Cotton Prices Soar And Europe And America Crisis: Textile Industry Trapped "Double Kill"

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"It can be said that this year is the most difficult year in history, which is more difficult than the 2008 financial crisis."

Sun Rigui, chairman of the group, said in an interview with reporters that there were two main factors leading to the industrial predicament: first, the cotton price rose sharply, which aggravated the business risk; two, it was affected by the risk.

Reporters in Shandong survey found that the "no money" situation in the textile industry chain exists in all links.

From cotton growers, cotton purchasers to cotton processing enterprises, cotton textile enterprises, and then to cotton finished products enterprises, there is no exception.

Interviewed by the business people and industry experts believe that the cost of raw materials in textile enterprises accounted for the highest proportion, cotton price "roller coaster" dramatically enlarged the cost control risk of enterprises, poked in the textile industry for decades, can not change the "old pain."

In the past few years, after the substantial increase in China's accession to the WTO, in recent years, with the increase of the price of production factors, including the labor force and the weakening or disappearance of many dividend policies, China's textile industry should not only deal with the "grab sheet" of some Southeast Asian countries, but also face the order caused by the weak demand in Europe and the United States.

They believe that the old textile industry may be relocated to export predicament next year.

To deal with the old pain, the relevant departments should co-ordinate the layout of raw material production, and enterprises should improve their market adaptability.