China's clothing industry survey: cotton prices soared

Rising or falling, both of which are the cost of a garment that is 20% higher than in previous years

Recently, Mr. Zhang, who is doing foreign trade in Guangzhou Jinlongpan Foreign Trade Clothing City, is always in trouble.

An African guest set a single shipment and paid a deposit, but later found that the guest disappeared after earning no money. He is looking at how to handle this shipment.

"The 35 yuan pants do not, but the ex-factory price will be more than 30 yuan." Mr. Zhang pointed to a pair of jeans and asked: "The price of materials has gone up, how can pants not increase prices?"

Mr. Zhang said that in addition to the appreciation of the ***, material prices are an important reason for his loss.

The round of cotton price increases began around 2009 National Day.

Take Grade 3 cotton as an example. At that time, the price had approached 15,000 yuan/ton, and it had risen by 5,000 yuan, up by 50%.

Some time after the Spring Festival in 2010, the price of 129 cotton has always been stable at 16,000 yuan/ton.

Then, the standard cotton price index exceeded 16,000 yuan/ton, close to 17,000 yuan/ton mark, and the market price of high-grade long-staple cotton was as high as 24,000 yuan/ton.

"Before the new cotton comes down, cotton resources will be very tight." Some analysts believe.

At this time, “without cash, you can't accept cotton.” Huang Zhiwei, a warm trader who works in the cotton business, said that the slow sales of cotton in 2008 caused a significant drop in cotton production in 2009, which led to higher prices, which in turn led to cotton farmers and processing plants reluctant to sell.

What is more serious is that the international cotton supply is also very tight. Last year, the United States’ cotton harvest was not as good as in previous years. India is also controlling the export volume.

Under this circumstance, Mao Xiahua, director of the trade management department of Shanghai Pegasus Import and Export Co., Ltd., still participated in the 107th Canton Fair, but took short orders as the mainstay. "Even if the customer wants to make a long list, we will not take it."

Mao Xiahua’s vision has been verified.

On April 16th, at the 2010 Cotton Industry Summit held in Dezhou, Shandong, the delegates were amazed by the price of cotton: “It is going crazy!”

In the face of “crazy” cotton prices, the National Development and Reform Commission and the Ministry of Railways organized 284,000 tons of cotton in Xinjiang to the Mainland, but this was mainly used by 27 large and medium-sized textile companies and did not circulate in the market.

At this time, there were only 2.9 million tons of commercial inventories in the country, which was worse than the demand by 30-40 million tons.

On May 21, the National Development and Reform Commission convened a joint meeting on macroeconomic control of cotton, confirming that an additional 800,000 tons of cotton import quota was issued in May.

The market trend has not been reversed.

On May 26, Li Ren, an analyst at China Cotton Prospect Information Consulting Co., Ltd., said that the price of lint has already exceeded 18,000 yuan per ton.

By June, cotton prices broke the 18,000 yuan/ton mark.

Since then, many companies have predicted that "the price of cotton will be reduced from 18,000 yuan / ton to 16,000 yuan / ton, cotton yarn will also decline." Deputy General Manager of Shandong Wucheng Huaxing Group Cotton Co., Ltd. said that according to the company's market research As a result of the forecast, after the new cotton is listed in September, the cotton price will have to be reduced by at least 2,000 yuan/ton.

As a result, they began to sell storage cotton at the end of July.

At the same time, starting from August 10, China Reserve Cotton will sell at a reserve price of 16,500 yuan per ton, and each day will be about 15,000 tons of cotton.

However, before the reserve cotton is put on the market, relevant departments will open their cards to the public, which is equivalent to “directly telling the market that the government plans to auction 600,000 tons of cards.” Said Shanghai Meng, an agricultural product analyst at International **, which will further drive up prices.

Thus, in late August, private equity activist Jin Tao also brought huge sums of money into Zhengzhou Cotton.

“We achieved a nearly 4% gain in one week.” Jin Tao said that within the private equity circle, the amount of money that is closely watched for the cotton raccoon is more than 1 billion yuan. Just under the influence of various forces, cotton prices rose by 4.5% in August from the previous month. The average transaction price of reserve cotton has increased from less than 17,000 yuan per ton to more than 22,000 yuan per ton in mid-August.

At this time, Zhejiang Foreign Trade Trader Mr. Li, at the autumn fair, “has come back with a meal from a textile processing company. Customers are quite a few and are willing to place orders, but we are afraid to quote.”

At this time, a foreign trade clothing company in Jiangsu lost 400 million U.S. dollars due to the increase in cotton prices. They were picked up in March of the beginning of the year.

In September, the face price is even more crazy.

“Cotton prices have risen by 20% within 4 days.” On September 20, Wang Wei, deputy director of the Consumer Products Industry Department of the Ministry of Industry and Information Technology, said that on September 25, the price of cotton hit a 10-year high and exceeded 20,000 yuan. /Ton.

After only half a month, the price of cotton broke the trend of lightning and exceeded 30,000 yuan/ton. In just one and a half months, domestic cotton prices have risen by as much as 50%.

During the period, the United States Department of Agriculture (USDA) announced the 2010/11 global cotton production and sales forecast. According to the report, global cotton production is revised down by 60,000 tons from the September forecast, with China cutting 218,000 tons.

By mid-November 2010, cotton prices reached a record high of around 33,000 yuan per ton, which is almost twice as high as in the same period of 2009.

This is the highest cotton price record in 1999 when the country released its cotton price for more than a decade. Cotton has risen by several hundred dollars every day in recent days. A staff member of the China Cotton Association disclosed.

At this point, the cotton price is almost unbearable.

The Development and Reform Commission urgently issued a notice of the trend of the relevant company's stocks and demanded severe investigation and punishment of spreading price information, malicious hoarding, and driving up prices.

Immediately after, China's 328 grade cotton rushed to 31,235 yuan/ton on November 11th, diving sharply and fell to more than 26,000 yuan/ton.

Afterwards, it gradually stabilized in December and recovered slightly, hovering around 28,000 yuan/ton.

However, "but the contradiction between supply and demand has not been completely changed, it is unlikely to fall before the sharp rise in September 2010." Jiangsu Hongye ** director Zhao Weixiong analysis.

As Zhao Weixiong said, at the beginning of March 2011, the price of cotton jumped to 33,000 yuan/ton again.

“A lot of jeans manufacturers in Zengcheng, Guangzhou have been closed down or significantly reduced in size. If we cannot support it, we will consider switching to investing in other industries,” said Wu Yixiong, general manager of Southland Garment Co., Ltd.

Many businesses are becoming more and more difficult to survive.

“The price of cotton is soaring, labor and accessories are also rising. Today, the cost of a piece of clothing is 20% higher than in previous years. Most consumers may feel powerless.” Many companies say so.

According to Zhou Shaoxiong, chairman of Septwolves, "All clothing products will increase prices this year, and the price increase will be around 10-20%."

In this increase, there is also an increase in the cost of labor.

As some of the bosses say, artificial, raw materials and the appreciation of *** have become the company's "new three big mountains."

In 2011, Chinese companies can move this big mountain of labor?