Buyers Borrow Cotton Prices To Explore Prices.

"Cotton production has declined before, but now orders are dropping more. Many customers choose to wait and see.

And some time ago, our customers chose to wait and see because of our high price.

Ye Yuqiao, assistant general manager of Guangdong silk International Group clothing company, told reporters that with the decline of cotton prices, export orders prices will also drop.

For domestic

Labor costs and other costs are rising.

Cao Xiaojian said that although the price of cotton has dropped a lot, the price of chemical fiber is still rising, coupled with concerns about the drawback of the tax rebate rate, it is not easy to reduce prices, as overseas guests demand a 10% reduction, and domestic enterprises are generally reluctant to accept it.

At present, cotton price down is a good thing, but the cotton price has dropped to the influence of the current order is relatively weak, because a lot of cotton yarn factory high priced purchase also need time to digest.

"The decline in cotton prices now will be good for our orders, and it will probably be reflected in the second half of the second half."

For cotton spinning enterprises, a sharp drop in cotton prices is definitely not a gospel.

Because textile enterprises usually have a few months' inventory, many enterprises stock the cotton that they bought when the price was high. At present, with the decline of downstream products, the price inversion of products and raw materials is inevitable for textile enterprises.

"It is estimated that some spinning mills will stop production and go bankrupt in the coming months."

Ye Yuqiao said, "however, the overall impact is limited, we are afraid to buy raw materials, reduce the amount of purchase, so the price will drop, the stock volume is not very big."

Ye Yuqiao believes that frequent fluctuations in cotton prices have a great impact on the entire textile and garment industry and directly impact on orders for clothing exports.

Price stability is a very important factor.

Like the RMB exchange rate, companies can estimate the extent of their fluctuation, but now cotton speculators are too powerful to affect the whole market.

Ye Yuqiao said that orders for export clothing remained sluggish for more than a month after the end of this spring's fair.

Prices were high for some time ago, and many customers chose to wait and see. Now cotton prices have dropped and customers are still waiting.

"Now that we have been waiting for a few months, and then wait for a while, it is estimated that we will be even more miserable."

Cao Xiaojian also said that at present clothing export orders are still not prosperous, many orders are relatively small, and the delivery period is relatively short.

The growth rate of export of textile and clothing this year is down compared with that of last year.

The main reason is that there is no recovery in the European and American markets, and the other is that the cost pressure of the whole labor intensive enterprises in China is too great.

"Some small and medium-sized garment enterprises in Zhejiang and Guangdong have chosen to shut down."

Influenced by many factors, such as international cotton price, domestic cotton supply and speculative capital speculation, domestic cotton prices have been in an unstable state, and the ups and downs of cotton prices have made textile and garment enterprises take a higher risk.