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The High Cotton Price Is Feared To Be "Normal" &Nbsp; The East China Autumn Winter Clothing Wholesale Price Rises By 1.

2010/10/14 14:14:00 57

High Cotton Price

After the temporary silence in 7 and August,

Cotton price

Since September, a round of crazy rise has surged from 17 thousand yuan / ton to the highest 24 thousand yuan / ton this week, or more than 40%.

Cotton prices have risen sharply for a short time and are likely to remain high for a long time, causing downstream garment and textile enterprises to suffer from their difficulties and take measures such as reducing production and raising prices to defuse risks.


Pang Jie clothing procurement Xiao Li said, at present, the market supply is tight, even the grey cloth is very difficult to buy.

Some factories could not complete the order before signing, but some factories even reluctantly purchase raw materials and complete the order, but the price of fabrics has changed for several days, and they are losing profits.

The company is considering that the peak of traditional orders at the end of the year may temporarily reduce the quantity of orders, and start production again when the price of raw materials is stabilized.


Mr. Cheng, who does fabric and grey cloth business in Shengze, said that when the market was not good, dealers and factories could get goods in arrears first, and then settle the payment again after one or two months.

But cotton prices are skyrocketing now, and downstream products are going up, and factories will be able to get cash with cash.

On the one hand, because goods are tight, they are also afraid of any slump in the market and the risk of customer default.


According to him, the order price of cotton poplin fabric made by a company with a factory was 8 yuan / meter in 4-5 months, and it rose to 8.50 yuan / meter in 6-7 months. At the end of September, it was 9 yuan / meter, and the two days before it reported 9.70 yuan / meter, and the contract yesterday turned to 10 yuan / meter.

"In this way, the profits of the customers must have shrunk, and if our dealers haven't prepared more goods before, they will not make much money.

Since the price is high, the capital will be occupied.

Inventory turnover

Slowing down, the risk of default is increasing.


The cotton is spun into yarn, woven into white embryos, and then printed and made into fabrics.

Fabric

Made into garments.

The high price of cotton is seriously impacting the middle and lower reaches of the textile and garment industry.

In addition, the backward production capacity of printing and dyeing enterprises has been largely shut down this year, which also has an impact on the cost and delivery time of garment and textile enterprises.

According to the Ministry of industry and information technology, there are 201 enterprises in the national printing and dyeing industry, including 89 in Zhejiang province and 61 in Jiangsu Province, which directly affect the production capacity of 2 billion 300 million meters in the whole year.


At present, the upward pressure on cotton prices has begun to pmit to the final consumption side, and the wholesale price of autumn and winter clothing in eastern China has generally risen by more than 10%.

If the price of cotton yarn rises by 5%, the price of ready-made clothes will increase by 2%.

But generally speaking, garment factories often lose profits before they can afford to raise prices.

Xiao Li said.


As supply and demand are difficult to change in the short term, the Khmer price will become a "normal" and will continue to have an impact on the domestic textile industry.

Shenyang Wanguo Securities recently reported that high cotton prices constitute a cost pressure on cotton spinning enterprises producing lower end products in the lower reaches, forcing many small and medium-sized enterprises to choose temporary cuts or suspend production and speed up the upgrading process of textile industry polarization.

The current round of cotton prices rose from the downstream end products overall rise.

From the links of cotton spinning industry chain, the upper reaches of cotton and yarns are the most expensive, while the Zhang Ji and the ready-made garments are relatively small, and the cost will be pferred to the terminal in the future.


According to the calculation, the domestic cotton output in this year is 6 million 700 thousand tons, the total domestic cotton demand in this year is about 10 million 800 thousand tons, the difference between the initial and end inventory is 550 thousand tons, the domestic cotton supply and demand has a shortfall of 3 million 550 thousand tons, and it needs to rely on imports to make up, which accounts for 43% of the total expected export volume of the world cotton in the same period.


"Cotton production in the first half of the year has become a major driving force for price increases. Strong consumer demand in the second half of this year has become a new driving force for the rise in cotton prices.

Against the backdrop of global resources grab, the price of cotton has hit the record high.

The price of cotton at least 20 thousand yuan / ton this year is likely to hit the historical high of 25 thousand yuan / ton.

Shenyin Wanguo thinks.

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