Cotton Is Expensive. Cotton Textile Industry Is Under Great Pressure.

Cotton prices have soared since October last year, rising by more than 50% per ton, the highest level in 10 years.

This price increase is constantly being pmitted to downstream industries such as weaving, printing and dyeing, clothing and so on.

Yesterday, some foreign trade in our city.

The price of cotton yarn and cotton cloth has gone up.

The Chinese cotton price index, representing domestic spot prices, was priced at 18418 yuan / ton in July 12th.

Market expectations, cotton prices will further break through the 20 thousand yuan / ton mark.

"In October of last year, the market price of cotton was still 12500 yuan / ton, and in the first half of July, the highest price rose to 19500 yuan per ton, or nearly 56%." Huang Wanyin, the head of Nanjing Jifeng Textile Co., was shocked and puzzled in the face of the rising tide of cotton prices.

The rise in cotton prices quickly spread to downstream industries.

Huang Wanyin told reporters that the price of cotton yarn is also soaring all the way. "Take 21 more commonly used cotton yarn, last October or 18000 yuan / ton, now has risen to 28000 yuan / ton, or 55%."

He said.

"We mainly sell cotton yarn, get goods from the cotton mill, and then sell it to some cloth factories and garment factories."

Huang Wanyin said, in this industry "chain", upstream enterprises will shift the higher cost to the next family, "basically how much the price increases, and how much to sell."

But recently the price has gone too far, and the next generation can't help crying out. We will make some profits for the sales volume to help them digest the price of a price increase.

He said.

Cotton yarn is woven into cotton cloth and sold to enterprises after printing and dyeing. It usually takes three or four months, so the price pmission is lagging behind.

"The cotton cloth with a width of 1.5 meters has been priced at about 15 yuan per Miller, and now it is 17 to 18 yuan, up 15% to 20%."

Zhuo Shiping, general manager of Nanjing Mexico China Trading Co., Ltd., said that many colleagues encountered the problem of cotton price rise.

clothing

"The pressure of middleman is not the biggest. The most bitter thing is to be a garment enterprise in foreign trade. The pressure of price increases has finally been pmitted to them, and when they face foreign businessmen, it is difficult to master bargaining power, and they can only bite their teeth."

Huang Wanyin told reporters that since the beginning of this year, many foreign trade clothing enterprises have had a hard time, and their profits have been shrinking. Some of them even fail to go bankrupt.

He said sales have fallen by 40% this year.

"Loss is inevitable."

In a large textile enterprise in our city, a department official sighed and told reporters that the company had received many foreign trade orders at the beginning of the year. It was originally very happy to know that the cost of cotton cloth was getting higher and higher, and the cost of labor increased by nearly 30%.

"The list does not make money, nor can it repent."

He said that the impact of the rise in cotton prices has not yet fully manifested, and by the end of the year, we are afraid that life will also be sad.

Enterprises also actively adjust their strategies and seek solutions.

Chen Zhangrong, general manager of Nanjing Quan Yu Textile Co., Ltd., told reporters that since this year, the company has increased the added value of products and increased investment in design and workmanship to cope with the pressure of rising raw materials.

For example, a hat is quoted for 4 yuan, of which the cost of raw materials is only two yuan, and the rest is design and processing cost.

"Our current price increases range from 6% to 10%, which is acceptable to most customers."

He said.

Why cotton prices have gone up so fast?

Analysts believe that cotton prices have been rising for many reasons.

On the one hand, due to the low cotton prices in 2008, cotton growers' confidence was frustrated and the planting area was reduced.

Statistics show that in 2009, China's cotton production was 6 million 400 thousand tons, a decrease of 1 million 100 thousand tons compared with 2008, a drop of nearly 15%.

On the other hand, last year, cotton production in Xinjiang and other major cotton producing areas decreased by nearly 1/4 due to climate disasters and other reasons, which further aggravated the contradiction between supply and demand imbalance.

At the same time, the international cotton price is also on the rise, while cotton exporters such as India have suspended cotton exports, and cotton prices are unlikely to fall in the short term.

Demand is also a major reason for the rise in cotton prices. China's textile industry has continued the trend of stabilizing and picking up in the second half of last year. The domestic yarn output increased considerably from 1 to February in 2010, up 26.52% compared to the same period last year, and the operating rate and order situation of the enterprises were much better than that of the same period last year.

In the financial market, futures funds have sped up the rapid rise of cotton commodity futures and gradually passed to the spot market.

The surrounding agricultural products and commodities showed a large upward trend. Cotton has been relatively low and has become the price depression in the commodity market, giving the capital the space to imagine. While speculative capital is expected to rise in the long term, large and conscious multi cotton commodity futures, the rapid rise of futures has affected the spot market price of cotton.