Domestic Textile Market Will Remain Oscillatory

December 18th, the domestic cotton spot prices have stabilized in recent years, and the China cotton reserve management company has said that this year as a year.

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On the other hand, according to the national cotton market monitoring system, nearly two weeks from mid November to early December, the average turnover of lint week was about 98 thousand tons, only 52.5% of the same period in the previous year.

According to the survey, as the downstream gauze Market is showing a weak position, most textile enterprises have been waiting for a while. The purchasing intention of raw materials is weak. Only some small mills have started to make enquiries due to the obvious consumption of raw materials inventory, or they will enter the market in the next one or two weeks.

It is worth noting that although China's textile and garment export enterprises have been able to achieve price adjustment despite their recent rebound in international market demand, the profit has dropped by 5% over the same period last year, because of the rising price of labor and raw materials.

According to statistics of the first textile network, the cost of raw and auxiliary materials increased by about 30% to 80% this year, and cotton and other main raw materials increased more than doubled.

The labor cost of enterprises has also risen to varying degrees, and recruitment difficulties are troubling enterprises.

According to enterprises in Jiangsu, Zhejiang and other places, factory recruitment is only seven or eight last year, or even less than 50%. Enterprises can only raise staff salaries substantially, and the salary increase in the Yangtze River Delta and Pearl River Delta is generally 20% to 40%.

In addition, the state's efforts to increase energy conservation and emission reduction will objectively increase the cost of environmental protection for enterprises.

The comprehensive increase of cost tests the ability of the textile industry to digest costs, resulting in the continuous compression of the export profit margins of enterprises.

The latest PMI data released in November stimulated the continuous rebound of most commodity futures prices in the country. In addition, the international cotton prices rose sharply, and Zheng cotton futures rose, and cotton sellers' mentality of selling again increased.

China reserves cotton management company said that for textile and garment enterprises, the future period will still be stranded in cost.

In the first 10 months, the export volume of China's textile and clothing has exceeded the total amount of last year, and exports are expected to reach US $200 billion for the whole year.