor to the export of enterprises. Cloth has risen by 30%-35% from the beginning of this year to the present, but the terminal price has not been followed up.

"Some customers can go up slightly, some will not go up after the meeting.

A slight increase has only risen by about 3%-5%. Brand customers and clothing with high style and high added value have gone up a bit, 5%-8%. "

As a result, the gross profit margin of export enterprises has decreased naturally.

Zhong Haosen said with some reluctantly, "the sales price of foreign customers will never change until the end of the sale. The price of 29.99 yuan will be sold for several years. Raising the price means losing the order, and it is difficult for us to raise the price."

Shanghai flying horse import and Export Co., Ltd.

Trade

Mao Xiahua, director of the management department, said it is difficult to raise prices to overseas customers, especially in the European market, which is still in a recession. Under such circumstances, it is difficult to raise prices.

Export materials are worrying

First textile network senior analyst Ma Xinzheng thinks, from

industry chain

Transmission, textile products as the means of production are at the forefront of the industrial chain. This year, the upstream enterprises will increase their prices more than the downstream ones, and the price will be pmitted to the final garment home textiles. The first textile network expects the terminal price increase in the second half of the year to be over 10%.

Zhong Hao Sen said, "whether we will raise the price in the second half of the year," we will mention a little in the second half, but not much.

We also want to mention 10%, but we still worry that customers will not accept it.

Due to the lag of order trading, China's textile and apparel exports are relatively normal, but the future is not necessarily optimistic.

Especially in the second half of the year, under the pressure of cost pressure, the export enterprises' expectation of raising prices has made the situation of garment exports uncertain.

Dai Lin analysis, the first textile network analyst, looked at the export orders of the enterprises. The customers in the European market, which had always had higher bids, decreased significantly. While the US market was still placing orders, the price was lower and the orders were not stable.

This year, the overall trend of China's textile and clothing exports should be a trend of first high and low. It is estimated that the growth rate of textile and garment exports will fluctuate around 10% in the second half of this year.