Tracking: Where Does The Cost Of A Garment Come From?

Cotton prices are still high.

It is understood that in the past two months, cotton prices continued to high fever, seed cotton purchase price from 4.1 yuan / jin to 7.1-7.2 yuan / Jin, up 76%; lint price from 18000 yuan -19000 yuan / ton to 31500 yuan / ton, or 70%.

Jin Tao, general manager of Jingshan Yinfeng Cotton Industry Co., Ltd. believes that the rising price of cotton is a concentrated outbreak of supply and demand contradiction.

"On the one hand, it is expected that cotton production will exceed 10% this year. On the other hand, the resumption of China's textile industry will bring support to the cotton market."

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However, Ken Chan, an analyst at Xiangcai securities, pointed out that with the improvement of climate and the adjustment of the state, the foundation of cotton price rise is weakening.

A series of liquidity tightening signals of the central bank will have a greater impact on the movements of the idle capital. Once the idle capital is withdrawn, and the policy adjustment to resolve the expected reduction is made, cotton prices will rise or postpone.

It is understood that since last week the national development and Reform Commission and other seven departments issued an urgent notice, put forward six measures to safeguard the current cotton order, high fever "cotton price" finally began to fever.

"This week, the purchase price of seed cotton has dropped from 7 yuan to 6 yuan, and lint also dropped by 2000-2500 yuan per ton."

Zhang Xiaoping believes that cotton prices will remain stable over a long period of time, but the current price is still high. Cotton spinning enterprises with insufficient stock will remain a challenge.

Cotton companies dare not take orders

While cotton prices are rising, textile companies are raising their prices.

"Cotton yarn and cotton market synchronization."

Sun Jinsong, deputy general manager of Hubei Xiao cotton group, said that the price of ordinary cotton has risen from 26000 yuan / ton in September to nearly 48000 yuan / ton in November 11th, while the price of combing 40 has risen to 50000 yuan / ton.

Xiao cotton group is a leading enterprise in Hubei's textile industry. Its annual demand for cotton is nearly 60 thousand tons, mainly in Hubei, Shandong and Xinjiang.

Soaring cotton prices made Sun Jinsong uneasy.

On the one hand, too much raw material purchase has forced him to repeatedly stock up.

According to past experience, cotton mill stock should at least guarantee production for more than 3 months, but only 1-2 months of storage cotton can be saved this year.

"Cotton prices are too high, so they dare not store up goods in large quantities."

It is understood that in 2008, cotton prices dropped from the highest 18 thousand yuan / ton to 9000 yuan / ton.

On the other hand, the soaring price of cotton not only means that the cost of textile mills is rising, but also means that industrial risks are gathering to them.

When an enterprise signs an order with a customer, it mainly considers the price of raw materials at that time.

"We often pick up all the orders this month in advance. If the delivery is performed according to the contract, it is actually a loss. We calculate that it is a common loss of 3000 yuan per ton of cotton yarn."

"But the price is too high for some customers to accept."

Another textile business owner, who did not want to be named, said: "the fast rising cotton price has made it impossible for us to quote the price. Maybe today we have reported the price and will lose money tomorrow, so I haven't received the order since October."

It is understood that before the decline in cotton prices, some strong textile enterprises have begun to adjust the product mix and increase the utilization rate of non cotton materials.

"But it can only be expedient.

Today, raw materials such as chemical fiber are also rising.

And some small and medium-sized textile enterprises with tight funds have chosen to cut production or stop production.

Clothing costs increase

Downstream garment processing plants feel the pressure from the "whole cotton chain, fabric, processing" across the whole industry chain.

The owner of a garment factory in Hanyang, who asked not to be named, told reporters that the price of cotton yarn last year was 28 yuan a kilogram, but this year it has risen to 48 yuan a kilogram. If we use 500 grams of cotton yarn to calculate a garment, the cost of each garment will be 6-7 yuan.

"The cost of fabric is 50% more than that of the same period last year. Besides cotton, the price of polyester, acrylic and other synthetic fabrics has also risen to varying degrees."

The owner of the garment factory said yesterday that it had just asked the upstream enterprises for the price, some of them were very high, and some were simply saying they did not.

As an insider, he knows that "no goods" is just a perfunctory phrase. In fact, the other side is too low on its own price or hoarding goods to wait for a higher price.

The reporter learned from the wholesale market of Wuhan Jia Zui cloth that all the fabrics this year are more expensive than last year, and cotton prices are the fastest.

A boss revealed that one metre of cotton cloth originally sold for 11.8 yuan, now sells 17.8 yuan, this month Guangzhou factory even does not offer, the woolen material is also expensive about 30%, rises 5-10 yuan per meter.

"In the overall cost of garment processing enterprises, the cost of raw materials based on fabric accounts for about 70% of the total cost, and the rapid increase of cotton yarn and fabric brings us greater pressure."

The boss reluctantly told reporters that the processing plant was mainly a foundry for a certain brand of clothing in Wuhan. The profit space was already very low. Now it is "double faced pressure". On the one hand, raw materials must be purchased at a high price. On the other hand, in the face of strong brands, bargaining power is also very limited.

In addition, the rise in labor costs is also a difficult problem he can not avoid.

"7788 plus, the total cost is 50%-60% higher than last year."

The boss said.

Cotton - spindles - cotton cloth, the cost has been stacked up and down, and has been pmitted to the consumer goods market. The manager of a brand clothing business in Wuhan told reporters that the autumn and winter clothes produced by their enterprises began to raise prices after the national day, and the increase was generally around 10%. "No way, the cost increase can only be passed on to the consumer market."