Hebei Cotton Price Hit Another Crisis After Burning To Ten Years High

Hebei's textile and garment industry seems to have entered a full recovery year after the financial crisis is fading away, but cotton prices are soaring all the time, and this industry is facing another crisis.

"Some time ago, the production was suspended for more than 20 days."

Meng Linmao, director of a knitting factory in Jinzhou, Shijiazhuang, said that cotton has gone up too fast recently, and the enterprises are somewhat unbearable.

It is reported that cotton prices have risen rapidly this year, but at the beginning of the year, it is only 14000 yuan per ton, but now it has risen to more than 18000 yuan and has gone up too fast.

It is understood that cotton prices began to rise as early as in the autumn of 2009. As of the beginning of July, cotton prices rose by 30% compared with the average price of 2008/2009, while the corresponding period rose to 40%~50%, the highest point in ten years.

On the one hand, the cotton price of "high fever" was affected by the low cotton price in 2008, and cotton growers' confidence was frustrated and the planting area was reduced.

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.

In addition, the revival of the textile and garment industry has also led to an increase in demand for cotton.

High cost

The rise of cotton prices has also made textile and garment enterprises feel pressure.

Ma Yunjie, deputy general manager of Changshan textile, said that the price of cotton yarn has increased by about 20%, while cotton has risen by 30%.

"The increase in product prices is far behind the pace of rising cotton prices."

Coupled with the increase in labor costs, enterprises have no profit at all.

Some small businesses are under greater pressure.

"A dozen factories in our village were shut down for more than 20 days in early May."

Meng Linmao said.

It is understood that under the background of high cotton prices, there are many phenomena of small enterprises' downtime.

Foreign trade companies are also worried about export orders.

Ma Yunjie said that since June, cotton has gone up too high, and foreign dealers are also worried about no profit.

Not only is the price pressure very low, but the order is also reduced by 20%.

"In the second half of the year, there are many uncertainties in exports, so we can not maintain the situation in the first half of the year."

Wei Yongjun, director of the office of Hebei Textile Industry Association, told reporters that at present, the global economy, especially the European economy, has not yet stabilized, and the RMB exchange rate does not know how to change. In addition, the cost of raw materials has been rising steadily, and the supply and demand sides are now on a stalemate. Therefore, it is difficult to maintain export growth momentum in the second half of the year.

clothing

Reporters learned that, in the early price rise situation, many knitting home textile enterprises have raised the ex factory price.

"Towels for general household use weigh 2 two, and our factory price rises by 0.06 yuan to 0.07 yuan per two."

Meng Linmao told reporters.

The industry expects that with the advent of the new cotton picking season and the increase in cotton import quotas, cotton prices will increase in the future.

However, as the early cotton growth is too strong, the upstream enterprises' price increase is greater than the downstream in the first half of the year, and the price will be pmitted to the terminal clothing home textiles. The first textile network stakeholders expect that the terminal price increase in the second half of the year will be over 10%.