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    High Street Brands Catch Up With Cotton Prices Up &Nbsp; Cheap Clothing Will Be Terminated.

    2011/7/12 10:58:00 53

    Tide Brand Cotton Prices RiseCheap Clothing Ends

    In the three months ended March 31st, H&M's pre tax profits fell by 18%.

    They attributed the result to high inflation.

    Cotton price

    And wage inflation in Asia.


    Last week cotton trading in New York increased by 13% to $1.65 a pound.

    The international cotton Committee said that the rise in cotton prices came from the southern part of the United States.

    cotton

    The fear of poor harvest.


    In March 7th, cotton prices reached a peak of 140 years, that is, $2.2 per pound, two times the price of last year's cotton, which led to a substantial reduction in the profits of the Swedish fashion giant H&M.


    Allen Terhaar, executive director of the international cotton Commission, is responsible for the work of the US cotton Committee.

    "We will continue to see the price of clothing and furniture," he said.

    currency

    Retrenchment?

    Probably not.

    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.

    Between now and 2025, the demand for 20 million tons of fiber will increase, while the demand for the United States will only increase by 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.


    Retailers are facing more than cotton prices.

    The price of wool is also growing rapidly.

    Earlier this year, floods in Queensland led to the wholesale of wool from Australia, the world's largest wool producer.

    Price

    The increase almost doubled, and the price in June reached US $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 US is also one of the reasons for the rise in cotton prices, because 40% of the world's cotton trade comes 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.


    "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 tax rate was

    profit

    Down 18%.

    They attributed the result to soaring cotton prices and inflation in Asian wages.


     
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