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Cotton Prices Skyrocketed, Profits Of Garment Enterprises

2010/9/2 9:10:00 49

According to the Dalian Textile Association, cotton prices have risen rapidly recently, and the "328" and "329" cotton price per ton has risen from 14000 yuan at the beginning of the year to 18000 yuan, or 30%.

Affected by this, 21 commonly used cotton yarns used in the past year were 18000 yuan per ton, and now they have reached about 28000 yuan.

cotton

The price has risen by 25%-30%, such as the price of pure cotton jersey per ton has risen by nearly ten thousand yuan.

The soaring price of cotton, cotton yarn and cotton cloth not only shifted the cost to the downstream garment industry, but also engulfed the profits of garment enterprises.

According to estimates, because cotton accounts for about 40% of the cost of clothing, and cotton price rises by 5% every time, the profits of garment enterprises will drop by 2%.

Dalian has more than 300 garment enterprises above Designated Size, and most of them are under pressure due to rising cotton prices.

In particular, the export oriented clothing enterprises, the appreciation of the renminbi and the increase in labor costs have been breathless, and now the sharp rise in raw materials is undoubtedly worse.

Some garment enterprises are hesitant to face overseas orders, and "fat meat to the mouth" is a true portrayal of Dalian clothing enterprises.

According to insiders, the increase in cotton prices is mainly due to tight supply and demand.

2009, China

cotton

The total area of production is reduced by 6 million 400 thousand tons, which is about 1 million 100 thousand tons less than in 2008.

With the global economy improving, foreign orders increased this year, stimulating the demand of domestic textile enterprises for cotton.

Second, natural disasters cause global cotton production reduction.

According to market forecasts, China's flood will lead to a reduction in cotton production by 5%-10%. About 30% cotton fields in Pakistan and other cotton producing areas are damaged.

Some large enterprises in the industry hoarding cotton speculation also led to a rise in cotton prices.

At present, the market is still used last year's cotton. In October this year, the new cotton market will stabilize cotton prices for the next few months.

However, because of the less domestic cotton output this year, the overall trend of cotton prices will continue to rise in the future.

In this regard, Dalian

clothing

Enterprises began to take some measures.

For example, multi-channel procurement

raw material

Take account of domestic and foreign raw materials market, or directly purchase farmers' seed cotton; some garment factories reduce cotton use and more use polyester raw materials.

Enterprises with brand advantage have begun to raise their clothing prices in autumn and winter this year. It is expected that the wholesale price of cotton in autumn and winter will increase by 10%-15%.