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The Cotton Price Is Too High, And The Home Textile Industry Is In An Awkward Position.

2010/11/23 16:16:00 72

Cotton Price Increases In Home Textiles

From 13 thousand yuan / ton in September 1st to nearly 28 thousand yuan / ton in November 3rd, in just two months, domestic cotton prices seem to have taken a roller coaster, with a total increase of 54%.


At the first China Home Textile Forum held recently, Yang Donghui, vice president of China Industrial Association, said that the recent increase in cotton prices was mainly the result of the short term effect of loss, and urged domestic enterprises not to follow suit and rush to buy.


Industry experts predict that in the past 2010~2011 years, the supply and demand gap of the global cotton market has reached 890 thousand tons.

If the recent supply of cotton can not be effectively increased, this shortfall is likely to continue until next June.


High cotton price and profit from phagocytic industry


Since September, a new wave of raw material price increase has been threatening in China. From September 10th to October 25th, the price of 21S cotton yarn has increased by more than 25%, and the price of home textile fabrics has increased by 15%.

In a sense, domestic textile enterprises are facing

financial crisis

The most severe test after that.


According to the latest statistics of the 14 home textile industry clusters in China, the home textile industry has completed the total output value of the textile industry 144 billion 440 million yuan in 1~8 this year, an increase of 17.96% over the same period last year. The main business income was 141 billion 680 million yuan, an increase of 18.33% over the same period last year. The total profit was 6 billion 600 million yuan, an increase of 24.25% over the same period last year, and the average profit margin of the textile industry was 4.66%, an increase of only 0.23 percentage points over the same period last year.


The reason for this is that the price of cotton yarn, which is the main raw material of towels, is higher than that of the main raw material of bedclothes and the main raw material of polyester fabric, in the words of Yang Zhaohua, President of China Textile Industry Association.

In addition, towel enterprises independently bear a long production process, and cotton yarn rises too fast, resulting in the downstream enterprises difficult to digest and control.


"Domestic

market

In view of the fact that the price rise of cotton since September is carried out on the high price level in August, the enterprises themselves are hard to digest, and the price of products must be adjusted accordingly. The sales volume of products after price adjustment will be affected, thus affecting the normal production and operation of enterprises.

Yang Zhaohua frankly, in addition, because of excessive raw material prices, the two quarter of autumn and winter, orders and long-term orders were severely damaged, resulting in further compression of the profit margins of enterprises.


Home textile enterprises are under heavy pressure.


From the reporter's interview, under the dual pressure of "no rice under the pot" and "inability to raise prices", many home textile enterprises have been caught in the embarrassing situation of small profits or even losses.


Shen Shunnian, managing director of the warp knitting industrial park in Zhejiang, Haining, China's most famous town of warp knitting, told reporters that this year, the park has seen a good market for production and sales. It is the best year for the market in recent years.

In the first three quarters, the total industrial output value of the park was 11 billion 590 million yuan, an increase of 41.5% over the same period last year, and the sales revenue reached 11 billion 700 million yuan, up 45.7% from the same period last year. However, the total profit and tax amount was only 500 million yuan, and the growth rate was only 5.6% over the same period.


"Besides labor force, fuel power cost rising, and energy saving and emission reduction, the rising price of raw materials such as cotton is an important factor."

Shen Shunnian said that in the long run, the rising price of raw materials is an inevitable trend, but the speed and extent of price increases must be moderate, and the fluctuation of prices should not be large and large. Otherwise, the downstream enterprises will hardly be able to bear the pressure of cost increase.


Export enterprises become "the hardest hit areas"


Reporters interviewed learned that, because of the relatively low proportion of raw material costs and the comparative advantages of brands and channels, domestic enterprises have better ability to pmit prices and resist risks.


The chief executive of Hunan Meng Jie home textile company, lacquer hung Jie, told reporters that at present, the operating rate of enterprises is adequate, and the handheld orders next year are also ideal.

The company is a typical domestic sales enterprise with an export ratio of only 6% to 8%.


Reporters learned that during the Canton Fair this year, foreign buyers basically accepted the high price of 28 thousand yuan / ton of cotton, and began to carry out a week's flexible order system, that is, domestic.

enterprise

In 7 days, the failure to take orders means automatic abandonment, which will undoubtedly affect the production plan of domestic enterprises next year.


Many home textile enterprises participating in the Canton fair said they were confused about the price of raw materials and the future market situation.

The head of a domestic textile enterprise even jokes that "when the enterprise prepares for the end of the Canton Fair, it will leave the employees and wait until the Spring Festival starts again next year."


Anhui Xingxing light textile group is a complete export textile enterprise facing the US market.

Guan Lei, general manager of the group, told reporters that the company is already in a state of low profit, and that the export will only take part in the purchase.

According to reports, cotton costs account for about 73% of the total cost of the company's products, up to 80%.


"In order to reduce costs, the company has shut down all the external plants which account for 1/3 of the total capacity, and the current operating rate of the enterprises is only 2/3." tube Lei said helplessly.

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