Shaoxing: High Cost &Nbsp; Fabric Enterprises Suffer In Pain.

Shaoxing is one of the most famous textile and garment industrial clusters in China. Enterprises mainly export various kinds of fabrics to Europe and America, the Middle East, Japan and other countries and regions.

The situation of Shaoxing fabric enterprises is a microcosm of the whole industry.

Gray cloth and other materials push up profits

The most direct impact of cotton yarn price increase on fabric enterprises is the substantial increase in the price demanded for the fabric.

Before the first ten days of July, the price of grey cloth was relatively normal.

Taking the 24 * 24 * 7260 specifications of pure cotton grey cloth as an example, the price at that time was about 5 yuan / m, and the price rose to around 5.8 yuan per meter in August. In late August, it fell back to about 5.5 yuan / m, and it began to soar from mid September. The price at the end of October has risen to 6.5~6.8 yuan / m, up to 30%~36% before July.

It is continuing to rise.

Lu Senbiao, general manager of Zhaofeng Knitting Fabric Co., Ltd., Shaoxing, lamented, "we are the biggest victims."

Zhang Guoping, a textile purchasing agent of Shenzhen ocean textile company, also sighed, "if the cotton price rises again, the enterprises really can not afford it, and we have no way to do it."

When the price of cotton is crazy, many enterprises that produce cotton fabrics mainly use chemical fiber instead of cotton cloth.

As a result, the price of chemical fiber raw materials has increased, and polyester, viscose and other raw materials have risen to varying degrees this year.

The increase is relative to cotton price and is still within the scope of the business.

Taking viscose staple as an example, according to "China Keqiao textile index" monitoring, the mainstream quotation of viscose staple fiber 1.5D market in March 8th was about 19900 yuan / ton, and the mainstream quotation in March 12th was about 20100~20200 yuan / ton. By October 18th, the mainstream quotation of the market has risen to 22500~22600 yuan left right / ton, the market price of viscose staple fiber in October 20th has risen by 500 yuan / ton, the mainstream quotation of 1.5D market is about 23000~23200 yuan / ton, and it is expected to rise to 25000 yuan / ton at the end of November.

In the past 8 months, prices have risen by 16.6%.

Zhang Guoping was deeply impressed by this. What made him feel most obvious was that when he placed orders for the chemical fiber fabric factory, the general price increase reached 2 yuan / meter.

In May, he saw a fabric in a fabric factory at a price of 17 yuan / meter, and the price rose to 19 yuan / meter at the time of real order.

"This makes it difficult for us to operate."

He said.

One day, cotton prices are very unstable, causing the price inflation of related raw materials, which makes the price of all kinds of products on the industrial chain such as grey cloth and fabrics can not be stabilized.

The turbulence and instability of this market situation have squeezed the profit margins of the fabric companies.

If an enterprise quotes a fabric for a customer in October 20th is 5 yuan / m, when the customer takes delivery 1 months later, it is likely that the actual price of cotton should be 5.5 yuan / meter in order to make profits, but the customer still pays 5 yuan / meter according to the contract price.

As a result, the profits of the fabric enterprises will be lost.

Such losses can only be borne by enterprises themselves.

As for raising prices, that is the next business that can be realized.

Companies dare not quote and order easily.

The skyrocketing cotton prices and volatile markets have made many enterprises appear to be reluctant to make quotations even when customers ask.

Enterprises generally reflect that when customers look at a fabric asking price, they dare not quote easily, because it is impossible to judge how much the price will rise to customers in a few days.

Even if orders are placed, they are often dominated by short lists.

Zhejiang red and blue textile printing and dyeing Co., Ltd. produces more than 80% of its products exported to Europe and the Middle East. Although the printed fabrics are made of pure cotton and are mainstream, there are still some cotton products in the products.

"Although it has little impact in general, it still has some effect."

Huang Xinming, deputy general manager of Zhejiang red and blue textile printing and dyeing Co., Ltd. analyzed.

Red, green and blue need to buy gray cloth to the upstream manufacturers. The price of the grey cloth is unstable. The price fluctuates very much almost every day, so sometimes even if there is money in hand, the supply of goods will not be available.

In this way, the pure cotton orders of new customers are not green and blue, but a wait-and-see attitude.

It's just some old customers' orders.

Huang Xinming said that the order of pure cotton will not be accepted.

In the face of crazy cotton prices, red and blue would rather give up this piece.

Similarly, at the Keqiao autumn Expo held on ~28 October 25th, a Middle East customer wanted to purchase about 600 meters of fabric for 50 people to make clothes.

Considering that the market is unstable and the order is too small, Zhejiang Bao textile printing and dyeing Co., Ltd. had to give up the order.

Lu Senbiao, general manager of Shaoxing County Zhaofeng Fabric Co., Ltd., which is part of the production of garments and uses velvet fabrics, also said that if cotton continues to go crazy like this, it is very likely that enterprises will give up the business of velvet fabric.

Cotton fabric and cotton yarn enterprises reduce production and stop production

Cotton price is "Crazy", and the biggest trauma is the small businesses that are mainly made of pure cotton, including fabric enterprises and cotton yarn production enterprises.

A small local fabric manufacturer located in Shaoxing is a professional cotton supplier. Its products are mainly exported to India, Iran and other Middle East areas.

In October last year, its business was very hot, its orders were quite sufficient, and the products were shipped away from the whole cabinet. But in October this year, there was no reduction in the number of customers, and the demand of these foreign customers did not decrease.

Last year, when the business was hot, its merchandiser's business was very large. At the end of a month, basically no one was seen in the company, and they went out to do the merchandising. But this year, the merchandiser obviously relaxed and stayed in the company all day.

When the business was good, there were about 23 employees in the company. But with the soaring cotton prices, the business department, printing and dyeing department, production department and so on were left behind, leaving only a dozen people left.

Last year, when the business was hot, all the machines in the enterprise were working and working overtime, hoping to add some new machines. But in October this year, the factory was still the factory, and the machines were still those machines, but the whole factory was cold, and the machines stopped there without any thunder.

Last year, when the business was hot, the enterprise had about more than 20 orders per month, but this year, it has been very good to walk seven or eight bills a month in the first 10 months.

At present, the company is in a state of shutdown.

This enterprise's experience is not a case.

It is understood that many small cotton fabric enterprises have similar experiences.

Moreover, in Jiangsu and Zhejiang provinces, many small cotton yarns are not doing business at present.

Because they are unable to afford such a crazy price increase, and even if they are made of grey cloth, they will not be able to sell according to their expectations.

"Stop doing business, this phenomenon is just too normal now."

A person in charge of enterprise regrets.

According to a number of enterprises, due to the soaring cotton prices after the "eleven" holiday, many small cotton yarn producers or small fabric enterprises in Jiangsu and Zhejiang provinces have extended their holidays, and have cut down their production or even stopped production. Even large fabric enterprises or cotton yarn enterprises have cut production.