Cotton Price Domino Effect Shows &Nbsp; Service Enterprise Restores And Maintains Production.

When the price of cotton is rising, the garment manufacturers will replace the part with polyester staple fiber.

Domino effect of cotton price

Cotton rises at a price a day.

Haitong Securities latest data show that last week, viscose staple fiber, PTA, cotton pulp, polyester staple fiber and other products prices rose, of which viscose staple fiber prices rose by 15.68% a week, PTA prices rose by 13.72% a week, cotton pulp and polyester staple fiber also rose by 11.43% and 11.20% respectively.

"Last week it was only about 13000 yuan per ton, and it was 18000 yuan in a blink of an eye."

Dongguan Wiebe textile and garment factory responsible person thinks, "the main raw material of polyester staple fiber is PTA has been rising, polyester staple fiber break 20000 yuan is only a matter of time."

Haitong Securities pointed out that the price of polyester staple fiber will also rise as the price of PTA rises.

A clothing business person said, polyester staple fiber is the most direct substitute for cotton, now the cotton price has been over 30000 yuan / ton, polyester staple fiber no reason not to raise prices.

Usually, the price difference between cotton and PET staple is about 20%. If cotton price is more than 20% higher than that of polyester staple, the market demand of some cotton will turn to polyester staple fiber.

If less than 10%, it will turn to cotton.

At present, cotton price is nearly 100% higher than that of polyester staple fiber, and the amount of cotton instead of cotton will be larger and larger.

Under the influence of cotton prices, the price of garment accessories such as polyester fiber, artificial cotton and wool has also risen to varying degrees in recent years, and the price Domino effect of textile raw materials has risen.

No alternative to producing garments

In the domestic textile market, the proportion of cotton, polyester, viscose used in the three categories of cotton spinning materials is about 50:35:10, and other materials account for about 5%. Polyester staple fiber is the most direct substitute for cotton because it can be blended with cotton.

"In order to avoid the increase in production costs, especially in the case of rising cotton prices, we will expand the use of polyester and water washing in autumn and winter this year, or appropriately reduce the content of cotton in cotton clothing, and add some materials such as viscose, synthetic fiber, polyester fiber and so on.

As early as August this year, a clothing company in Cha Shan made a plan for the high cotton price, when the cotton price was still 17000 yuan / ton.

In the clothing industry, the cost of raw materials accounts for about 70% of the total cost of the enterprise. At present, cotton and other raw materials are soaring. Facing the increasing cost pressure, enterprises are racking their brains to find alternatives.

"At the end of the year, the inventory of general enterprises is running out, which is the time to reserve materials for the next year, but at this price, enterprises dare not have the ability to purchase according to the original plan."

Tian Mei Clothing Co., Ltd. responsible person said that the price of products at the factory price space is not large, enterprises only dig profits on raw materials.

"Some enterprises that have low bargaining power have even failed to meet the requirements of the proportion of raw materials for production and use to maintain profits."