Cotton Prices Soar &Nbsp; Domino Domino Effect Highlights

The price of a kilogram of cotton has been successfully realized in a few months. This can bring joy to cotton purchasers. However, "the city gate is on fire and the fish are in trouble." the pressure of rising cotton prices is constantly being pmitted to downstream industries such as weaving, printing and dyeing, clothing, home textiles, and so on. The Domino dominoes effect is being staged.

Supply exceeds demand.

Cotton prices are soaring like a runaway wild horse in recent days.

The reporter learned from the "national cotton price list" published by Baba net in March 2011 that as of March 2nd, the price of 328 grade pickup of Xinjiang lint reached 31113 yuan / ton, which was more than 10% higher than that at the end of last year.

When did crazy cotton prices start to go crazy?

To this end, reporters from the relevant network, newspapers, internal data collate from 2009 to the present three years of cotton price chart: since the second half of 2009, cotton prices began to rise steadily, to the end of 2009, has reached 14873 yuan / ton.

After entering 2010, cotton price rising trend intensified. In June 2010, cotton price had broken through the 18000 yuan / ton mark, and thereafter, the cotton price rising cycle was skyrocketing.

The cotton price rose obviously after the "eleven" in 2010. By the middle of November 2010, cotton price reached a record 33000 yuan / ton, which was nearly two times higher than that in the same period in 2009.

However, since then, in the context of the market's heightened fear and the vigorous control of the state departments, the cotton price has been changing all the way to sing. The Rockets, like fuel consuming rockets, have been swerved. Until December 2010, cotton prices have been hovering around 27000 yuan / ton.

When people play the exciting roller coaster game with cotton prices, people under reason can not help asking why cotton prices are so volatile.

"Shortage of supply is the main driving force for cotton price rise."

Xu Xiaoqing, Vice Minister of rural economic research of the State Council Development Research Center, said in an interview with reporters.

Reporters learned that in 2008

However, with the weakening of the financial crisis, the export of China's textile and garment industry has been restored, and the demand for cotton has increased significantly.

According to the Ministry of agriculture data, in 2010 1-6, textile and clothing exports amounted to US $88 billion 800 million, an increase of 22% over the same period last year.

In this way, "far less than needed" situation, we have to let cotton prices fly.

In addition, hot money is another driver of cotton prices.

Reporters have learned that since 2010, hot money has entered the market on a large scale and invested in the speculation of commodities. Even garlic, mung beans, apples and so on can not be spared. As the main raw material of textile and clothing, cotton is also in the "black list" of hot money, and with the increasing intensity of speculation, many enterprises are hoarding.

Clothing,

"Cotton prices soar and clothing companies are under great pressure."

Huo Yinfen, chairman of Jiangsu honghongying Garments Co., Ltd., interviewed by the China United Daily, said in a telephone interview.

The Domino domino effect has been highlighted, and the pressure of cotton price rising is continuously pmitting to downstream industries such as weaving, printing and dyeing, clothing and home textiles.

She told reporters that the cost of producing a garment, raw materials accounted for 25% to 50%, raw material prices, coupled with the labor shortage caused by rising labor costs, pressure on enterprises, had to pass the price to consumers, so the trend of clothing prices this year has been set.

A powerful and large-scale garment enterprise can still work, but the fate of some small businesses is not so optimistic.

"Now we can get a gross profit of 5%."

Yang Wenda, general manager of Lina clothing company in Shenzhen, was very upset when he interviewed China United Business Daily. They signed an order of 400 thousand uniforms in the previous paragraph, earning 1.5 yuan according to the original plan of a garment, but when processing the order to the processing plant, the processing plant refused to accept it. The reason is that the price of raw materials is rising and the cost of labor is increased, so that the processing fee of 3 yuan per piece can be increased, so that profits can be made.

"As a result, the goods have lost 600 thousand. How can we live in a small garment factory with insufficient capital chain?"

Home textile enterprises also can not escape this disaster, Wu Ronghua, general manager of Ningbo Bo Yang home textile, told reporters that since last June, the purchase cost of cotton bedding has increased by at least 50%.

It is reported that Bo Yang home textile opened shop, the main customer group is more sensitive to price, so the price of online shop has been set low, the most common set of four sets of cotton bed, before the price of 300 yuan is not yet, now has risen to nearly 450 yuan.

"For example, the purchase price of the most common cotton 12868 (cotton cloth per square inch density is 128 * 68") is for example, the purchase price in the middle of last year was 10 yuan per meter, and now it has risen to 15.5 yuan.

Wu Ronghua said, "if the price goes up again, the price of the product will have to be raised again."

The comparison of the profits of China's home textile industry association to 50 domestic textile enterprises, 50 bedding enterprises and 15 towel enterprises shows that in the first 8 months of 2010, the profits of bedding enterprises were the highest, with a cumulative increase of 57.9%, followed by cloth enterprises, with 44.4% profit growth, and the slowest growth rate was towel enterprises, only 24.7%.

The reason for this is that the price of cotton yarn, which is the main raw material of towels, is higher than that of the main raw material of bedclothes and the main raw material of polyester fabric, in the words of Yang Zhaohua, President of China Textile Industry Association.

In addition, towel enterprises independently bear a long production process, and cotton yarn rises too fast, resulting in the downstream enterprises difficult to digest and control.

Yang Zhaohua admitted that due to the excessive price of raw materials, the orders and long-term orders in the two quarter of autumn and winter were severely damaged, resulting in further compression of the profit margins.

Every enterprise has its own {page_break} to deal with crisis.

"Facing the irreversible reality of cost increase, only by strengthening the brand, improving the quality of products, improving the management level and improving the added value of products can we better cope with the crisis."

Huo Yinfen, chairman of the Red Eagle, told the China United Business Daily that if consumers were faced with fashionable and branded clothing, they would accept slightly higher prices.

But for a foundry without its own brand, no hawk hawk confidence.

Master Zhao is the fabric buyer of Zhou Shi Yilin clothing company in Hangzhou. Every two or three days, he will go to Keqiao and other fabric market to purchase fabrics. The most expensive purchase is cotton cloth. Last year, the purchase price per meter is thirty yuan, and now it will be forty or fifty yuan.

Master Zhao said that the price was stable after the year, but now the enterprises are running less, and other enterprises are starting up, and the price is bound to rise.

Even so, master Zhao still did not dare to hoard goods, because clothing companies were based on orders, and with limited liquidity, they could only buy as much as they needed.

As cotton prices rose again and again, Cowboy brand manufacturers and manufacturers finally sat down and began to search for more durable alternative materials.

On the newly concluded cowboy salon, AdrianoGoldschmied, the cowboy master, thinks that designers need to purchase fabrics in a broader perspective. The future jeans may be made of new materials such as milk fiber, bamboo fiber, Tencel, viscose fiber, rayon and so on, and the development of recycled cowboy fabrics will also become a trend.

It is expected that 2012 will be the world of color, light and functional denim.