Cotton Merchants Have No Choice But To Raise Prices?

Cotton price

Purchase price exceeds historical extremum

Mengaiti county is a traditional cotton producing county in Kashi, Xinjiang.

The reporter learned from the biggest cotton and linseed company in the county that the company acquired 22 thousand tons of seed cotton last year, so far this year only received 8500 tons. The purchase price was 6 yuan per kilogram last year, and this year rose to 12 yuan to 14 yuan.

At the end of the acquisition of real estate cotton, the rising momentum has not yet ended - 9, the local purchase price of 14.2 yuan per kilogram, and 10 days continued to rise to 14.5 yuan.

Huang Linjiang, general manager of cotton and hemp company in Mengaiti County, said that more rain this year led to a reduction of cotton production by more than 35%. The increase in the cotton price of this round has the factor of speculation among middlemen, but the impact is very small, mainly due to the imbalance between supply and demand.

Suzhou silver cotton company has been engaged in cotton purchasing and processing business for a long time. Liu Ming, general manager of the company, said that the cotton purchase volume last year was only about half of last year. The acquisition cost rose from 14 thousand yuan per ton last year to 32 thousand yuan, exceeding the historical maximum value of 23 thousand yuan per ton in 1993 and 1994.

Liu Ming said that China is a big textile country, and the gap of cotton rigidity is very large. In the past few years, cotton imported from abroad (mainly the United States) had not been able to make good reserves when the price was low.

When the gap is obvious this year, the price of imported cotton has also risen to more than 30 thousand yuan per ton.

According to Liu Ming, the rise in cotton prices reflects a long-standing problem of textile and garment manufacturing and neglect of cotton cultivation.

A vicious circle, many years old, was triggered by the accidental factor of climate.

How about the price of cotton cloth? The Shaoxing Keqiao index, compiled by the China Light Textile City and the Ministry of Commerce, shows that the cotton price has changed since last year, and has continued to rise unilaterally, increasing by more than 60% in six months.

Shaoxing China Textile City has the "barometer of global textile trade". Its Keqiao index is based on data collected from more than 1200 merchants.

This month's 1 index report shows that the cotton and flax price index closed at 137.06 on the same day, up 3.32% over the previous period.

Xu Hongping, head of the office of index compilation, analyzed that the cost of cotton yarn has improved significantly because of the sharp rise in cotton prices, and the price of pure cotton yarn in most cotton mills is still rising.

According to the current cotton prices, most mills have lost profits or lost money, so they have to raise the price of cotton yarn to ensure profit margins unless there is a lot of cotton in the early stage of the cotton mill.

A week later, on the 8 th of this month, the cotton fabric price index of the market closed at 115.56 points, rising 3.11%.

Liu Linhu, the boss of textile industry in the 1 District of the 2 floor of the textile market, told reporters that Shaoxing textile and Nantong textile products were mainly purchased from Shaoxing and local printing and dyeing factories to make printed fabrics for home textiles and garment manufacturers. "The main growth is grey cloth, and the cost of printing and dyeing is 1.2 yuan per meter. This year has not changed. I just want to ensure that the profit of 3 cents per metre is sold."

Cotton producers are also under pressure for rising cotton prices.

Pan Yumin, chairman of Shanghai's textile company, complained to reporters that the purchase price of cotton rose, and that the company had more than 100 million yuan of liquidity in the same period in the past year.

Self export

Winter clothing prices generally do not discount.

Cotton prices are rising to the consumer market, the reporter recently visited the major commercial buildings in the city, found that the price of cotton clothing showed a collective upward trend.

Related statistics show that the autumn and winter clothing this year increased by more than 10% over the same period last year, and basically no discount.

In Hangzhou's famous clothing wholesale market in Sijiqing, autumn and winter cotton clothing has also increased by more than 20%.

Yesterday, the reporter visited some large commercial buildings in Pudong New Area, and found that a famous brand of cotton underwear is priced at 250 yuan, up 20 yuan from last year, and the price of cotton jacket is over 600 yuan.

It is particularly noteworthy that the price of down garments and first-line brands often exceeds 2000 yuan.

Sales staff said that in addition to the price increase than last year, this year, the major businesses on winter clothing are almost no discount activities.

The high price has scared away many customers.

Reporters at a well-known cloth store in Nanjing West Road saw that the price of cotton cloth of ordinary quality and general quality reached 22 yuan to 25 yuan per meter, and the quality cotton cloth exceeded 30 yuan, or more than 20% in May this year.

The price of customized clothing in the store is about 10% more than in previous years.

The salesmen of the clothing counters of the major commercial buildings said that the cotton fabrics and clothing produced by the manufacturers decreased significantly compared with the previous years, and the use of fabrics such as fiber, Lycra and acrylic fiber is increasing.

Reporters looked at it and found it was true.

Most of the clothes are marked 50% or 75% cotton, and less pure cotton clothing than in previous years.

The industry expects that most of the cotton purchased recently will be used to produce clothing or cotton textiles for the next season, so this wave of price increases will last until at least next year.