The Cost Increased By &Nbsp; Spinning Enterprises From "Seed" Cotton.

The annual summer is supposed to be a busy season for apparel manufacturers to catch up for winter clothing. However, the soaring price of cotton in the past six months has made a huge impact on the entire textile and garment industry chain.

Cotton prices have risen by more than 30% this year.

Recently, the news about the acquisition of cotton by international cotton traders in Xinjiang is deeply worried by textile and garment enterprises.

In order to minimize the impact of rising costs, many textile enterprises have tried to contract cotton and cotton in Xinjiang to achieve production and processing.

Not long ago, 4 textile enterprises in our city initially decided to carry out the investment cooperation intention of "cotton production and marketing and cotton spinning production base project" with a number of enterprises in Xinjiang.

"The world cotton situation looks at China, the international cotton price looks at the United States".

Although cotton production in the United States is inferior to China, it is the world's largest exporter of cotton and firmly controls the pricing power of international cotton.

It is understood that the intercontinental futures exchange in New York is the most important pricing center of the world's cotton.

How can the United States achieve the pricing of international cotton? Insiders say that on the one hand, the United States puts the clothes list it needs in China, and China needs sufficient raw materials -- cotton to ensure production.

On the other hand, when

The import of cotton in our city is also increasing year by year.

Statistics from Quanzhou's foreign economic and Trade Bureau showed that the total value of cotton imports in the first half of this year was 34 million US dollars, up 53% over the same period last year.

The main importing countries are

"On the domestic side, cotton production declined last year, and supply decreased by 10% to 20% compared with the same period last year. Orders for domestic enterprises increased and demand was strong.

Autumn and winter clothing or raise price one to 20%

In August 6th, the price of grade 2 Xinjiang cotton was 18800 yuan / ton, 3 grade 18600 yuan / ton.

"According to the current rise in cotton prices, the price of cotton yarn has increased by 1000 yuan per ton, and the price of cotton cloth has increased to 1 yuan per metre."

Shishi, a cotton yarn business operator revealed that the profits of textile enterprises are calculated in terms of a few cents and a few horns. Nowadays, under the pressure of huge cost, it can be said to be a cotton fabric enterprise.

The rise in cotton prices is reflected in downstream clothing, which usually takes 4 to 6 months.

Since May, textile mills have entered the peak season for autumn winter clothing.

It is understood that autumn and winter clothing materials far exceed summer products, 1 kilograms of raw materials can produce 10 sets of summer products, but can only produce 2 sets of autumn and winter products, clothing manufacturers cost pressures will become increasingly evident.

According to the industry's current estimate, in the enterprises that use cotton as the main raw material, this autumn and winter clothing products may raise the price by 8% - 15%.

Many brand clothing enterprises responsible person said that cotton prices rose 30%, if completely passed on, the retail price of clothing should at least close to 20%, enterprises can digest the cost. "The problem is, the trend of the clothing terminal market is the price reduction, not the price increase, clothing enterprises face a dilemma."

Compared with brand clothing enterprises, OEM enterprises face greater pressure, because they are first order, agreed price and delivery after the production.

If the raw material is higher than expected after receiving the bill, there is no way to make money.

In 2008, an underwear enterprise in Jinjiang received an order for three years. "Because the main raw material of cotton underwear is cotton cloth, it is directly affected by cotton price.

The profit of originally producing a dozen (12) underwear is less than 1 yuan, and now the more we produce, the more we lose.

A merchandiser of the company told reporters.

Developing environmentally friendly alternative fabrics

How to digest the cost and reduce the pressure? Before the Canton Fair, Hong Jianku, chairman of the colorful fox clothing and Weaving Co., Ltd. had already calculated the cost of raw materials into the company's casual clothing quotations, and tried to fine tune the order price by 3% to 5%.

In addition, some enterprises developed corn fiber, hemp fiber and other bio based fabrics, increased the bargaining space of clothing.

"Last year, our order dress and casual fabrics order ratio is 8: 2, in these months, slowly adjusted to 3: 7."

Baikai textile chemical fiber company began to consciously avoid some orders, Jin Tao, deputy general manager of the company, said that the production process of leisure fabrics is relatively simple, and the production efficiency is relatively high, which is conducive to the enterprises that bear the cost pressure of raw materials to tide over difficulties.

"There is another way to speed up the promotion of new models, and the new ones have more room for pricing."

In order to fundamentally reduce the impact of rising costs, not long ago, 4 textile enterprises, such as Shishi, Taishan, Huafeng, Fuhua and Taishan cloth industries, were initially determined to launch investment cooperation intentions with a number of enterprises in the "cotton production and marketing and cotton spinning production base" project.

The relevant person in charge of the cooperation project said: "about 40% of garment enterprises go to some cotton producing areas in Henan, Shandong, Shanxi, Hubei and other places, as well as Zhejiang, Xiaoshan, Shaoxing, Jiangsu, Shengze and other large cotton market in the whole country, as well as Longyan, Longyan and other places in the province. Cotton mills and cotton yarns are used to reduce production costs. Some large enterprises are going to contract land to grow cotton, so as to achieve production and processing.