Will Cotton Import Quotas No Longer Be Issued To Raise Clothing Prices?

Yesterday, a national development and Reform Commission official said this year no longer issued cotton imports.

"The news is in the hot news of many financial websites. This news, which seems to be not very relevant to the common people, is actually related to people's" clothing, food and shelter "in the first place -- dressing.

Cotton import quota is no longer issued, which means cotton textile enterprises will purchase new cotton in China.

Compared with imported cotton, the price of domestic cotton is about 4000 yuan per ton.

The difference will be apportioned in the cost of products, and the business clothing and the low-end brands will be more affected.

In the gradual rise in prices, Liaoning's textile industry this year dropped 5% compared with last year's output, and most of them were at a loss.

Quotes domestic cotton prices "swing"

When consumers buy Textiles or clothing, they often take a look at the ingredient list to see how much cotton they contain, but they rarely care about the price of cotton as raw material.

In September, 2 years ago, the domestic cotton price was about 19000 yuan / ton, 2 months later, it soared to 33000 yuan / ton until February 2011 before reaching its peak. At the end of last month, the domestic cotton price had swung back to 19000 yuan / ton.

Li Qingxiang, President of Liaoning Textile Industry Association, said: "let's not see that the domestic cotton price seems to have returned to the level of 2 years ago, but the international cotton price is far lower than that of the domestic market, which is only about 15000 yuan / ton, and the price difference is 4000 yuan per ton.

This time, no more cotton import quotas will be issued, and textile enterprises will have to choose higher priced domestic cotton, and the cost will also rise.

The sharp contrast between domestic and international cotton prices has made companies eager to compete.

Import quotas, but limited quotas, are just a drop in the bucket to solve the problem.

The pressure on clothing and low-end brand clothing is the biggest.

Cotton is the basic raw material for making many kinds of textiles and garments. The fluctuation of cotton price will also affect the price of its offline products.

Lou Jinghong, President of Shenyang Garment Association, said: "no longer the quota of cotton imports, and the purchase of relatively high prices of domestic cotton will inevitably increase the cost of enterprises.

As for the clothing industry, the high-end brands are less expensive because of the lower fabric cost and higher brand value. The impact of cotton price rise is small, but the middle and low end brands and professional wear will be greatly affected. The main reason is that the fabric cost is relatively high.

There is little possibility of a big rise in clothing prices, but a small increase is possible.

In the past two years, careful consumers will find that the content of cotton is gradually decreasing, and other chemical fiber components such as polyester, nylon, spandex and so on are gradually increasing. This is also one of the ways to reduce costs.

For the price at the end of August, polyester fiber is about 10 thousand yuan / ton, domestic cotton price is 19000 yuan / ton, nearly double the price difference, let enterprises minimize the content of cotton in clothing, in order to reduce the pressure of cost rise.

Cotton textile production in Liaoning dropped by 5%

Recently, a lot of news about the high cost and low profit of the clothing industry has flooded the Internet. Many clothing brands have invested funds in real estate and other industries in order to reduce their losses.

The high cost and low profit situation also exist in the upstream cotton industry of clothing industry.

President Li Qingxiang said: "for Liaoning, the cotton textile industry has dropped by about 5% compared with that of last year, and most of the enterprises are in a state of loss, and some enterprises have put money into other industries to ensure the balance of payments."

In the cause of collective loss in cotton textile industry, the rising cost of manpower can not be overlooked.

President Li Qingxiang said: "in the cotton textile industry, the average cost of human labor can account for 30% of the cost. The rise is no longer a novelty. It is rising almost every year."

Cotton textile from raw material cotton to final factory requires at least four processes. The cost of human labor has risen and eaten a lot of profits.

In addition, domestic cotton prices are higher than international prices. For example, compared with Southeast Asian countries, the international cotton price is about 15000 yuan / ton, plus the processing fee of 5000 yuan of cotton spinning yarn, the price per ton is 20000 yuan, while the domestic cotton price which is not processed will be 19000 yuan / ton, which will affect the export price and export volume.

This year, the market environment is not ideal. Once there is no big breakthrough in the sales volume of the domestic market, plus the international market.

The reduction of export volume caused by price disadvantage will inevitably lead to the deficit of enterprises.