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    The High Street Brand Chases Cotton Prices Up &Nbsp; Is Cheap Clothing Terminated?

    2011/7/12 10:06:00 65

    High Street Brand Cotton Prices Rise Cheap Clothes


    In the three months ended March 31st, H&M's pre tax profits fell by 18%. They attributed the result to soaring cotton prices and inflation in Asian wages. Last week cotton trading in New York increased by 13% to $1.65 a pound. The International Cotton Council said that the rise in cotton prices came from fears of poor cotton harvest in the southern US.


    In March 7th, cotton prices reached the peak of 140 years, that is, 2.2 US dollars per pound, two times the cotton price last year, leading to a sharp reduction in H&M profits of the Swedish fashion giant.


    Allen Terhaar, executive director of the international cotton Commission, is responsible for the work of the US cotton Committee. "Will we continue to see the deflation of clothing and furniture prices? Maybe not," he said. Consumers will not buy clothes as they used to. "


    The rapid growth of the middle class in China, India and Brazil is promoting the long-term growth of clothing prices.


    Terhaar said: "the real reason for increasing demand is in emerging markets. From now until 2025, it will increase by 20 million tons. fibre The demand for the United States will increase by only 500 thousand tons. Total demand in China and India is expected to increase by 1400-1500 tons. It all depends on their population and economic growth. "


    The growth of supply chain costs, as well as floods in Pakistan and Australia, have also led to price pressures.


       Retailer It's not just cotton prices. The price of wool is also growing rapidly. Earlier this year, the flood of Queensland increased the wholesale price of wool in Australia, the largest wool producing area in the world, almost doubled, and the price in June reached $15 per kilogram.


    However, the news that cotton prices are rising again may be a warning to British retailers. Many people think that cotton prices may ease at the end of the year. Lord Wolfson, chief executive of Next, won public attention last September. He said clothing prices for the spring and summer series could increase by 8% this year.


    Bad weather in the United States is also one of the reasons for the rise in cotton prices, because 40% of the world's cotton. Trade They are all from the United States. In May, several states in the southern part of the United States were flooded by the Mississippi River, and Texas suffered another drought in June. {page_break}


    "Texas has suffered the worst drought in 100 years," Terhaar said. Although the US cotton planting area has increased by 12%, the output is likely to decrease. " The report of the US Department of Agriculture released in June 30th is likely to announce a reduction in cotton planting area.


    In the three months ended March 31st, H&M's pre tax profits fell by 18%. They attributed the result to soaring cotton prices and inflation in Asian wages.

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