Cotton Prices Staged A "Crazy" &Nbsp In History, And Profits Fell From Export Service Companies.

In 2010,

Domestic 328 grade cotton spot rose from 15000 yuan / ton at the beginning of last year. In September, it accelerated to a higher level. Almost every day it hit a new high. In November 11th, it plunged to 26000 yuan / ton after hitting the peak of 31235 yuan / ton. In December, it gradually stabilized and remained at 27000 yuan / ton.

The craziness of cotton prices has led the entire textile and garment industry to experience the most exciting year. Behind the overall price rise of the whole industry, there are several unhappy families.

Last year, it was a good harvest for the upstream enterprises in the textile industry, many large cotton suppliers, cotton yarn, cotton cloth, and so on.

According to the National Bureau of statistics, in 2010 1~11, the textile industry realized a profit of 200 billion 400 million yuan, an increase of 69 billion 800 million yuan compared with the same period last year, an increase of 53.5% over the same period (25.4% in the same period in 2009 and an increase of 50.6% in 2010 1~8).

And textile

However, the price range of textile and garment industry chain is different, and the degree of cold and warm is different.

Because of the substantial increase in raw material prices, downstream garment enterprises generally have a relatively high pressure, and some enterprises, especially export garment enterprises, have seen a drop in profits.

Zhong Haosen, assistant general manager of Guangdong textile import and export Limited by Share Ltd, said that the average price of textile raw materials increased by 20%~25% last year, while the export clothing orders increased by only 5%~10%, and a considerable part of the cost was still digested by the enterprises. Last year, the gross profit of the enterprise had dropped from the original 8%~12% to 5%~7%.

Cotton prices are driving up fabric prices. The price of one yard cotton denim at the beginning of last year was around 12.3 yuan. In the first half of September to early November, the fabric factory offered a price of 18.8 yuan per day, or more than 50%.

A similar pair of jeans, in November 2010, the fabric cost increased by 8~9 yuan compared with the beginning of 2010, although slightly decreased by 1~2 yuan in December, but for clothing enterprises, the cost of raw materials is still not small.

{page_break}

"Now in the off-season, orders are decreasing, and prices are much harder to talk about.

Last year, it was difficult for garment factories and trading companies, but upstream suppliers of raw materials were very moist.

For example, a ton of 32S superior cotton yarn, 38 thousand yuan already has the money to earn, but some cotton yarn factory has hoarded the opportunity, from last September to November this time, from 41 thousand yuan / ton to 52 thousand yuan / ton, the difference price partial profit is quite considerable.

The cost pressure is basically pferred to the downstream garment enterprises, but it is difficult for garment enterprises to pfer all the rising costs to overseas buyers.

Zhong Haosen said.

Zhu Sujun, assistant president of Ningbo Shanshan stock company, also mentioned that the cost rose sharply last year, and cotton prices basically rose every month. Clothing orders could not be fully borne by customers through the increase in price. Although the total export prices and clothing prices in 2010 were all higher than those in 2009, the increase in prices was not enough, some of them were internal digestion, and profits were not particularly optimistic.

The cost is still high and will affect the order in 2011.

The price increase is more difficult this year, and a price increase is expected to pfer customers to other countries or regions.

Wang Yisheng, director of Lotte children's clothing, said that this year, domestic brand sales are more optimistic than exports. Domestic prices have risen by 20%~30%, consumers still can accept, but export bargaining power is relatively weak, price increases are hard to get through, and consumption in the international market has not yet fully recovered.

Chen Lingmei, chairman of Shenzhen winner Clothing Co., Ltd., which is mainly made up of domestic women's wear brands, said that this year's brand clothing retail price rose by 20%~30%. Although it failed to fully absorb the rising cost, the domestic market was not bad. Sales volume is expected to reach 1 billion 100 million yuan this year.

The new height of yuan / ton is mainly due to the shortage of cotton. The market supply and demand still make the price of textile and clothing industry in the normal range. In 2010, the situation is very complicated. There are not only simple supply and demand factors, but also factors such as speculation and accumulation of idle funds, all of which push prices up alternately, and cotton prices drive up the price of cotton yarn and fabric. In addition, the price rise of cotton yarn and fabric, in turn, pushes cotton prices up further, causing cotton prices to nearly double in one year and increase by more than 80% in the whole year. This increase is extremely rare, which is not conducive to industrial development, easy to leave sequela, plus RMB appreciation and other factors. It is expected that the entire textile industry will develop more passively in 2011, and the situation is not very optimistic. Textile industry analysts pointed out that in 2003, China's cotton prices also rose rapidly, then rushed to 18000.