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Ningbo Textile Enterprises Can Not Receive Orders Due To Substantial Increase In Prices Of Raw Materials.

2010/8/19 19:48:00 42

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In the first half of this year, with the recovery of economy, Ningbo

Textile enterprises

Overseas orders have increased substantially.

However, due to the shortage of raw materials such as cotton and the substantial increase in prices, more and more enterprises are facing a difficult situation.

Ningbo's victor Yang blankets Co., Ltd. has been fully scheduled for production this year, with an estimated export volume of US $30 million, an increase of US $5 million over last year.

However, the rise in raw material prices has led to a decline in corporate profits.

Jin Bo, general manager of VICCO textile blanket, said that the price of acrylic material, the main raw material of blankets, was 15% higher than that of last year.

"It is difficult for us to digest the increase in costs."

According to the statistics of Ningbo customs, orders for textile and garment enterprises in Ningbo this year are gratifying. In the first half of this year, textile and garment exports were nearly ten billion US dollars, up 1/4 over the same period last year. But at the same time, domestic enterprises' dependence on imported cotton increased significantly.

In June alone, the import of raw cotton reached 22 thousand tons, an increase of 21.8 times.

Import prices rose sharply.

Textile yarns

The average import price of such products increased by 60%, and the average import price of raw cotton increased by 28.6%.

The price of raw materials has risen sharply, but enterprises have not been able to raise prices for products. More and more enterprises are facing the dilemma of "protecting profits" or "protecting customers".

Because enterprises raise prices means losing customers, and the consequences of not raising prices are losses.

The compression of profit space forced Ningbo enterprises to start pformation and upgrading from earning low prices.

Process cost

Turn to technological innovation and expand marketing channels.

Ningbo Shenzhou Knitting Co., Ltd. has set up its own R & D center to provide technical titles for its products, while Vico textile carpet is committed to developing new products and seeking new pricing power.