The Price Of Cotton Is Increased By 10%-20%&Nbsp; The Cost Pressure Is Passed On To The Final Decision

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Hangzhou Yongxiang Textile Co., Ltd. is a perennial cotton spinning enterprise. According to the company, cotton accounts for 75% of the total cost of the enterprise. The continuous rise in prices of cotton makes their enterprises feel tremendous pressure.

According to the manager of Yongxiang, Hangzhou, because the company had accumulated a lot of cheap cotton at the price of fourteen thousand yuan / ton last year, the business in the factory can still be maintained. But what he is particularly worried about is that if the stock is used up, it can only use the new cotton of twenty-five thousand yuan per ton, and according to the current cotton growth, the enterprise will immediately fall into losses.

Suo Zhengxi, general manager of Hangzhou Yongxiang Textile Co., Ltd.: from our enterprise, we now stock 2000 tons, 2000 tons of inventory, we use the end of this year, there should be no problem, for our enterprises, after the end of the year may be reversed, may turn from profit to loss.

In Xinjiang, a local reluctant to reveal his name.

Suo Zhengxi, general manager of Hangzhou Yongxiang Textile Co., Ltd.: I expect that after December, when a large number of enterprises are going to use new cotton, and cotton prices will continue to rise, many enterprises may be involved in limiting production, or even shutting down cars.

There are many factors affecting the price of cotton.

The main reason is that the gap between supply and demand of cotton is large.

In 2010 1-8, the export volume of domestic textile and clothing increased by 24% over the same period last year. Cotton production in Xinjiang, the main cotton producing area of China, directly reduced cotton supply this year.

The total output of cotton in 2009-2010 will decrease by 12.4% compared with the previous year, to 7 million tons, the largest decline in cotton production since 2000.

According to the production and storage data, the cotton production and demand gap in China reached 2 million 580 thousand tons in 2009-2010, an increase of 1 million 170 thousand tons over the previous year.

At the same time, global cotton supply is also not optimistic. According to the US Department of agriculture's global cotton supply and demand forecast data, the global cotton supply in 2010/2011 may decline 6.6% compared to the same period last year, reaching the lowest level in 21 years.

It is not only the pressure on the enterprises to bear the rising price of cotton, but also the dealers in the downstream cotton textile products are also feeling the crisis brought by the price increase. What the dealers are doing now is to pfer the production cost to the consumers.

In the past few days, we have learned from the fabric wholesale market in Hangzhou that the overwhelming majority of cloth traders feel that this year's business is hard to make, calling more and making less profit.

Let's take a look at the latest developments in the market.

In the large fabric wholesale market in Hangzhou, the market price of cotton fabric varies from day to day, and the wholesale price of cotton cloth rolls upwards.

In October, the price of cloth was even more crazy. In the first three days of October, the average daily price of cloth rose by 5%. However, many shop owners here said they did not make money, and this year's business was particularly difficult.

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Hangzhou Sijiqing fabric wholesale market shop owner: hard to do, so expensive, people can not stand.

Buy somebody buy, less, business is hard to do, we profit is thin, earn two Sanmao also wants to sell, there is no way.

Hangzhou Sijiqing fabric wholesale market store owner: anyway, no money is earned this year.

It is understood that the price rise of cotton fabric began in the second half of last year, and began to soar in the second half of this year. Although all fabric prices are rising, cotton cloth is the biggest increase.

(format) take three fabrics in the market as an example, the wholesale price of cotton fabric in August is 36 yuan / kg, 38 yuan / kg in September, wholesale price 42 yuan / kg in October, wholesale price 32 yuan / kg in October, 34 yuan / kg in September, wholesale price 36 yuan / kg in October, wholesale price 24 yuan / kg at full time, 26 yuan / kg, wholesale price of 27 yuan / kg.

Hangzhou Sijiqing fabric wholesale market shopkeeper: May began to rise is 22 Fen wool, began to rise in June is Sanmao, now September October 55 Fen wool rise, the day before yesterday, the purchase is thirteen yuan, today will be thirteen pieces five.

One price per day.

Hangzhou Sijiqing fabric wholesale market shop owner: This is the best seller this year, the most popular one this year. It was about 15 yuan in July, 15.5-16 yuan in August, and 16.5 yuan in September. Now it is seventeen yuan eight, and it can not be produced in the factory. There are some noodles in the factory, and the price of cotton yarn is rising. The cost and labor are all rising.

Cotton clothing up 10%-20% may continue to rise

The cost of cotton step cloth is ultimately borne by the cost of cotton products. The price of cotton clothing has increased by 10%-20% over the past few months.

Analysis of the industry said that the price of cotton prices continued to rise, the impact on the terminal will be fully visible at the end of this year or next year, by then, the price of cotton clothing will continue to rise, let's take a look at the latest news of the market.

In the wholesale market of clothing in Hangzhou, the price of clothes for cotton products has also risen since the second half of the year. A plain cotton long sleeved shirt sold at last year's sales price was 50 yuan / piece, and this year it has risen to 78 yuan / piece. Many businessmen said that such a large price increase was not acceptable to them at first, 10%-20%.

Hangzhou clothing wholesale market owner: our cotton clothing this year has risen considerably. The wholesale price of shirts has gone up by five or six yuan, and the jacket within two layers has risen by about ten yuan, as if cotton padded clothes and large cotton padded clothes need 17.8 yuan.

For ourselves, it seems that we can not accept it, so suddenly we have risen so much that we can not accept it. In general, we can accept it.

Shopkeeper of Hangzhou clothing wholesale market: like this kind of clothes, last year's batch is also 30 yuan, this year at least 35 yuan.

Shopkeeper of Hangzhou clothing wholesale market: we also have less clothes to send this kind of cotton products. There used to be a lot of them, but now they are few, and they do less and have higher cost.

Shopkeeper of Hangzhou clothing wholesale market: our quantity has not been reduced, or as before, sales volume is still very good, although the price has gone up, it still sells as well.

Industry analysts said that as the end of the year, many enterprises will run out of old cotton, and the use of high priced new cotton, then the impact of the high price of cotton will really show up.

It is understood that cotton accounts for about 40% of the cost of general clothing, according to estimates, cotton prices rose by 5%, garment processing enterprises profits will drop 2%.

But businesses have also made it clear that they will not bear the burden of rising costs in the future.

Li Rugang, chairman of Ningbo YOUNGOR Fashion Co., Ltd.: this cost has increased by more than ten yuan. Now we have a retail price of a shirt, for example, 400 yuan, and my cost price is 15 yuan. If the cost goes up again, to our terminal, it will probably increase by 10%.

For example, my shirt is 40 yuan, then I rise to 440, 450.