Cotton Prices Are Increasing By &Nbsp; Textile Deals Are In The Ice Age.

"Many foreigners listen to the price and shake their heads."

At noon yesterday, Wang Ming, director of Jiangsu overseas group's booth, told the Yangcheng Evening News reporter.

Compared with the last Guangzhou Fair, Wang Ming's clothing price increased by about 15%.

Reporters asked many garment enterprises in the museum, exhibitors estimate the price increase range between 15% to 25%.

Cotton quilts and cushions are larger and larger.

Yang Zicheng, director of the booth of Guangzhou textile industry joint import and export company, told reporters that the price of the company's products was about 50% higher than that of the previous session.

"Cotton yarn has doubled.

This is a global phenomenon. India has cut production, and the United States is also raising cotton prices. "

Yang Zicheng said that the impact of price increases on the signing of the contract is still unpredictable, because they usually conduct formal negotiations after customers' enquiries, styles and samples are given.

"The first day of the exhibition is an inquiry, and it is not clear what the customer wishes to buy.

But rising prices will definitely affect sales. "

Wang Yu of Su textile group says.

The reason for price rise is not just cotton.

Reporters interviewed learned that, driven by cotton, chemical fiber, polyester and other materials are generally rising prices, coupled with labor costs, exchange rate and other factors, this year textile exporters spreads further compression.

"There are only three to five percentage points of profit, which is even harder to make."

Wang Ming complained.

Quotations prevail for 7 days.

The instability of cotton prices has also made exhibitors miserable.

Nantong Gree century cloth Co., Ltd. Ran Xiaoli told Yangcheng Evening News reporter, since August this year cotton yarn price per day, the original twenty thousand or thirty thousand yuan a ton, now broken 40 thousand is still rising, so that the company can not make long-term prices.

"The validity period of our offer is also shortened to 7 days, that is, a price is quoted for you, the order is valid within 7 days, and the price will be adjusted over 7 days."

The reporter found that the "7 day validity" has become a general rule for textile exhibitors, and the validity period of the quoted price can sometimes be as long as one or two months as the cotton price fluctuates. Even the quotation at the beginning of the year is still in use at the end of the year.

Other enterprises adopt the way of holding together and financing each other to stabilize the source of cotton.

Wang Ming of Jiangsu overseas group said: "we have many fixed cooperative enterprises, including clothing, cloth making and cotton collecting.

For example, the enterprises that receive cotton are short of funds, so we will fight over the past and help them buy Cotton first.

Earlier media reports in Xinjiang found that many textile enterprises in Jiangsu and Zhejiang provinces were heavily involved in the Xinjiang, and commissioned agents with cotton purchase qualifications to "store cotton".

Because the agents were mostly Wenzhou people, there was once a saying that "Wenzhou's idle capital was frying cotton".

Wang Ming is optimistic about the sale of the Canton Fair.

"After all, the whole industry is rising, and customers can't get a lower price when they find other houses, so the order of old customers is still guaranteed."

Domestic and international prices "mutual push"

By the end of October 28th, the Zhengzhou futures exchange's zhengmian 1105 contract rose 705 yuan / ton, closing at 27825 yuan / ton, and generating a new high price.

When the financial crisis spread in 2008, cotton was still an undervalued product - because the yield was less than that of soybeans and corn, and the global cotton planting area decreased significantly, and the output was extremely weak due to the influence of the weather.

The global economic recovery began in 2009, and cotton prices rebounded. Demand rebounded faster than expected.

Shenyin Wanguo research report shows that in September last year, Xinjiang, Shandong, Hebei and other major cotton producing areas low temperature and rain, resulting in a substantial reduction in production is expected to increase.

Since then, cotton prices have risen all the way, and the price has not changed after being repeatedly controlled by the national reserve. Last September to September this year, the price of Zheng cotton futures rose from 13000 yuan to 19500 yuan. In October, it broke through 27000 yuan, more than doubled, and was at the highest level in 15 years.

Because of the global cotton price inflation, domestic and foreign markets have "pushed each other".

Shenyin Wanguo research reported that from 2010 to 2011, domestic cotton output was about 6 million 700 thousand tons, accounting for inventory and reserves, and the gap between supply and demand was about 355 tons. "If the RMB appreciates substantially or the macro-economy once again recalitates, the loose monetary environment ends, and the demand will become worse, so that the trend of cotton uplink can be changed. Otherwise, the high cotton price will become a" normal ". This also makes the sales prospect of Chinese textile exporters become more uncertain.