Cotton Prices Rose And Xiqiao Textile Complained Incessantly &Nbsp; Most Enterprises Suffered Losses.

I recently Xiqiao The textile industry base was informed by the interview that cotton prices rose, RMB appreciated, and China and the US increased. Trade Many textile enterprises in Xiqiao are losing money because of friction and other factors. Some enterprises even stop paying orders. If cotton prices continue to rise, some textile firms with poor risk tolerance will have to close.

Cotton prices have risen quite a lot. Spin Enterprises lose money

"Within a week, the price of cotton per ton rose by 5000 yuan!" Chen Haidong, deputy general manager of Datang dyeing and printing company, felt somewhat helpless about the rising cost of cotton prices this year. "According to past experience, by September, the price of cotton should be reduced, but this year it will not rise."

Liang Yaokun, general manager of Italy Hongli Garments Co., Ltd. told me that the price of cotton has been higher this year. The price of cotton yarn per ton has risen by about 8000 yuan in the first 10 days of the national day. Affected by this, since September, the price of denim fabrics has increased by about 2 yuan per metre, compared with the beginning of the year, which has increased by about 5 yuan. For printing and dyeing industry, even for the production of high value-added products, the processing unit price of one meter raw material cloth is only 3 yuan, and gross profit is two or three cents.

"The price of raw materials alone has made textile enterprises lose money, which has more serious impact on textile enterprises than the 2008 financial crisis. Not only is Xiqiao, but the entire Chinese textile industry is facing the most difficult period in ten years ". According to Liang Yaokun estimates, if cotton prices are not up to speed, many weak textile enterprises in Xiqiao will go bankrupt.

Enterprises should take different measures.

"Now many enterprises in Xiqiao are afraid to take orders again, because enterprises can not afford to lose much of their production." Liang Yaokun said that many enterprises are in a wait-and-see situation, and they hope that the price of cotton can be stabilized as soon as possible. Only when cotton prices are kept at a certain level and will not be "one day a price" can enterprises introduce corresponding measures to digest the rising raw material cost and tide over difficulties through the whole industrial chain.

Compared with some small and medium-sized textile enterprises in Xiqiao, Datang dyeing and printing enterprise, which has stronger strength, is more active in coping with the crisis. Chen Haidong introduced to the author that Datang dyeing and printing is currently more strict in product quality control, avoiding compensation for quality mistakes. "The gross profit of one meter cloth is only two or three cents, but if there is a mistake, each rice cloth should compensate the other party for about 20 yuan, and the risk will increase several times at a time." {page_break}

Datang printing and dyeing has always been targeted at the production of high value-added products. In the current difficult times, this position is more important for its survival and development. "At this moment, we pay more attention to the development of new products, which is a defensive strategy." Chen Haidong believes that for some printing and dyeing enterprises with low technology content, because of their small profits, their profit way mainly depends on quantity and cost control. In the face of this year's market situation, such enterprises will face great risk of survival. And actively developing new products and improving the added value of products, enterprises will be able to grasp the right of independent pricing and increase profit margins. "The development of new products can not stop, first, the market has a demand for textiles. Secondly, a new product will be developed, and will soon be copied and reduced to ordinary products. The price will be transparent and the profits will be reduced."

Textile exports decrease in Xiqiao

"This year's pressure on the textile industry in Xiqiao is not only due to rising prices of raw materials, but also impeding the export of Chinese textiles is another pressure on textile enterprises". Chen Haidong, deputy general manager of Datang dyeing and Printing Co., Ltd. told me that the export situation of Xiqiao textiles is not optimistic due to the impact of the market environment.

Chen Haidong said that even in the financial crisis sweeping the world in 2008 and 2009, the order of Xiqiao textile enterprises has significantly increased, and the order in 2009 has increased by about 30% compared with 2008. The market demand for some fabrics has even reached the highest level in history. But this year, the negative impact of the financial crisis on the textile industry is gradually showing. With the appreciation of the renminbi, the price of textile exports has been repeatedly depressed, and profit margins have almost been squeezed out, and exports have been blocked. In addition, demand for textiles, especially high-end and luxury textiles, is shrinking in overseas markets.

The relevant media reports also confirm Chen Haidong's statement that the United States, the European Union and Japan are the most important areas of textile and clothing consumption in the world, and also the main export market of China's textile industry. However, at present, there is no unexpected rebound in peripheral demand. On the contrary, under the influence of a series of unfavorable factors such as trade friction, European debt crisis and RMB appreciation, coupled with the rising price of raw materials, the export situation of textile industry is "cold".

Meanwhile, in the Sino US trade friction, the United States began to increase textile import tariffs, making Xiqiao textile enterprises worse. According to Chen Haidong's estimate, under this kind of "internal and external difficulties", the proportion of profitable textile enterprises in Xiqiao this year will not exceed 5%.