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    Cotton Prices Soaring, Shishi Textile Shoes And Clothing Enterprises Where To Go

    2010/9/28 10:09:00 55

    Cotton Price Textile OEM

    In September 28th, it rose 20% in 4 days.

    Cotton price

    Soaring again let stone lions

    Spin

    Garment enterprises are facing severe challenges.

    Under heavy cost pressures and fierce market competition, Shishi textile and garment enterprises, especially small and medium-sized enterprises, are having a hard time.

    "In recent years, cotton prices have gone up like crazy, and businesses are getting worse every day."

    Yesterday, the boss of a OEM company told reporters that in order to cope with the high cost pressure brought by the soaring cotton prices, fabric suppliers had issued final ultimatum, asking for a rise of one yuan per yard, otherwise they would rather compensate and unilaterally terminate the contract.


    And this family

    OEM

    A textile enterprise adjacent to the processing enterprise is even more worried.

    The company official told reporters, "because this year's orders were signed at the end of last year, many factors of cost rise have not been predicted in advance, but they have not made any profit. In recent days, however, cotton prices have risen by 20% in 4 days on the basis of previous price increases."

    Reporters observed that after September 20th, the US cotton futures rose sharply, while the Zhengzhou futures exchange cotton futures showed a daily limit.

    The cotton price data show that the price of the 4 grade cotton has risen from 18000 yuan / ton to 22400 yuan / ton, while the price of the 5 grade cotton has also broken through 20000 yuan / ton.


    So why are cotton prices so high? What is the reason for the rise? Reporters learned that, at the time of 2008, cotton prices were very low, leading to a serious setback in cotton farmers' confidence and a reduction in planting area.

    Statistics show that in 2009, China's cotton production was 6 million 400 thousand tons, a decrease of 1 million 100 thousand tons compared with 2008, a drop of nearly 15%.

    Two, because of the weather last year, the output of the whole cotton main production area is relatively low, so the whole supply and demand situation in China has been unbalanced.

    In addition, from an international point of view, in fact, the international supply and demand balance of cotton has not kept up for 15 consecutive years, that is to say, the demand has been far greater than the output. Therefore, the supply and demand of the whole international cotton market has been unbalanced for 15 consecutive years. Last year, the main cotton producing areas in the world were affected by the disaster factors, resulting in a decline in output. For example, India now prohibits the export of cotton, coupled with the low US dollar and so on, leading to the high price of cotton futures. Under the influence of such superposition factors, China's cotton prices are rising.


    "Cotton prices have risen by more than 40% this year, and our profits have decreased by more than 60% on average. If we go on like this, there are only two ways before us. First, we should stop production and go out of business to see what happens." two is to die and lose.

    Hongfa cloth industry Mr. Chen said helplessly.

    During the interview, the reporter learned that although many textile enterprises in our city have done some work and efforts in dealing with the high cotton prices this year, they have also achieved some results. But facing the soaring cotton prices, they feel that their hearts are surplus but not enough.

    In this regard, the industry suggested that if textile and garment enterprises are to survive the crisis, it is necessary to continue to accelerate technological innovation and new product research and development, and appropriately raise the price of new products; two, make efforts in recycling and energy conservation and consumption reduction; three, the government should intensify macro-control efforts to prevent cotton prices from rising again.

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