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    Cotton Prices Fluctuate And Stimulate Clothing Enterprises' Nerves

    2011/8/30 10:55:00 45

    Cotton Price Clothing Winter Wear

    Before the inventory has not yet been digested, capital turnover is not strong, the impact on corporate profits, so some small businesses stop production.

    But those who do not have too much stock, and the spinning companies that sell with them are making money and not losing money.


    But many small and medium-sized textile enterprises are hoarding.

    cotton

    It is easy to lose money.

    When buying it, cotton is 28000 yuan -30000 yuan / ton, and now it drops to 19000 yuan / ton. The raw materials that are stored up will be eight thousand or nine thousand yuan per ton. Cotton raw materials are losing money, while human capital is rising, about 500 yuan ~600 yuan / month, and other costs are also rising.

    Many small and medium-sized textile enterprises are closed down.

    Now we have to say that the price fluctuation of cotton is causing disaster.


    Generally speaking, the production cycle of garments is at least three quarters to one year.

    Therefore, this year's autumn clothing was probably produced after last autumn, and winter clothing corresponded. At that time, domestic cotton price was the most expensive period.

    Therefore, the rising price of raw materials at that time is bound to drive up autumn clothing this year.

    That is to say, if the market is right, the summer and autumn clothing next year will probably be reduced.

    Consumers see the end product clothing prices rise, only terminal, but the most basic clothing manufacturers are afraid to mention too high prices.

    Of course, that kind of big clothing enterprises will surely make more and more money, because their product prices have been rising.

    SMEs are most affected now.


      

    In this way

    Cotton price

    The undulating situation has aroused the heated debate between clothing experts and meager netizens.


    Lu Ning, the head office of Shandong Ya Li Clothing Group Co., Ltd.: cotton prices have fallen, raw material procurement has indeed saved costs, but clothing companies have not taken the lead in profits, and many of them have been consumed in circulation.

    For example, the domestic and foreign market hot money participates in the clothing industry, the clothing price is scrambled up, take the opportunity to profit, we also did not earn much.


    Yin Xiuhuai, deputy director of Longyao Agricultural Bureau of Hebei, said: our local small textile factories have been closed down, and there are still some failures.


    Sina's humble opinion of netizens


    Smile-hand: don't wait until late then, the most late national day will be down! - see the comment on Bo Wen's "cotton price stage" on windy days.


    Midnight drunk: in August 8th, China's cotton price index has dropped to 19635 yuan / ton, a drop of nearly 40% compared to the 31000 yuan / ton in March.


    CCTV financial brand management group: the price of autumn clothing is up 10%.

    Insiders said that the main clothing

    Raw material

    Although the spot price of cotton has fallen by nearly 40% from March to now, in fact, most of the autumn clothes are made of spring cotton, and many enterprises are still in the stage of raw material de stocking.

    As cotton prices soared last year, many cotton companies blindly hoarded a lot of cotton. Now the fall in cotton prices has resulted in a large increase in production costs and a rise in product prices.


    Leggera: cotton prices, which have always been quite uneventful, began to soar from September 1st last year, to a record high. Then they quickly dropped back and went up again.


    Stroll the longitude and latitude line: from the current domestic cotton price trend, the price of 19800 yuan / ton of new cotton storage and storage has been difficult to hold up the chassis of cotton prices.

    This week, the yarn and cloth market continued to decline with the pressure on cotton prices continuing to decline and the downstream demand still slump.

    Cotton textile enterprises continue to substantially reduce the price of yarn and cloth in the process of "dumping" and "selling".


    Elastic cement: the price rise this autumn is due to the rise in cotton prices in the spring. Now the cotton price is reduced by 40%. Will the price of clothing be reduced next spring? Believe it or not, I don't believe it! {page_break}


    AI ye EY: cotton prices fall, the domestic garment enterprises have not improved, customers tend to chase up, do not catch up and fall, orders on hand are slow, reducing 20-30%.

    The bargaining power of garment enterprises is not strong. In order to maintain production, they have to make a deficit.

    The economy is a multiple multiple equation. The external cause and the final result are often not as complex as we all know.


    Conclusion: cotton raw materials are in a loss, while human capital is rising, about 500 yuan ~600 yuan / month, and other costs are also rising.

    Because of the high price, the sale of autumn clothes is cold.

    Consumers complain that the price of clothing is too high. Clothing companies can not reduce prices because they use high priced cotton in spring.

    It is like this reincarnation, as if no one has benefiting from the ups and downs of cotton prices, or no one will admit that he has been benefiting.

    However, as I mentioned in the article, many clothing companies of big brands have been raising their prices, and maybe they can make a profit.

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