Home textiles as a "barometer" of China's foreign trade, the Canton Fair in 2010 suffered cold, the textile industry is also bleak due to the sharp rise in cotton prices.
On October 18th, the national cotton price index (level 328), which represents the average price level of domestic cotton prices, reached 24,256 yuan per ton, a year-on-year increase of 78.38%, which was the highest in 10 years.
Data show that since September, cotton prices have increased by nearly 40%, and cotton yarn prices have also increased from 26,000 yuan/ton in early September to 36,500 yuan/ton in mid-October.
“Now many companies are afraid to take orders. Because cotton prices rose by 30% to 40% in a month, and the price of end products is difficult to increase, it is also a loss.†Dong Fulong, Chairman of Shanghai Red Fuji Home Textiles Co., Ltd., told reporters.
"Leap away" Canton Fair
It is understood that from cotton to garment manufacturing is a complete set of industrial chain. Cotton is spun into yarn, then woven into white embryo, made into fabric through printing and dyeing, and finally garments are purchased through clothing enterprises. Cotton and cotton yarn are the basic raw materials for the textile and garment industry. Once its price has soared, it will break the production order of the entire industrial chain.
Because of this, domestic textile companies are faced with the situation of “riding the tigerâ€.
Domestic raw material prices have risen sharply, but the prices of foreign customers have not increased much, resulting in the stagnation of the operation of most domestic manufacturers.
However, even more trouble for companies is the change in payment methods. In the past, terminal manufacturers could delay payment of bills to upstream suppliers, but now they have to pay cash, which increases the pressure on corporate liquidity. "Enterprises can only pay cash in time, because today they do not pay cash, and they will also increase their prices tomorrow, not to mention letting other companies buy materials earlier," said Dong Fulong.
“Before the financial crisis, we usually received long orders, which lasted for half a year and another year. However, we did not make too high expectations during the Canton Fair. It is estimated that it will take two or three months short-term orders. Even if foreign customers want to We will not accept long-term orders,†Mao Xiahua, director of the trade management department of Shanghai Feima Import and Export Co., Ltd., told reporters.
It is understood that due to rising costs, many local exhibiting groups have maintained a conservative attitude towards the Canton Fair, and some companies have even reduced their stands. The main purpose of the exhibition is to understand the situation and publicize the brand, and it is not expected that orders will be high.
According to the process of the Canton Fair order, there are half a year from negotiation to delivery. The first is that the company negotiates with foreign customers, and then the customer makes comparisons and finally orders. With production time, the entire process can take up to 3 to 4 months.
"It is very difficult to judge the quotation and cost quotation in the next 3 to 4 months, but there is no quotation. How can customers place orders?" Dong Fulong said.
Firms are forced to increase prices
According to the latest data from the China**** Center, on June 18, before the central bank announced the resumption of exchange reform, the middle price of *** against the US dollar was 6.8275. By October 20, the exchange rate between the *** and the US dollar was reported. 6.6519. According to preliminary calculations by the reporter, since the resumption of exchange reform for three months, *** has appreciated by 2.57% against the US dollar. Coupled with the factors of raw material prices, rising labor costs and international instability, export companies are facing increasing pressure.
Measured, *** per percentage point increase in value, the industry's net profit rate will be a direct drop of 1 percentage point, while the textile and apparel industry's average net profit level is only 3% to 5%, facing the pressure of *** appreciation, Businesses will be on the verge of bankruptcy.
In general, after the cost rises, the downstream terminal manufacturers are daring to follow up the price increase due to excess production capacity, but are digested by reducing profits. However, due to the fierce price hikes of raw materials, the price increase by terminal manufacturers has become an inevitable trend.
“Because there is no material or stop orders, the relationship between supply and demand in the home textile industry is changing. With the national power production this year, the production lines of many companies have stagnated, and the prices of home textiles and clothing products in terminals may increase.†Dong Fulong Say.
It is understood that the price increase of textile home textile products is being brewed by enterprises. The head of a well-known brand textile exhibitor even admitted to the reporter: “I can tell you that we will not take orders at the Canton Fair. After the meeting, the full range of end-products of our company will increase prices by 20%. If prices are not raised, companies will Loss of bankruptcy."
In addition, due to a large number of markets in autumn, rising prices of raw materials will be reflected in winter wear. It is expected that the factory price of winter clothing will increase by about 20%, while the price of spring clothes will rise next year.
“It should be said that the situation facing the textile and garment industry is very urgent. If the country does not issue relevant policies, the entire industry may face the risk of collapse. Once the cotton price surges, and then form a great ups and downs, the textile enterprises will face the risk of bankruptcy.†said Dong Fulong. .
