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The Pain Of The Whole Industrial Chain Of Textile And Clothing - The Cost Is Infinitely High

2010/7/27 16:06:00 61

Now, this should be the busy season for apparel manufacturers to catch up for winter clothing. However, the soaring price of cotton in the past six months has caused a huge impact on the entire textile and garment industry chain. The rising cost has become the pain of the whole industrial chain of textile and apparel industry.

Actually

Cotton price

The rise is not only a phenomenon in Humen, but now China's cotton price rise has become a common phenomenon.

In fact, not only in cotton, but also in the field of bulk commodities, where China has a high degree of dependence on foreign countries, prices often fluctuate drastically. There are profound reasons for this.

Take cotton as an example, "the world cotton situation looks at China, and the international cotton price looks at the United States".

The United States can firmly control the pricing power of international cotton, on the one hand, because of the asymmetry of market information asymmetry, and another important factor: the existence of pricing system based on futures trading.

U.S.A

Cotton yield

Next to China, it is the largest exporters of cotton in the world. The intercontinental Futures Exchange (ICE) in New York is the most important pricing center in the world.

In the United States, almost all cotton farmers and cotton traders are involved in futures trading.

Developed countries have shifted the highly polluting industries globally.

For example, the clothing that the United States needs is not produced by the United States itself, and put the list in China.

At the same time, China also needs plenty of raw materials -- cotton, and China's cotton list is mostly for the United States.

According to customs statistics, in May, China's textile and clothing exports amounted to 16 billion 430 million US dollars, up 33.5% over the same period last year.

In January -5, China's textile and apparel exports totaled 70 billion 200 million US dollars, up 19.2% over the same period last year.

On the other hand, when Wall Street saw more demand for clothing orders in the United States, they knew that China needed cotton and imported cotton was mainly cotton, cotton, India cotton, Egyptian cotton and so on.

Since China's demand will lead to price increases, they can buy Cotton Futures and sell them to China at high prices.

The financial market magnified the actual price of cotton.

The low degree of financial market participation is China's bulk.

commodity

Price is an important reason for foreign constraints.

On the contrary, China's cotton market has been involved in the futures market for a long time. It is very difficult to integrate into the mainstream market of world cotton trade.

Due to the failure to establish a modern, high-level and multi field cotton management system, there is a problem of unreasonable supply and demand and unbalanced structure in China's cotton production and circulation, and it is difficult for cotton to achieve orderly circulation.