Cotton Prices Plummeted 30% Of Fujian Textile Enterprises Were Hurt &Nbsp; Clothing Prices Will Not Fall.

From last year to now,

Such big ups and downs

Textile enterprises cried for days.

"Sad day!" yesterday afternoon, facing reporters, Mr. Wu, general manager of Quanzhou Chicco textile and Light Co., sighed.

It is the loss of cotton prices in recent months that has brought him such a textile entrepreneur.

China cotton information network data show that in May last year, cotton prices were 17000 yuan / ton, 6 months later rose to more than 30 thousand yuan per ton, to February this year, cotton prices set a record of 35000 yuan / ton.

Since April, domestic cotton prices have dropped rapidly on average at 500 yuan per ton per 3 days.

In two months, cotton prices fell back to 22000 yuan / ton, or nearly 30%.

"This means that an average loss of ten thousand per ton of cotton will be lost.

If you save 3000 tons of cotton, you will lose 30 million yuan.

Mr. Wu told reporters: cotton prices rose sharply last year, and many textile companies began to buy large quantities of raw materials.

But since the price of cotton has fallen sharply, the inventory of textile enterprises has also seen a sharp drop in prices. The more inventory the company has, the more it loses.

Fortunately for Mr. Wu, as a small and medium-sized textile enterprise, Chicco did not accumulate a lot when cotton prices soared last year.

In Quanzhou, where textile industry is flourishing, it is very common for textile enterprises to pay huge losses because of hoarding cotton.

It is understood that because of the fluctuating cotton price and the possibility of falling, many textile enterprises are afraid to make a long list.

According to an industry insider in Xiamen, "the current textile enterprises are mainly short orders, which has become a common phenomenon. Most customers' orders are within 3 months, even if the orders of foreign customers are no exception."

There is also a headache for textile enterprises. Even now, even if we want to lose money, the order is still very small. This is due to the psychology of "buying up or not buying".

"Customers expect cotton prices to continue to decline, and in order to wait for price lows, it is very difficult to do business lately," he said.

Mr. Wu said.

Clothing prices will not drop or fall.

Analysts said that this is mainly because the past few months, the domestic cotton prices have gone all the way, resulting in the market is far more than the demand situation, and thus lower domestic cotton prices.

Because of the high cotton prices since last year, many garment enterprises have to rise in price under the pressure of cost.

Now that cotton prices have fallen sharply, will the price of clothing be reduced significantly? Many consumers are looking forward to getting tangible benefits, but this may be wishful thinking.

At present, it is the season when the summer wear is on the market. Miss Li went shopping in the mall and found that this summer wear is generally 10% to 15% more expensive than last year. "The same style skirt last year was 399 yuan, but this year it sold 449 yuan!"

"Garments are purchased from raw materials to production for more than half a year.

The summer wear on the market is now produced when cotton prices surged last year, and there is no link with the fall in cotton prices.

Wu Shihui, chairman of the company, thinks that the soaring cotton prices last year is indeed one of the reasons for the rise in summer wear this year, but it is not the main reason.

"For the upstream textile enterprises, cotton prices do have a great impact, but from the perspective of clothing production and sales enterprises, raw materials account for only about 20% of the total cost, and the highest will not exceed 30%."

Wu Shihui said that clothing prices in the labor and channel costs continued to rise is the direct cause of clothing prices.

The industry believes that even if cotton prices continue to fall, the trend of rising clothing prices is also difficult to change this year.