Enterprises In The Stock Mire &Nbsp; Cotton Prices Fell Below Twenty Thousand Yuan

At present, many garment enterprises are troubled by inventory, new orders are not booming, and cotton prices will be explored all the way.

Last year, the situation was reversed. The price of textiles and clothing was at the top of the list. Cotton prices rose steadily with the growth of clothing orders.

In August of this year, Li Ming (alias), a clothing trade company, would not go to Pinghu's two partners, because the two partners usually made clothes for a clothing listed company from August to December.

In August this year, the two partners took the initiative to find Li people to do the order, because the order that the listed company could not support until the end of the year.

China's cotton net domestic price monitoring system data show that the price of domestic 328 grade cotton dropped from around 29 thousand yuan per ton in February 7th this year to about 19 thousand yuan in August 7th, diving nearly 10 thousand yuan per ton.

The high inventory of domestic garment enterprises leads to a reduction in the number of new orders, thus reducing the demand for cotton, which is one of the reasons why cotton prices have plunged sharply.

A company with an annual income of about 100 million yuan in Pinghu said that the number of clothing orders received by the company decreased by 10% in the second half of this year compared with that of last year, and the profit margin of production dropped from 15% in previous years to about 5% this year.

Another person in charge of the business also said that the number of clothing orders has decreased.

Last year, Pinghu's clothing enterprises had a good profit.

Li people said that at that time there were so many export and domestic sales lists that Pinghu's clothing companies couldn't get through the list. Li could only look for orders from Anhui's clothing factories, and there were still some orders that could only be rotten in the drawer of the desk because there was no factory processing.

Because of the strong demand, the price of domestic grade 328 cotton went up to 31 thousand yuan per ton in November 2010.

For a while.

So far this year, some garment enterprises have been bogged down in stock.

In 2010, Li Ning Co's inventory value was 806 million yuan, an increase of 27.5% over 2009; in 2010, Li Ning Co receivables amounted to 1 billion 610 million yuan, an increase of 50.5% compared with 2009.

Affected by this, Li Ning Co in June this year, in the fourth quarter of 2011, the new product orders, clothing and footwear products ordering volume decreased, is expected to make Li Ning Co annual sales revenue decreased by about 5%.

002269.SZ also suffers from inventory problems.

In 2011, a quarterly report showed that the amount of apparel in the United States was 3 billion 160 million yuan, an increase of about 600 million yuan compared to the value of 2 billion 550 million yuan at the beginning of this year. For the enterprises of such a scale, according to a reasonable 1 billion 500 million yuan inventory scale, about 1 billion 500 million yuan or more of the inventory was produced.

Li Min said that in Hangzhou, some brands of clothing stalls, cotton padded clothes, down garments, each stall stock in the number of 20 thousand ~3, the stock amount reached 6 million ~700 million, under normal circumstances, the proportion of inventory in general 20%~30% is normal, but this year's inventory ratio is close to 50%, due to the need to digest a large number of inventory, the number of new products orders decreased significantly, the clothing enterprises around the new quarter of the number of orders reduced by 30%, so the demand for cotton will also be greatly reduced, cotton prices are not surprising.