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    Cotton Prices Are Affecting Jiaxing'S Clothing Industry.

    2010/11/18 14:53:00 34

    Cotton Garment Orders

    "Cotton prices jump, my heart will jump."

    Haining

    Zhang Qingfei, general manager of Xin Shi Xin Weaving Co., Ltd. has been a little annoyed lately.

    Trade

    The rise of protectionism has also given him a headache.

    A few days ago, the US House of Representatives passed the exchange rate reform to promote the fair trade act.

    The adoption of the plan reflects the rise of protectionism in the United States.

    This news makes many textile and garment enterprises in our city sigh: "orders are more difficult to pick up, and profits are thinner."


      

    "Yes.

    訂單,沒人做;有人做,沒錢賺”

    "Although the global economy is getting warmer this year, the situation of foreign trade enterprises has not been very good. The growth of business volume is disproportionate to the increase of profits. Now, there is" order, no one does it; some people do it, and no money makes it ".

    Yesterday, Xu Peiyuan, director of Haining Home Textile Association, told reporters that the profit rate of the home textile industry was 6.8% in the beginning of this year, and this figure has dropped to 6.6%. In addition to the recent appreciation of the RMB against the US dollar, domestic raw material price increases have also caused heavy pressure on enterprises.


    It is reported that the price of cotton and polyester yarn presents "jump price" in recent years, sometimes it can rise one thousand or two thousand yuan per ton per day.

    enterprise

    The price of the raw material is determined in advance, and the order is signed to avoid the risk of price fluctuation.

    While most enterprises choose short orders and more single customers, they are mainly old customers.


    The relevant people of the Municipal Bureau of foreign trade and economic cooperation said that the export enterprises usually have a cycle of several months from receipt to delivery. During this period, the large fluctuation of the cost may bring unexpected risks.

    In the face of international market protectionism warming, exchange rate instability and other factors, conservative orders are becoming the same choice for enterprises.

    But in the long run, it also contains risks.

    "If domestic raw material prices continue to be high, customers are likely to pfer orders to other countries such as India, resulting in the loss of buyers."

    A clothing enterprise official told reporters.


    At the same time, as the main export market of our city, the United States is trying to improve employment by "remanufacturing". This will inevitably trigger the protection tendency of the real economy, such as manufacturing industry, which means that our textile and garment industry will also face the challenge of output market and industry.


    Jiaxing textile under multiple pressures


    Transformation of garment industry


    Textile and garment is the traditional "large household" of our city, accounting for 40% of the total export volume of the city.

    Take textiles as an example. From 1 to September this year, our foreign trade enterprises exported 1 billion 841 million US dollars of textile products, an increase of 32.9% over the same period last year.


    Zhang Xingfang, deputy director of the Municipal Bureau of foreign trade and economic cooperation, said that although the major economies in the world are recovering slowly, the foundation for a better economic recovery is not solid.

    RMB appreciation pressure, inflation expectations and unemployment rate remain high. The big environment does not support the industry's substantial rebound.

    In the fourth quarter, the fluctuation of raw material prices and exchange rate will be the main reason for the future market.


    How does the textile and garment industry respond to this round of market quotation? Zhang said that in addition to improving the quality of its products, it should also hedge through the participation of foreign exchange futures and cotton commodity futures, so as to cope with the risks brought by exchange rate and raw material price fluctuations, and try to get through the intermediate links, set up marketing windows outside the country, and do business with the terminal businesses directly.

    Take Haining as an example, a number of enterprises, including Xin Shi Xin Weaving Co., Ltd. have set up 6 marketing windows overseas, which help to reduce foreign trade risks and increase profits.

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