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Dalian'S More Than 300 Garment Enterprises Above Designated Size Are Affected By Rising Cotton Prices.

2010/8/28 11:23:00 54

According to the Dalian Textile Association, recently

cotton

Prices rose rapidly, and the "328" and "329" cotton price per ton rose from 14000 yuan at the beginning of the year to 18000 yuan, or 30%.

Affected by this, 21 commonly used cotton yarns used in the past year were 18000 yuan per ton, and now it has reached about 28000 yuan. From the beginning of spring this year, cotton prices have risen by 25%-30% in general, such as the price of pure cotton jersey has risen by nearly 10000 yuan per ton.

The soaring price of cotton, cotton yarn and cotton cloth not only shifted the cost to the downstream garment industry, but also engulfed the profits of garment enterprises.

According to estimates, because cotton accounts for about 40% of the cost of clothing, and cotton price rises by 5% every time, the profits of garment enterprises will drop by 2%.

Dalian has more than 300 garment enterprises above Designated Size, and most of them are under pressure due to rising cotton prices.

In particular, export oriented garment enterprises have been out of breath because of the appreciation of the renminbi and the increase in labor costs.

Raw material

The sharp rise is undoubtedly worse.

Some garment enterprises are hesitant to face overseas orders, and "fat meat to the mouth" is a true portrayal of Dalian clothing enterprises.

Analysis of the industry, this round of cotton prices rose mainly

supply and demand

Tensions.

In 2009, the cotton planting area in China decreased, and the total output was about 6 million 400 thousand tons, about 1 million 100 thousand tons less than in 2008.

With the global economy improving, foreign orders increased this year, stimulating the demand of domestic textile enterprises for cotton.

Second, natural disasters cause global cotton production reduction.

According to market forecasts, China's flood will lead to a reduction in cotton production by 5%-10%. About 30% cotton fields in Pakistan and other cotton producing areas are damaged.

Some large enterprises in the industry hoarding cotton speculation also led to a rise in cotton prices.

At present, the market is still used last year's cotton. In October this year, the new cotton market will stabilize cotton prices for the next few months.

However, because of the less domestic cotton output this year, the overall trend of cotton prices will continue to rise in the future.

In this regard, Dalian garment enterprises began to take some measures.

For example, we should purchase raw materials through many channels, take account of domestic and foreign raw materials market, or directly purchase farmers' seed cotton; some garment factories should reduce cotton use and use more polyester raw materials.

Enterprises with brand advantage have begun to raise their clothing prices in autumn and winter this year. It is expected that the wholesale price of cotton in autumn and winter will increase by 10%-15%.