Inflated Cotton Prices Burn &Nbsp In Autumn And Winter Wear Market; How Should Textile Enterprises Respond?

Now it is early autumn, the weather is cool, and autumn clothes are on sale.

Reporters recently visited the Ji'nan Kou Kou clothing market, people's shopping mall, Ginza mall, Quancheng road and other stores found that more than half of the autumn clothing showed a trend of price increases, including warm underwear, home clothes, infant clothing, underwear and other clothing with cotton as the main raw material, all of which Rose 15%-20%.

In a brand underwear store at the people's market, the salesperson told reporters that the price of many clothes for autumn wear and thermal underwear had been adjusted: the original price was 58 Yuan Qiu's clothing was adjusted to 68, and 99 last year's thermal underwear had been pferred to 128 yuan.

In the wholesale market of the Kou Kou clothing, a clothing store claimed that he complained to reporters. The price of the five or six brands of his autumn jackets had risen by 10% to 20%. The price has gone up. The number of wholesalers taking delivery of goods has obviously decreased.

The reporter then visited several brands in Quancheng road.

Cotton is an accomplice to help.

From these rising garments, it is easy to see that the increase of cotton clothing is higher than other materials, and the selling price is obviously higher.

The reporter called the manager of Ji'nan head knitting company Zhang manager. "Most of the cotton we use is Xinjiang cotton, real estate cotton and imported cotton.

Now that cotton prices have risen so much, our cost has increased a lot. We can only raise prices to ease production pressure. "

At the same time, Zhang also explained another reason why the autumn clothes began to rise in price: "when cotton began to raise prices in April and May, many enterprises still had stocks, so they were not immediately reflected in ready-made garments.

After two or three months' consumption, the price of cotton yarn has increased by more than 30%, which has brought a great impact to our production. "

According to the statistics of Qingdao customs, the import cotton in Shandong port increased by 65.1% and 1.3 times respectively, up 39% over the first 7 months of this year.

It is reported that cotton prices began to rise as early as the autumn of 2009. As of early July this year, cotton prices have risen by 30% over the 2008-2009 average price in the past year, reaching the highest point in the past ten years.

In September, during the season of textile peak season, the rise in cotton prices was a big surprise.

Media reports said that although Turpan's cotton seed cotton 4 yuan a Jin, has broken the historical record, but the acquisition is still quite difficult.

The price of new cotton in some places reaches 4.1 yuan / Jin, according to the local cotton seed price of 2.1 yuan / kilogram, plus 500 yuan processing fee and 100 yuan profit, removing water, impurities and wastage, the new cotton cost reaches 18000 yuan / ton, compared with last year's 13000 yuan, the price directly raised 5000 yuan, or 38.46%.

At the same time, the demand for cotton for downstream production enterprises has continued to rise. Experts predict that the global demand for cotton is still larger than cotton production in 2011, making the global cotton supply and demand situation continue to be tight in 2011.

Insiders said, "cotton prices will continue to rise.

On the one hand, many cotton suppliers have already been reluctant to sell. They are looking forward to higher prices, which will lead to a tighter supply in the cotton market. On the other hand, it is now the autumn and winter clothing manufacturing period, which is the real demand for cotton.

This will inevitably increase the price of downstream clothing.

How should textile and garment enterprises respond to cotton prices?

In September 27th, the seven departments of the national development and Reform Commission, the Ministry of finance, the Ministry of agriculture and the General Administration of industry and Commerce held an urgent nationwide teleconference on cotton work to analyze the current cotton production and marketing situation and deploy the 2010 cotton work.

The meeting proposed that through the efforts to achieve the 2010 domestic cotton supply and demand balance, to ensure the needs of the textile industry cotton, to safeguard the interests of the vast number of cotton farmers, and to combat malicious speculation cotton behavior.

At present, cotton prices have exceeded the affordability of most textile enterprises.

In the current situation of cotton shortage and high cotton price, how should the textile and garment enterprises deal with it?

First of all, promote cotton production.

In order to promote the production of cotton this year, the state has recently raised the price of the national reserve cotton collection and storage from 11500 yuan per ton to 12000 yuan.

Figures show that if cotton prices rise by 500 yuan / ton, domestic mills alone need to bear more than 4 billion yuan of cost increase, and the sharp rise in prices may make it difficult for downstream processing plants to increase the cost.

The rise of cotton prices has forced some cotton mills to reduce production or even stop production, thus raising the price of cotton yarns. The pressure of rising raw material prices has been pmitted to downstream enterprises such as textiles and clothing, making textile and garment enterprises facing a dilemma. If the factory price is maintained, enterprises will face losses; however, if the price of products is raised, enterprises will lose their competitive edge and lose part of their orders.

Experts pointed out that textile raw material costs accounted for about 70% of the total product, and the change of raw material prices directly affected the operation of the industry.

Secondly, some experts suggested that the relevant departments should take positive measures to keep the cotton prices stable. At the same time, we hope that the cotton import quotas for the next year can be released in advance so that textile enterprises can make preparations.

In the face of the cotton market situation, it is generally believed that there are still many uncertainties in the later stage, such as RMB appreciation, changes in the economic situation in Europe and America, and trade barriers.

Third, in fact, textile enterprises are facing not only the rise in cotton prices but also the shortage of cotton supply. Therefore, the state should establish a long-term cotton strategy, such as building a cotton production base to achieve seed cotton subsidies. Textile enterprises should start from themselves, adjust the yarn and variety structure, reduce the amount of cotton, and realize the diversification of raw materials.