Cotton Prices Rise Not Down &Nbsp; Spinning Enterprises At A Loss But Helpless

Since last October,

As the raw material of the textile industry, domestic cotton 95% is used for spinning, weaving, printing and dyeing, and then processing into garments. It has a wide chain of upstream and downstream industries.

At present, the price of this raw material is continuously pmitting to downstream industries such as weaving, printing and dyeing, clothing and so on.

Some foreign textile and garment enterprises in Nanjing say that the price of cotton cloth has risen by 15%~20%, but the export price has not been significantly improved, and the profits of the enterprises are gradually being "swallowed up".

Spot: cotton rose 56% in 10 months.

Chinese cotton representing domestic spot prices

"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 supply gap of cotton has further expanded, and enterprises have to import cotton to "save the rush".

According to data released by Nanjing customs, 211 thousand tons of cotton imported from Jiangsu port in the first half of this year were valued at US $360 million, up 2.1 times and 3.3 times respectively compared with the same period last year.

At the same time, import average price continued to climb, climbed to $1888 per ton in June, a record high in Jiangsu port.

Among them, private enterprises are the main force of importing cotton.

Conduction:

The rise in cotton prices quickly spread to the downstream industries with its main raw materials. The first blow was cotton yarn.

Huang Wanyin told reporters that after the cotton was collected, it was spun into cotton yarns by the spinning mill, and then woven into cloth by the cloth mill. The printing and dyeing plant was printed and dyed, and finally sold to the garment manufacturer.

At present, the price of cotton yarn is soaring all the way. "Take the more commonly used 21 cotton yarn, 18000 yuan / ton in October last year, now it has risen to 28000 yuan / ton, or 55%."

"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.

As middlemen, they also sacrificed some profits, he said.

Even so, sales have fallen by about 40% this year.

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 has risen by 15%~20%."

Zhuo Shiping, general manager of Nanjing Mexico China Trading Co., said the rally is continuing.

Miss Liang has opened an online shop on Taobao, the main brand of men's clothing.

"In the past few months, the price has been raised three times. A well sold man's cotton casual pants, which was originally $78, could be handed to him. Later, it mentioned 88 yuan, and now it has risen to 99 yuan.

Most of the clothes I sell are made of cotton. Recently, the new prices from manufacturers have gone up.

Predicament: difficult to raise prices, bite the burden of self pressure

However, like Huang Wanyin and Miss Liang, middlemen and agents, the pressure is not the biggest. The textile and garment enterprises located downstream of the industrial chain are getting worse and worse. The pressure of price increases has almost been pmitted to them.

Especially for foreign trade exports, in addition to rising costs, the appreciation of the renminbi against the US dollar and the euro also compresses the profit margins of enterprises.

Most of Huang Wanyin's clients are concentrated in Jiangyin, Suzhou and South of Jiangsu, and some in Nanjing.

"They received many foreign orders at the beginning of the year, and they were all very happy to see each other. Now they can't laugh.

The cost of wages and water and electricity is also rising. Only a few points of the small profits have been "eaten", and foreign businessmen talk about raising prices, and can not be closed.

Now, some people are sticking their heads around and biting their teeth to do the sticker business.

Huang Wanyin said, individual enterprises have been unable to sustain.

"Loss is inevitable."

In a large textile enterprise in Nanjing, a department official sighed that the company had received many foreign trade orders at the beginning of the year, which knew that the cost of cotton cloth was getting higher and higher, and the cost of labor increased by nearly 30%.

"No money, no breach of contract, no bitterness."

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.

Cotton rose by 56% in 10 months, and cotton prices rose by 15%~20%, while export prices did not improve significantly, and profits fell sharply.

Editor's comment: Xu Wenying, the vice president of the China Textile Industry Association and President of the China Cotton Textile Industry Association, said that the surge in foreign orders this year stimulated the demand for cotton by textile enterprises. At the same time, domestic cotton production has been reduced, and there has been difficulties in the outward movement of cotton in Xinjiang. Therefore, the phenomenon of buying cotton is difficult. Many experts believe that this may be the result of short-term market speculation due to the tight market supply of hot money.