Cotton prices upside down textile enterprises "risk awareness" stronger

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Business News on May 16

During this period of time, summer clothes suddenly heat up with the weather, and the conspicuous places in the shopping mall are covered with the latest summer clothes. However, it is not difficult for careful citizens to find that there are fewer and fewer pure cotton fabrics on the market, and manufacturers use other raw materials such as tapecotton and chemical fiber to replace them. The main reason is the high cotton price last year. However, a ton of cotton plummeted by 4000 yuan in the last month, and cotton prices have been declining since they hit a high of 30000 yuan/ton in March this year. According to the first textile network, however, the decline in the price of raw materials did not make textile enterprises laugh, but the market atmosphere was more dignified, and the prices of products and raw materials were upside down. The ups and downs of cotton prices make textile enterprises more risk-conscious and more reluctant to produce pure cotton clothing.

Little cotton clothing this summer

Miss Li is shopping for new summer clothes in the mall. She finds it increasingly difficult to buy a pure cotton coat. "After shopping for half a day, I didn't buy pure cotton clothes, mostly made of cotton blended fabrics, chemical fiber fabrics and other materials. She said that the summer clothes launched this year are not made of cotton.

Manager Chen of Runhe Shopping Center's clothing department told reporters that a dress this summer may cost 100 yuan more than last year, with an average increase of 10% in summer clothes. And even brand clothes, the proportion of pure cotton texture is also less and less. In the first two years, the fabrics were mainly cotton, polyester blends and other products. Since last year, the fabrics in the summer clothing series have accounted for more than 50%. In addition, the fabrics such as chiffon, Dongfeng yarn, polyester filament and other silk-like yarn have also increased a lot.

Cotton prices fell spinning enterprises not happy?

According to a report by the First Textile Network, cotton clothing on the market has decreased. Many merchants explained that the price of cotton rose sharply last year and the increase in raw materials made the cost of making cotton clothing too high and the production was reduced. Since the beginning of April this year, domestic cotton prices have fallen rapidly at an average of 500 yuan/ton every three days. In one month, cotton prices have plummeted by nearly 4000 yuan/ton. Cotton prices all the way down, whether it will make textile enterprises active again, to increase production of cotton clothing?

The person in charge of Keqiao Fenghua textile enterprise told reporters that from now on, textile enterprises are not optimistic about the decline in cotton prices. Cotton prices fall, cotton yarn falls more severe. Therefore, it can be said that the decline in cotton prices is bad news for us. According to the first textile network report, on the surface, cheap cotton can indeed reduce our costs, but our next cloth and garment sellers are also looking at the price of cotton. as soon as the price of cotton falls, the price of our products will be pressed even lower. However, veil and other fabrics and clothing are often produced one season in advance. The summer fabrics on the market now do not use current cotton, but cotton at high prices. As a result, the prices of products and raw materials are upside down. The selling price of cotton yarn and cotton cloth is low, but the cost is high, and the sales and raw material prices are upside down.

Keqiao Spinning Enterprises Reduce Cotton Use

The market is always buying up and not buying down. In the interview, many people in the industry said so. Therefore, even though the price of cotton has fallen sharply, most textile and garment enterprises still dare not take the risk of buying cotton, and are more reluctant to produce pure cotton clothing.

In the face of the adverse effects of huge fluctuations in cotton prices, many textile and garment enterprises in China Textile City (600790, Guba) have made adjustments to comprehensively adjust the yarn count, process and product structure, reduce the amount of cotton, and at the same time speed up the research and development of non-cotton natural fibers such as bamboo fiber, reduce dependence on cotton, and make products more personalized and attractive.

For example, Shaoxing Xinle Textile and Chemical Fiber Co., Ltd. is a medium-and high-end shirt fabric manufacturer, and the competition for shirt fabrics is fierce; but Xinle Textile has still maintained a good momentum of development in this round of cotton price rise and fall, mainly due to the increase in the added value of products through transformation and upgrading, and profits are no longer greatly restricted by the price of raw materials.

Please indicate the source of China Textile Network
EDITORIAL: TEXTILE NET