Who Is Profiting From Soaring Cotton Prices?

On the 28 day, the cotton futures main variety CF105 of the Zhengzhou mercantile exchange closed up 455 yuan at 22060 yuan per ton.

China's first textile network data show that

The rise of cotton prices is decreasing gradually in the whole cotton industry chain.

Some spinning enterprises have made a lot of money in raising cotton prices this year.

Semi annual report shows that China's largest textile enterprise Wei Qiao textile in the first half of this year cotton yarn business gross profit margin was 15.7%, compared to 7% last year, nearly doubled.

According to the data of China's first textile network, the profit of domestic cotton mill has surged sharply since March of this year. The profit of the cotton mill in June has reached 4600 yuan / ton, and its profit margin has reached over 19%.

The good income of spinning enterprises comes from the accumulation of large quantities of cotton at low prices.

Hua Peng, a representative of Huafu color spinning securities affairs, said that the company bought a lot of cotton at low cotton prices this year, so it has greater initiative in operation.

In addition, because of the booming demand of downstream garment enterprises, the discourse power of spinning enterprises has become more powerful this year. Taking Wei Qiao textile as an example, the price increase of textile products in the first half of the year is higher than that of cotton prices.

According to the data of China's first textile network, the price of cotton yarn variety C32s in January this year was about 21 thousand yuan per ton, rising to 27 thousand yuan or 28.6% at the end of June, while the 328 spot cotton price rose from 18 thousand yuan per ton to 18 thousand yuan during the same period, and cotton yarn rose by far higher than that of cotton, which contributed to a sharp rise in the performance of cotton yarn enterprises.

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When the wave of price rises was pmitted to clothing enterprises, the strength was greatly weakened.

Wang Qian, editor in chief of China's first textile network, said: "clothing enterprises, especially brand clothing enterprises, have a very strong ability to digest their costs. For example, a garment with a retail price of 1000 yuan may cost only 100 yuan. The change in cotton prices has little impact on these enterprises."

For the impact of cotton price rise, 34.82,0.23,0.66% replied to the first financial daily: "since the beginning of this year, the price of raw materials such as cotton has indeed risen, which has had a certain impact on the textile and garment industry. However, the seven wolves insist on providing the best quality products to consumers at the right price. Under this principle, the seven wolves have not yet digested the impact of rising costs by improving the garment factory price. Seven wolves have been improving their operation performance and reducing their cost by improving the operation efficiency and optimizing the management process.

American Apparel (27.29, -0.21, -0.76%), nine Mu Wang and other garment enterprises concerned also said that there is no price hike at present, an industry insider said, brand clothing enterprises mostly sell clothing products in advance in the form of order meeting, the prices of clothing in autumn and winter have been finalized in spring, and generally do not adjust prices because of the rise or fall of cotton prices later.

Insiders said that the price rise from cotton to clothing takes a certain time.