On October 18th, the national cotton price index (level 328), which represents the average price level of domestic cotton prices, reached 24,256 yuan per ton, a year-on-year increase of 78.38%, which was the highest in 10 years.
Data show that since September, cotton prices have increased by nearly 40%, and cotton yarn prices have also increased from 26,000 yuan/ton in early September to 36,500 yuan/ton in mid-October.
“Now many companies are afraid to take orders. Because cotton prices rose by 30% to 40% in a month, and the price of end products is difficult to increase, it is also a loss.†Dong Fulong, Chairman of Shanghai Red Fuji Home Textiles Co., Ltd., told reporters.
"Leap away" Canton Fair
It is understood that from cotton to garment manufacturing is a complete set of industrial chain. Cotton is spun into yarn, then woven into white embryo, made into fabric through printing and dyeing, and finally garments are purchased through clothing enterprises. Cotton and cotton yarn are the basic raw materials for the textile and garment industry. Once its price has soared, it will break the production order of the entire industrial chain.
Because of this, domestic textile companies are faced with the situation of “riding the tigerâ€.
Domestic raw material prices have risen sharply, but the prices of foreign customers have not increased much, resulting in the stagnation of the operation of most domestic manufacturers.
However, even more trouble for companies is the change in payment methods. In the past, terminal manufacturers could delay payment of bills to upstream suppliers, but now they have to pay cash, which increases the pressure on corporate liquidity. "Enterprises can only pay cash in time, because today they do not pay cash, and they will also increase their prices tomorrow, not to mention letting other companies buy materials earlier," said Dong Fulong.
“Before the financial crisis, we usually received long orders, which lasted for half a year and another year. However, we did not make too high expectations during the Canton Fair. It is estimated that it will take two or three months short-term orders. Even if foreign customers want to We will not accept long-term orders,†Mao Xiahua, director of the trade management department of Shanghai Feima Import and Export Co., Ltd., told reporters.
It is understood that due to rising costs, many local exhibiting groups have maintained a conservative attitude towards the Canton Fair, and some companies have even reduced their stands. The main purpose of the exhibition is to understand the situation and publicize the brand, and it is not expected that orders will be high.
According to the process of the Canton Fair order, there are half a year from negotiation to delivery. The first is that the company negotiates with foreign customers, and then the customer makes comparisons and finally orders. With production time, the entire process can take up to 3 to 4 months.
"It is very difficult to judge the quotation and cost quotation in the next 3 to 4 months, but there is no quotation. How can customers place orders?" Dong Fulong said.
Firms are forced to increase prices
According to the latest data from the China**** Center, on June 18, before the central bank announced the resumption of exchange reform, the middle price of *** against the US dollar was 6.8275. By October 20, the exchange rate between the *** and the US dollar was reported. 6.6519. According to preliminary calculations by the reporter, since the resumption of exchange reform for three months, *** has appreciated by 2.57% against the US dollar. Coupled with the factors of raw material prices, rising labor costs and international instability, export companies are facing increasing pressure.
Measured, *** per percentage point increase in value, the industry's net profit rate will be a direct drop of 1 percentage point, while the textile and apparel industry's average net profit level is only 3% to 5%, facing the pressure of *** appreciation, Businesses will be on the verge of bankruptcy.
In general, after the cost rises, the downstream terminal manufacturers are daring to follow up the price increase due to excess production capacity, but are digested by reducing profits. However, due to the fierce price hikes of raw materials, the price increase by terminal manufacturers has become an inevitable trend.
“Because there is no material or stop orders, the relationship between supply and demand in the home textile industry is changing. With the national power production this year, the production lines of many companies have stagnated, and the prices of home textiles and clothing products in terminals may increase.†Dong Fulong Say.
It is understood that the price increase of textile home textile products is being brewed by enterprises. The head of a well-known brand textile exhibitor even admitted to the reporter: “I can tell you that we will not take orders at the Canton Fair. After the meeting, the full range of end-products of our company will increase prices by 20%. If prices are not raised, companies will Loss of bankruptcy."
In addition, due to a large number of markets in autumn, rising prices of raw materials will be reflected in winter wear. It is expected that the factory price of winter clothing will increase by about 20%, while the price of spring clothes will rise next year.
“It should be said that the situation facing the textile and garment industry is very urgent. If the country does not issue relevant policies, the entire industry may face the risk of collapse. Once the cotton price surges, and then form a great ups and downs, the textile enterprises will face the risk of bankruptcy.†said Dong Fulong. .
Safety Reflective sparkle Glitter Rolls
Reflective Shiny Film,Reflective Shiny Sheet,Glitter Sparkle Vinyl
Zhejiang Caiyuan Reflecting Material Co., Ltd , http://www.china-reflectivematerial.com