Cotton Crisis Squeezing Global Textile Manufacturing Industry

　　 A top expert claimed that in recent months Cotton price The global textile manufacturing industry has been unable to digest the current situation. High value cotton The global textile manufacturing industry is threatened by its own survival.

　　 Christian Schindler, Secretary General of the International Textile Manufacturers Federation (ITMF), said that the global textile manufacturing industry is being squeezed by soaring global cotton prices and driving up costs. Cotton prices have doubled in the past six months, but retailers continue to keep prices down. Manufacturer The selling price of products is still low.

Because the main emerging economies, such as China and India, have greater demand than expected, while cotton production in some countries is lower than expected, these factors stimulate global cotton prices soaring.

He pointed out that India banned cotton exports in April, and that cotton was also banned from export, which is partly responsible for the rise in cotton prices.

India abolished the export ban in May, adopted a strict export licence and imposed an export tax of 2500 rupees / ton (US $56.45 / ton) on cotton exports.

Christian Schindler, Secretary General of the International Textile Manufacturers Federation (ITMF), said that some markets could change the ratio of cotton / man-made fibers, for example, from 60/40 to 50/50.

Synthetic fiber is cheaper than cotton, even though global oil prices remain high. However, experts pointed out that Milasoa Cherel – Rodson, a commodities expert at the United Nations Conference on Trade and development, pointed out that cotton price pressure is more elastic than synthetic fiber.

When profits are squeezed, there is always a chance to shift to higher end market space, "she said.

However, some experts believe that a higher proportion of synthetic fiber will be a temporary phenomenon.

In the future, cotton prices will adjust, and cotton production in major cotton producing countries will increase, for example, Brazil. Meanwhile, some major markets, such as China's demand, will slow down.

Since April, cotton prices have surged from about 0.60 US dollars / pound to 1.20 US dollars / pounds in October. Some of the futures contracts in the spring of 2011 rose to the highest level in 140 years, more than 1.50 US dollars / pounds.

　 ITMF is the umbrella organization of the world textile industry. ITMF estimates that in the past 20 years, the nominal price of clothing and home textiles has decreased by 50% on average.