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    Cotton Price "Roller Coaster" Prick The Textile Industry

    2011/9/19 23:53:00 34

    Cotton Prices Sting The Textile Industry

    At this time last year, cotton took only 3 months, and the price was 17000 yuan / ton.

    Skyrocketing

    Up to 34000 yuan / ton.

    At the beginning of this year, cotton was like a roller coaster, which fell from 34500 yuan / ton, and recently dropped to about 21400 yuan / ton. The spot price of cotton has fallen by nearly 40%.

    It is understood that such a decline, dragging down the cotton yarn, cotton market, textile enterprises sales

    Sharp decline

    This has made the spinning and weaving enterprises and parts of the textile and dyeing enterprises mainly.

    Torment


    "Cotton prices fluctuate too much, and directly lead to many small textile enterprises shutting down or switching to other substitutes, such as producing polyester, viscose, acrylic and other textile materials."

    Shen Jinpeng, general manager of Zhejiang Yi Zhen Jin Textile Co., Ltd.


    An insider said bluntly that, from the current situation, many small and medium businesses

    scale

    Enterprises are still struggling because their current product profits have reached a critical point.

    Some small enterprises with backward technology and equipment have been temporarily suspended.


    Nanhua futures customer manager Yan Kaishun told reporters that he has been concerned about the trend of cotton, cotton prices this year.

    Plunge

    Nearly 40%, the imbalance between supply and demand is the main reason.

    The collapse of raw materials led to a sharp decline in downstream sales and lower demand, which again led to a fall in cotton prices.

    Yan Kaishun analysis said: "the global economic growth slowed down, and the measures to control inflation in the first half of China restrained cotton demand to a certain extent. Secondly, as the US dollar continued to decline in the first half of the year, the appreciation pressure of RMB increased and the cost of manpower increased. On the contrary, India and other countries had the advantage of cheap labor, which led to the shift of textile orders to countries with more cost advantages.

    In addition, the expansion of the global planting area has expanded supply on the other hand.

    Last year's high cotton price attracted farmers to expand their cotton planting area. This year's weather is also conducive to the growth of cotton. This year's production is a foregone conclusion.

    At the same time, the emergence of substitute products such as polyester and viscose will produce some pressure on the processing and production of cotton.


    Shen Jinpeng, who has been engaged in textile sales for many years, introduced his company's pformation from cotton fabrics to polyester products in the second half of last year. Therefore, through the development of new polyester products this year, production and marketing have maintained a good growth, and the impact of cotton fluctuations is not large.


    However, Shaoxing County Green Xuan Textile Co., Ltd., which sells the main cotton fabric, is not so lucky.

    General manager Chen Musheng said, because cotton products are unsalable, the company has to stop the production of elastic cotton cloth at present.

    But luckily, Chen Musheng didn't chase after the high cotton prices and hoarded raw materials and stocks, so although the business was light, the loss was not great.


    In view of the fluctuating price situation of cotton, Shi Guoping, director of the Administration Department of the county economic and Trade Bureau, believes that the development of the textile industry will face a severe test. Only those enterprises that are undergoing pformation and innovation can survive, and many small and medium-sized enterprises will face greater pressure to survive.

    Because as a textile and dyeing enterprise, pformation and innovation are the only way to deal with all kinds of risks.

    Transformation and innovation can not be done. Enterprises should make efforts to carry out innovation as a normal form in normal times, so that when risks come, they can reflect in time, avoid risks and succeed in new fields.


     
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