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    Clothing Consumption Peak Season Is Not Flourishing, Printing Or Dyeing Industry Or Reshuffle During The Year.

    2011/4/28 9:19:00 64

    Cotton Price Market DownturnTextile And Garment Environmental Certification

    All the way down the road.

    Cotton price

    The pressure has been pmitted to the upstream dyestuff industry.

    In April 26th, reporters learned from the China International dyestuff industry and Textile Chemicals Exhibition held in Shanghai that many dyestuffs enterprises began to run losses because of the high cotton prices.


    "We must be losing money in the first quarter of this year."

    Huang Hongying, deputy chief executive of Taixing Jinji dyestuff Co., Ltd., the largest producer of reactive dyes in China, told reporters that the cost of producing reactive dyes has increased by 20%. However, the price of dyes has not risen, or even reduced, because the orders from the lower reaches continue to decrease.


    This is the first loss in the past few years.

    "Last October, businesses began to feel the market environment was deteriorating."

    Huang Hongying introduced that cotton prices rose last year, and many of their downstream buyers abandoned cotton yarn business to make chemical fibers, and the market orders fell rapidly.


    "Generally 3-5 months is

    Textile and clothing

    Traditional consumption season, but this year's peak season is not prosperous.

    Huang Hongying said that she felt that this year's exhibition was rather cold and cheerless. It was estimated that the high price of cotton would last for 1-2 years.

    (editor's note: Fitch, an international credit rating agency), said that with the rise in cotton prices at the first wavelength since the 90s of last century and the rising labor costs in China, many American brand clothing manufacturers from North Face, Lee jeans to Levi 's will be forced to raise their clothing prices this year, which will be 15% higher than last year's 27.


    Reactive dyes are mainly used in cotton, linen and other textiles.

    According to the data of China Dyestuff Industry Association, at present, hundreds of enterprises producing reactive dyes in China are producing 500 thousand tons per year, but the market demand is only 350 thousand tons this year.


    "The industry generally estimated that half a year to shuffle, but I can not see that a month may be a business to raise prices, is the death of a live horse on the outcome."

    Xie Jiangang, director of marketing of the domestic dyestuff industry, Zhejiang Longsheng (600352) group Limited by Share Ltd (600352), judged that due to the low production threshold of reactive dyes, small factories and small orders, most enterprises are afraid of losing market share and dare not raise prices, but the continuous high price of cotton will inevitably accelerate the industry shuffle.


    Public data showed that by the end of 2009, the bulk commodity prices of cotton were 14873 yuan / ton, and in 2010 it had been raised to 32000 yuan / ton. In April 26, 2010, China's Cotton (328) price index showed 28300 yuan / ton.


    At the same time, the "safety" requirement from downstream textile and garment enterprises is also promoting the reshuffle of the dyestuff industry.

    Tian Liming, Secretary General of the China Dyestuff Industry Association, said that at present, some large textile and garment enterprises began to list their own "list of chemicals restricted substances", and put forward many prohibitions on the dyes for purchase.


    Tian Li Ming said that in order to help dye enterprises attract more buyers, the association has launched the "certification list of chemical testing and certification enterprises" with the international authoritative inspection and certification agency Tianxiang group, providing guidance to downstream buyers.

    "Generally speaking, certification can increase the trust of downstream dyeing and garment enterprises and increase orders."

    Xie Jiangang said, for many enterprises, from

    Environmental certification

    The pressure is even greater.

    Market downturn

    Pressure.

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    In the 10 months from last year to the middle of last year, commodity markets, especially agricultural products, have gone through a process of shifting their focus. Cotton is clearly the star of this change. Cotton price in the US market has almost doubled two times, from about 70 cents per pound to 210 cents.

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