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Cotton Prices Are Higher Than &Nbsp; Foshan Clothing Companies Are Afraid Of Shutting Down.

2010/11/17 16:25:00 54

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"Customers are willing to pay 50% deposit, up to 20% before, but our

enterprise

They dare not take orders, because there is no raw material in hand.

Wu Haoliang, Secretary General of Foshan textile and Garment Association, told reporters.

The soaring cotton has seriously affected the survival of downstream industries, Foshan's more than 5600 garments,

Fabric

Companies sigh sad days, some enterprises in the first quarter of next year, there is a danger of downtime.

Terrorist shutdown in the first quarter of next year

Foshan

There are no cotton mill, but there are more than 5600 clothing and fabric enterprises, of which 1065 are above scale. According to the data provided by Foshan Textile Association, the gross output value of 1~9 in this year is 75 billion 600 million yuan, an increase of 26% over the same period last year, and exports also increased 21.5% over the same period last year.

However, the orders currently made by Wu Haoliang enterprises are all orders from last year and early this year, only enough to last until the end of the year.

Many enterprises do not have orders for next year. Some enterprises may be in danger of shutting down in the first quarter.

"It's not that there is no order, but I dare not answer it," Wu Haoliang said. "Now the client is willing to give 50% deposit, but the business dare not answer it.

Because there is no raw material in hand.

The long cotton and cotton yarn is one price per day, and the medium and long term do not dare to pick it up. Only dare to make a short delivery within a month.

Under normal circumstances, it should be ready for the first quarter of next year's raw materials, but the soaring cotton prices to cotton yarn factory, cotton can not buy cotton mills have to shut down, and this directly affects the start of the fabric factory.

It is understood that the fabric and clothing enterprises in Foshan mainly purchased cotton yarn from four places in Xinjiang, Shandong, Henan and Hubei, but many cotton yarn factories in the region have been closed down, and some have already cut off their supply.

Appealing to crack down on speculators

China Cotton Association website monitoring data show that in November 10th, China's cotton price 328 weighted index was 30861 yuan / ton, compared with March 1st's 15063 yuan / ton, surged 104.8%.

The price of 32 pure cotton yarn has risen to 48000~50000 yuan, up 50% from March to November.

Tan Yanwen, a famous cotton expert in China, said that the reason why cotton prices were skyrocketing was the impact of domestic supply and demand gap caused by natural disasters, and two was the malicious speculation of domestic and foreign social capital.

At present, a large number of cotton traders have been concentrated in Xinjiang cotton area, and a lot of hot money and cotton spinning enterprises compete for cotton resources and continue to push up cotton prices.

But such measures are lacking in strength.

Wu Haoliang said cotton prices are difficult to solve in the short term.

The real difficulties of production enterprises will be concentrated in the first quarter of next year.